Economists’ Statement on U.S. Broadband Policy, AEI-Brookings Joint Center for Regulatory Studies, Working Paper 06-06-01

Economists’ Statement on U.S. Broadband Policy: Broadband, or high-speed access to the Internet, has generated significant economic benefits. Certain regulations, however, are slowing investment and deterring entry into the broadband market. In this statement, we make the following two recommendations that would remedy these regulatory defects and thereby lower artificial barriers to competitive provision of broadband services: Recommendation 1: Congress should eliminate local franchising regulations, which serve as a barrier to new entry. Recommendation 2: Congress and the Federal Communications Commission should make more spectrum available to private parties and allow them to use it or trade the right to use it, so that spectrum will go to its highest-valued uses. The bottom line is that investment in broadband should be as easy as possible. Regulations that primarily protect incumbents or serve as barriers to entry should be removed. View on SSRN

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