Friday, January 15, 2010

Yet another flawed analysis of forthcoming U.S. broadband plan

Here's another in an ongoing series of flawed analyses in the mainstream media lately on the U.S. Federal Communications Commission's statutorily mandated task to develop a plan to ensure build out of advanced telecommunications infrastructure accessible to all Americans.

The problem with them is they incorrectly conflate lack of competition with market failure to suggest why this infrastructure isn't fully built out. It's the latter and not the former that's the cause. There isn't robust competition in a failed market because the business economics and externalities keep vendors out, leading to the formation of broadband black holes. The lack of competition is the symptom, not the underlying disease. Why is it that no one seems to get this simple, basic reality in the current coverage of the FCC's forthcoming broadband plan?

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