Pandemic an inflection point for U.S. telecom policy

We Need Our Internet Access Networks to Be Something They Are Not: As the Covid-19 medical crisis is contained and Congress does what it can to recharge the economy, an important economic recovery question will be whether our political leaders will push huge stimulus dollars to Big Cable and Big Telecom companies under the premise that we need better networks and they are the logical choice for solving that problem. Giving big checks to the seven companies that control most of our internet infrastructure will mean we are doubling down on a system that should be overhauled. The Boards at the large incumbent ISP’s have their fingers crossed that Covid-19 doesn’t lead to a re-thinking of the current arrangement. To make sure the $500 Billion annual ISP annuity continues, an army of lobbyists is likely tasked with making sure the pandemic is not an inflection point for internet access and infrastructure.

If Congress wants to stimulate the deployment of very reliable, low-cost networks that are designed to favor consumers, it should provide low-interest loans that allow municipalities, electric co-ops, and entrepreneurs to create non-profit, open access, fiber optic networks where the subscribers to the network own the infrastructure. If Congress made inexpensive capital available to build this infrastructure, the entire country would get reliable and robust networks over the next ten years and the next time we’re all forced to live life at a distance, we won’t have to worry if our networks will have the capacity and flexibility to meet the demands we place on them.

The incumbents have a real credibility issue now having built up a track record over the past two decades of taking billions of dollars in federal subsidies yet leaving lots of Americans with substandard advanced telecom infrastructure.

Policymakers have been punked by the incumbents into believing the issue is one of addressing a "broadband" bandwidth gap inherent in their scarcity, unit pricing based business models. When in fact as the author of the Medium post points out, the real issue is insufficient fiber to the premise #FTTP infrastructure. American consumer culture makes it easy for the incumbents to frame bandwidth as a "good, better, best" consumer commodity and price tiered accordingly. As long as policymakers see this as a consumer commodity, they'll continue to fly blind, chasing "broadband speeds" and have a difficult time properly seeing #FTTP as essential infrastructure.