100 Pages Posted: 1 Apr 2014 Last revised: 1 Nov 2014
Date Written: September 15, 2014
This study evaluates the quality, dynamism, and value of G7 broadband network infrastructures in order to determine how successful they have been. It judges policy success by applying a multi-factor formula including deployment, utilization, performance and financial criteria to a wealth of data (more than 90 graphs and tables) on all aspects of G7 broadband dynamics.
It finds three policy models active in the G7 today:
1) The “Pioneer Model”, used by the U. S. and Canada, that features R &D subsidies, deregulated urban markets, and limited subsidies for rural markets.
2) The “Contingent Model”, used in Japan, Germany, and U. K, that provides open access and price controls over legacy infrastructure while permitting carriers to make profit from advanced infrastructure.
3) The “Utility Model”, used in France and Italy, in which an all-powerful national regulator targets far-off goals with promises of massive subsidies that often fail to materialize.
It finds that the Pioneer Model is most effective, the Contingent Model is second, and the Utility Model is worst.
Keywords: broadband, open access, international comparisons, Internet, mobile, communications policy, subsidies, public utilities
JEL Classification: A11, C82, D24, D62, F01, G31, H23, H54, K23, L52, O57, O30
Suggested Citation: Suggested Citation