As the FCC develops America’s first national broadband strategy it will be important to focus on both broadband supply and demand as well as the presence of market failures within the broadband marketplace. Relying on markets alone will not meet our country’s future broadband needs. Instead, to meet the goals for broadband coverage outlined by the FCC, targeted subsidies should be used to expand coverage and adoption beyond what the market will provide.
In this FCC filing, ITIF discusses the policy and non-policy factors that affect broadband deployment and outlines an appropriate policy framework for a successful national broadband strategy. The report suggests seven policies for the Plan to consider:
Policies to Stimulate Broadband Supply
• Enact more favorable tax policies to encourage broadband investment, such as accelerated depreciation.
• Continue to make more spectrum available for next generation wireless data networks, in part by using unlicensed spectrum more effectively and shifting some spectrum currently used for television to other uses.
• Reform the Universal Service Fund program to extend support for broadband in high cost areas to all carriers.
• Fund mechanisms to collect more accurate information on broadband access.
Policies to Stimulate Broadband Demand
• Support digital literacy programs and personal computer purchases for schools and libraries.
• Exempt wired and wireless broadband Internet access from federal, state, and local taxes.
• Support new applications, including putting more public content online, improving e-government, and supporting tele-work, health IT, and e-learning programs.
