Physics, Economics, and Telecom Regulation

Deck: 

Strange Bedfellows

Fortnightly Magazine - July 2021
This full article is only accessible by current license holders. Please login to view the full content.
Don't have a license yet? Click here to sign up for Public Utilities Fortnightly, and gain access to the entire Fortnightly article database online.

With current proposals for the federal government to spend a hundred billion dollars subsidizing broadband deployment, a debate has broken out on whether to allow any of the funding to be spent on municipal broadband systems. To resolve that debate, I suggest looking to physics and economics. Let me start with the physics.

Physics incorporates a wave-particle duality for light. Light acts in some ways like a wave, and in other ways like a particle. In some aspects of telecom regulation, in contrast, there is a binary choice. For example, a service can either be a telecommunications service, or an information service, but it cannot be both. 

EEI Annual Meeting 2024 - June 18-20

I would suggest that we would be better served if Congress did not make the binary choice of categorically excluding municipal broadband from the proposed subsidy program. We need to make sure we have every tool in the toolbelt available to solve the digital divide.

This full article is only accessible by current license holders. Please login to view the full content.
Don't have a license yet? Click here to sign up for Public Utilities Fortnightly, and gain access to the entire Fortnightly article database online.