DSL unbundling is negatively correlated with new fiber investment, according to new research by TPI Vice President for Research and Senior Fellow Scott Wallsten. Similarly, platform competition (cable and facilities-based DSL providers) is positively correlated with fiber deployment. Wallsten’s paper uses a new dataset to examine empirically the effects of unbundling on investment in new fiber networks in Europe.
Broadband
High-speed data connections, or broadband, are critical to the economy. Our work on broadband covers a wide range of topics, including the digital divide, wireline and wireless provision, spectrum, net neutrality, competition, and more.
Net Neutrality, Unbundling, and their Effects on International Investment in Next-Generation Networks
Network neutrality has been a contentious issue in the United States for several years, but is increasingly debated elsewhere, with the EU, several European countries, and the Japanese government all examining the issue.
Measuring the Effectiveness of the Broadband Stimulus Plan
The newly enacted economic stimulus package includes $7.2 billion in grants, loans, and loan guarantees to bring broadband to rural areas lacking high-speed Internet services. The American Recovery and Reinvestment Act of 2009 charges government agencies not only with choosing grant recipients and setting performance benchmarks, but also with measuring results. Only a carefully preplanned evaluation strategy will enable them to accurately assess the effectiveness of the broadband stimulus.
Wallsten on How to Evaluate Broadband Stimulus Dollars
The recently enacted $7 billion broadband stimulus plan presents a unique opportunity to learn what kinds of broadband subsidies can make a difference, Technology Policy Institute Vice President for Research and Senior Fellow Scott Wallsten explains in a new article.
Wallsten Universal Service Testimony
On March 12, 2009 TPI Vice President for Research and Senior Fellow Scott Wallsten testified before the House Energy and Commerce Committee, Subcommittee on Communications, Technology, and the Internet on reforming the universal service high cost fund. Subsidies from the high-cost fund to rural telecommunications providers have increased from $1.7 billion in 1999 to nearly $5 billion today. Wallsten recommended moving from the current inefficient system to one that awards subsidies through competitive bidding. Such reverse auctions for universal service have been used successfully in other countries and could reduce subsidies and benefit consumers.
Measuring the Digital Divide
Accurate measurement of digital divides is important for policy purposes, but existing methodologies and data have limited our ability to examine the issue. James Prieger and Wei-Min Hu compare the performance of alternative methods using a large dataset on DSL subscription, paying particular attention to whether women, blacks, and Hispanics catch up to others in broadband adoption. Duration analysis, which sheds light on how groups progress along adoption curves, reveals the most useful information about digital divides and how they change over time. Policymakers can use the information to identify groups for which a divide is widening rather than closing. Their results support the collection of broadband statistics in panel form, where the same households are followed over time.