Monday, August 31, 2020

A "free market ethos" does not apply to advanced telecom infrastructure

Online school forces America to confront the digital divide: What went wrong over the years? How did the birthplace of the internet become a nation where broadband is unavailable to large chunks of the population, keeping students from taking part fully in modern education and their parents from taking advantage of the modern economy? Big investments have been made in the internet in the U.S., but not uniformly or with an eye to expanding connectivity as far as possible. It’s not a task that private industry cares to take on, nor is it one that the public sector can solve on its own—not in a country with such a strident free-market ethos. (Emphasis added)
This is a false dichotomy. Advanced telecommunications infrastructure tends toward natural monopoly and not a robust competitive market. As much as some would like it to be, high cost barriers to entry and first mover advantage don't permit that to be the case.

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