The Broadband Problem : Anatomy of a Market Failure and a Policy Dilemma

While the Internet revolution has vastly improved communications among businesses and individuals in the US, pressure has been building for faster and less expensive broadband data services. However, broadband services and prices have not kept pace either with demand or with progress in information technology. This title analyses the markets and policy issues underlying the broadband dilemma. Ferguson asserts that the Telecommunications Act of 1996 and federal policy have failed to provide sufficient levels of new entry, competition and innovation in the local telecommunications market, which remains dominated by monopoly telephone companies. New entrants and Internet-based firms remain disadvantaged relative to the monopoly incumbent local exchange carriers (ILEC). The combined result of these market and policy failures is inadequate technological progress, innovation and productivity growth in advanced Internet services and in telecommunications services in general. Ferguson believes federal policy must be adjusted to ensure the robust infrastructure necessary for advanced Internet services, electronic commerce, open-systems HDTV, videoconferencing and improved voice telephony. As The Internet Revolution Continues To Unfold And Transform Telecommunications, Pressure Is Building For Faster, Less Expensive, And More Widely Accessible Broadband Service. Such A Development Would Facilitate Improved And Less Expensive Traditional Applications Such As Voice Telephony And Web Browsing. It Would Also Enable New And Useful Applications Such As Internet-based Television, Videoconferencing, And Software Distribution. Broadband Has Great Potential To Improve Efficiency And Productivity, Even To Improve National Security In Some Cases. Broadband Service And Affordability, However, Have Consistently Lagged Well Behind Demand And Progress In Information Technology, With Damaging Results. The Internet Revolution Remains Incomplete And Threatens To Stagnate If The Situation Continues. In The Broadband Problem, Economist And Technology Entrepreneur Charles H. Ferguson Explains The Causes And Ramifications Of This Damaging Bottleneck, And He Offers Suggestions On Improving The Current State Of Affairs. He Asserts That Current Telecommunications Law And Policy Have Not Provided Sufficient Levels Of New Entry, Competition, And Innovation In The Local Telecom Market. The Continuing Dominance Of Ilecs (incumbent Local Exchange Carriers) In That Market Impedes The Healthy, And Much-needed, Development Of An Efficient Broadband Market. The Result Of These Policy And Market Failures Is Inadequate Technological Progress, Innovation, And Productivity In Advanced Internet Services And Telecommunication Services Generally.--book Jacket. Introduction -- Telecommunications In The Internet Age : Very High Stakes -- Technological Performance -- Financial, Strategic, And Political Conduct Of The Ilecs -- The Ilecs' Competitors -- The Policy System And Alternatives In The United States : Causes And Implications -- Policy Recommendations. Charles H. Ferguson. Includes Bibliographical References (p. 217-225) And Index. div pAs the Internet revolution continues to unfold and transform telecommunications, pressure is building for faster, less expensive, and more widely accessible broadband service. Such a development would facilitate improved and less expensive traditional applications such as voice telephony and web browsing. It would also enable new and useful applications such as Internet-based television, videoconferencing, and software distribution. Broadband has great potential to improve efficiency and productivity, even to improve national security in some cases. Broadband service and affordability, however, have consistently lagged well behind demand and progress in information technology, with damaging results. The Internet revolution remains incomplete and threatens to stagnate if the situation continues. In The Broadband Problem, economist and technology entrepreneur Charles H. Ferguson explains the causes and ramifications of this damaging bottleneck, and he offers suggestions on improving the current state of affairs. He asserts that current telecommunications law and policy have not provided sufficient levels of new entry, competition, and innovation in the local telecom market. The continuing dominance of ILECs (incumbent local exchange carriers) in that market impedes the healthy, and much-needed, development of an efficient broadband market. The result of these policy and market failures is inadequate technological progress, innovation, and productivity in advanced Internet services and telecommunication services generally. The broadband problem is holding us back, and thus must be addressed and solved. With this important volume, Charles Ferguson has contributed mightily to that mission./p /div Team DDU......Page 1 Contents......Page 6 PREFACE......Page 8 ACKNOWLEDGMENTS......Page 12 ABBREVIATIONS......Page 14 1 Introduction......Page 18 2 Telecommunications in the Internet Age: Very High Stakes......Page 48 3 Technological Performance......Page 74 4 Financial, Strategic, and Political Conduct of the ILECs......Page 114 5 The ILECs' Competitors......Page 155 6 The Policy System and Alternatives in the United States: Causes and Implications......Page 186 7 Policy Recommendations......Page 210 NOTES......Page 234 INDEX......Page 244