Charles Ferguson and the “Broadband Problem”

Robert W. Crandall
Robert W. Crandall Adjunct Senior Fellow - Technology Policy Institute

May 15, 2004

Executive Summary

Charles Ferguson has published a book that advocates a major increase in government intervention in the U.S. market for high-speed, “broadband” Internet services. His proposals are based on a faulty understanding of the effects of current telecommunications regulation and unsubstantiated claims that current participants in the broadband marketplace are exercising monopoly power.

His policy recommendations would not only fail to accelerate the pace of broadband diffusion in the United States, but they would surely provide a disincentive for carriers to invest in the network upgrades required to extend broadband and to provide even higher-speed Internet access for U.S. consumers.