[ NNSquad ] Re: Obama Broadband? / ITIF: "Competition to take on telecom and cable is 'misguided' idea"

[Larry Press <lpress@csudh.edu>]

Lauren,

The back-and-forth over the weekend on broadband policy inspired me to 
take some data I had gathered on telecommunication liberalization and 
write a short article incorporating some of the topics we had been 
discussing.  If it is appropriate, send it to the list and ask them to 
give me feedback off list.

Larry Press



The draft is at:

http://bpastudio.csudh.edu/fac/lpress/draft/policygeneral.doc


Abstract:

Broadband policy:  beyond privatization, competition and independent 
regulation

Abstract

Since the era of Reagan and Thatcher, there has been a global move from 
centralized economies toward market economies.  There has been a 
parallel move in communication infrastructure from government owned or 
controlled monopolies toward privatization with competition and 
oversight by independent regulatory agencies – PCR policies.  PCR 
policies have been widely adopted, but problems like the growing gap 
between developed and developing nations and the relative decline of the 
US, a leading PCR proponent, persist.  We present evidence indicating 
that PCR policies have had little or no effect, and then discuss reasons 
why the effect has been limited.  We conclude with a discussion of 
proactive government planning, investment and procurement alternatives, 
which, in today’s economy, must balance rapid spending to achieve 
economic stimulus against the goal of deploying next-generation 
infrastructure while avoiding anticompetitive behavior by the owners of 
that infrastructure.  The decisions we make today will shape our 
telecommunication infrastructure for decades.

•    Privatization, competition and independent regulation (PCR)
•    PCR does not suffice
•    The (minimal) effect of PCR
•    The limitations of PCR
•    Beyond PCR
•    Conclusion