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September 14, 2004

Election Pledge: Broadband Access for All

The Wall Street Journal reports, "At the onset of the Great Depression, supporters of President Herbert Hoover's presidential campaign promised 'a chicken in every pot and a car in every garage.' This year's election pledge: high-speed Internet connections for all."

"For months, President Bush and his Democratic challenger, Sen. John Kerry, have been one-upping each other about the necessity for ubiquitous broadband and how to achieve it. But for all the rhetoric, the two candidates aren't far apart and both duck a central issue: Should a nationwide broadband rollout be subsidized by the government? Industry executives, who by early August had contributed nearly $11 million to the presidential candidates, are pushing for a national broadband policy to speed adoption of the technology. Countries with such policies, including South Korea and Canada, have used government funds to boost subscription rates, and the technology industry wants the U.S. to do the same."

President Bush recently called for "universal, affordable access to broadband technology by the year 2007." Crandall, Hahn, Litan, and Wallsten examine the economic strengths and weaknesses of different policies for achieving that vision in their paper: Universal Broadband Access: Implementing President Bush's Vision. The authors argue that removing price and unbundling regulations at the wholesale and retail levels would help increase the diffusion of broadband. Banning Internet access taxes would be beneficial, but such a ban would be less effective than removing these regulatory barriers to competition.

In Local Broadband Access: Primum Non Nocere or Primum Processi? A Property Rights Approach Bruce M. Owen and Gregory L. Rosston write "High-speed or broadband Internet access currently is provided, at the local level, chiefly by cable television and telephone companies, often in competition with each other. Wireless and satellite providers have a small but growing share of this business. An influential coalition of economic interests and academics has proposed that local broadband Internet access providers be prohibited from restricting access to their systems by upstream suppliers of Internet services. A recent term for this proposal is 'net neutrality.'"

Also of interest from the Joint Center:

The Joint Center book Broadband: Should We Regulate High-Speed Internet Access?

Charles Ferguson and the "Broadband Problem" Robert W. Crandall

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