Broadband: Should We Regulate High-Speed Internet Access?

by Robert W. Crandall, James H. Alleman

Overview

There is widespread concern in the telecommunications industry that public policy may be impeding the continued development of the Internet into a high-speed communications network. In the absence of ubiquitous, high-speed ¡°broadband¡± Internet connections for residential and small-business customers, the demand for IT equipment and new Internet service applications may stagnate. Broadband policy is controversial in large part because of the differences in the regulatory regimes faced by different types of carriers. Cable television companies face neither retail price regulation of their cable modem services nor any requirements to make their facilities available to competitors. Local telephone companies, on the other hand, face both retail price regulation for their DSL service and a requirement imposed by the 1996 Telecommunications Act that they ¡°unbundle¡± their network facilities and lease them to rivals. Finally, new entrants are largely unregulated, but many rely on facilities leased from the incumbent telephone companies at regulated rates to connect to their customers. This asymmetric regulation is the focus of this volume, in which telecommunications scholars address the public policy issues that have arisen over the deployment of new high-speed telecommunications services. Robert W. Crandall is a senior fellow in the Economic Studies program at the Brookings Institution. His previous books include (with Martin Cave) Telecommunications Liberalization on Two Sides of the Atlantic (2001) and (with Leonard Waverman) Who Pays for Universal Service? (Brookings 2000). James H. Alleman is an associate professor in interdisciplinary telecommunications at the College of Engineering and Applied Science, University of Colorado, on leave at Columbia University.

Product Details

ISBN-13:	9780815715924
Publisher:	AEI-Brookings Joint Center for Regulatory Studies
Publication date:	05/28/2003
Series:	AEI-Brookings Joint Center for Regulatory Studies
Pages:	338
Product dimensions:	6.46(w) x 9.12(h) x 1.25(d)

About the Author

Robert W. Crandall is a senior fellow in the Economic Studies program at the Brookings Institution, where his research has focused on telecommunications and cable television regulation, industrial organization and policy, and the changing regional structure of the U.S. economy. His previous books include Broadband: Should We Regulate Internet Access? (Brookings, 2002), Telecommunications Liberalization on Two Sides of the Atlantic (Brookings, 2001) and Who Pays for Universal Service? (Brookings, 2000). James H. Alleman is director of research at the Columbia Institute of Tele-Information, and a visiting associate professor in the Columbia Business School, on leave from the Interdisciplinary Telecommunications Department at the College of Engineering and Applied Science, University of Colorado, Boulder.

Table of Contents

1	Introduction	1
2	Broadband Mysteries	9
3	The Demand for Bandwidth: Evidence from the INDEX Project	39
4	The Demand for Broadband: Access, Content, and the Value of Time	57
5	Wired High-Speed Access	83
6	From 2G to 3G: Wireless Competition for Internet-Related Services	106
7	Internet-Related Services: The Results of Asymmetric Regulation	129
8	Competition and Regulation in Broadband Communications	157
9	Regulation and Vertical Integration in Broadband Access Supply	197
10	Broadband Deployment: Is Policy in the Way?	223
11	The Financial Effects of Broadband Regulation	245
12	Subsidies, the Value of Broadband, and the Importance of Fixed Costs	278
13	The Benefits of Broadband and the Effect of Regulation	295
	Contributors	331
	Index	333