Commentary: Policy Levers and Demand Drivers in Korean Broadband Penetration

Abstract

The drive to increase broadband penetration has reached a critical policy point in the United States with President Bush,the Federal Communications Commission, and numerous industry groups all offering new agendas. Naturally, many eyes have turned to Korea,which has been the undisputed world leader in broadband deployment for several years.

The United States should consider the benefits of increasing on-line government services as well as the benefits of increasing computer education. These are costly projects to be sure,and so their prospects for adoption are uncertain, but they undeniably increase the attractiveness of broadband and decrease consumer reticence to subscribe. Onthe other hand, THE United States should and probably will maintain its traditional skepticism for more direct market intervention, such as government provision of infrastructure or below market rate loan to particular companies.

Keywords: Broadband, penetration

JEL Classification: Z00