I like fast internet. Who doesn’t? But what evidence is there that faster internet spurs economic growth?
I wonder because the Federal Communications Commission just came out with a new plan. “It’s “a 21st century roadmap to spur economic growth and investment, create jobs, educate our children, protect our citizens and engage in our democracy,” says FCC Chairman Julius Genachowski.” Apparently faster internet is an elixir for anything that ails you.
USA ranks as low as 15th in the world in broadband adoption, threatening “America’s global competitiveness.” according to the FCC Chairman. What evidence is there for the claim that our internet threatens our global competitiveness? I’m not saying it couldn’t be better, but I just do see our internet as being a problem. How do people use broadband right now in the 14 countries with faster internet? What are all of the amazing things they are doing with the internet that we can’t do? Also, there are places in the U.S. that have fiber to the curb? What are the amazing things these people doing with the internet or than pirating music faster.
There is a role for the FCC to make improvements. Here are some ideas:
1. Fight against monopolies. The reason, in many cases why we have monopolies in the provision of internet is because local governments have granted monopolies to Comcast, Cox, Verizon, etc. When monopolies are created by the government, they harm consumers by limiting choice.
2. Widen the reach of mobile broadband. The FCC proposes to do with by charging fees on the channels TV broadcasts current use. Government ownership of the airwaves is the problem, not the cure. The problem with government ownership is that the government makes decisions based on politics. The FCC should propose to auction off this spectrum, not impose fees. When the spectrum is in private hands, either those of the broadcasters or other people, they will have the incentive to better utilize the spectrum. I don’t know how the spectrum will be used, but I’m sure it will be used better than it is today.