U.S. Chamber Report on Broadband Technology & Regulation
Written by Brian Schulman
In a report to the U.S. Chamber of Commerce titled "Network Effects: An Introduction to Broadband Technology and Regulation," Charles Davidson and Michael Santorelli of the Advanced Communications Law and Policy Institute at New York Law School offer a primer on broadband infrastructure technologies, and take a policy stance in regards to future regulation of network infrastructure.
The report begins by establishing widespread broadband proliferation as both a powerful, life-changing tool for the individual and a vital component of economic development. In a basic history of network evolution, Davidson and Santorelli attribute the explosion of infrastructure development in the U.S. to the essentially hands-off regulatory approach to wireless networks and the Internet.
They argue that it's necessary to continue this "pro-investment" approach to ensure commercial participation in growing and improving broadband infrastructure technologies, thereby advancing consumer welfare. That is, only through a minimally invasive regulatory approach will market forces have the ability to continue to improve and protect the Internet and the public interest it serves.
Specifically, Davidson and Santorelli argue that attempts to regulate the capability of commercial interests to manage traffic, especially in light of the rise of high-bandwidth peer-to-peer file sharing, will result in a less stable, higher latency network and exert a chilling effect on the development of bandwidth-intensive applications while endangering potentially life-saving technologies such as VoIP and real-time health monitoring services that rely on rapid, reliable transmission. The basic perception of the Internet as a blind infrastructure in which all information receives equal priority, they argue, is no longer feasible.
Davidson and Santorelli summarize some of the elements of regulatory strategy that would maintain a pro-investment environment. These include:
- Careful targeting of funds in a broadband industry stimulus package should the next administration provide one, such that a wide spectrum of deployment methods are incentivized.
- Increasing federal support of public-private partnerships in establishing highly targeted, local deployment strategies for broadband in unserved areas.
- Retooling the Universal Service Fund (USF) that served in the deployment of the telecom network such that the USF will begin to focus on broadband infrastructure development.
- Avoidance of policy that will threaten the organic nature of a freely competitive market, such as a reduction of providers or network media (DSL, cable, fiber, etc) in a given locality.
To read the report in its entirety, download the PDF here. Published December 2008.
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