Brookings: its not about ‘net neutrality, its about sound economics and policy

March 29, 2006 by  

Agree with this analysis or not..it provides clarity on the issues
as well as 2 sound recommendations for breaking the U.S. broadband
gridlock.

Why the debate over ‘net neutrality’ is misplaced
Robert W. Hahn and Scott Wallsten. March 2006.

Specifically, policymakers should consider whether some
factors are preventing more competition in high-speed Internet access,
and more choice for consumers.

Two artificial barriers reduce competition and choice today.

The first is restrictions on the use of spectrum—those valuable
airwaves that carry wireless signals. Because of outdated regulations,
much spectrum simply cannot be put to its highest-valued use. Congress
and the FCC could give the economy a boost estimated to be in the
hundreds of billions of dollars by making more spectrum available and
allowing licenses to use it to be traded. One of these uses could very
well be more wireless broadband options that would add more choices for
consumers.

Second, local governments also block competition by arbitrarily
determining who is allowed to enter the market and what types of
services can be provided over broadband lines. New firms wishing to
provide broadband services often must obtain local approval, access to
rights of way, pay fees, and meet regulatory obligations regarding
service provision. Firms already providing service must seek local
regulatory approval regarding what information can flow across their
broadband lines. Telephone companies hoping to provide video services,
for example, must negotiate approval separately with each city.
Congress could eliminate most of these wasteful and anti-consumer rules.

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