Demand side incentives for broadband

VerizonFollowing up on Monday’s posting about building broadband networks, I noticed Verizon’s comments to the US government about the American broadband stimulus bill speaks in similar terms to what I have been suggesting.

Verizon observed that 90 percent of U.S. households already have access to broadband, and that of the households that have computers, 80 percent of them subscribe to broadband services.

Verizon is calling for the program to focus on extending broadband connections to unserved areas, and addressing demand-side factors that hamper growth, such as many households still lacking a computer.

Verizon took issue with those seeking to attach regulatory conditions to broadband funding:

In order to ensure that the recovery act’s broadband programs do not get bogged down in regulatory wrangling that would undermine quick job creation and economic stimulus, [the government] also should avoid imposing regulatory ‘strings’ or eligibility criteria that will deter participation or otherwise inhibit sustainable broadband investment and job creation.

In other words, keep net neutrality restrictions off this program. Recall that last month, we wrote about the kinds of strings that some wanted attached to funding.

We have a session called Building Broadband on June 15 at The 2009 Canadian Telecom Summit. On June 16, we have a panel looking at Net Neutrality. Have you registered yet?

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