Tuesday, April 26, 2005

Cook Report on US Broadband

"The talk is all about investment in broadband. But the reality is the use of lobbying and lawyers to twist the framework of regulations so that cablecos and telcos are free to sell expensive and obsolescent broadband. This issue of the COOK Report scrutinizes the current state of regulatory gridlock in the USA. It looks to Canada to answer questions like why Bell Canada’s cost for DSL is only 10.95 Canadian and most American prices are nearly $40.

We claim that building a broadband infrastructure is important. The tardy telcos say that they need encouragement given the huge expense of the buildout. However, the poor quality, broadband DSL offered is likely so cheap to deliver that the result is a subsidy of the inefficiencies of the old phone network. The goal is supposed to be radical change. The result is likely more of the same. As we shall show, policy is built on a wing and a prayer because we simply have no way to find out what DSL actually costs companies like Verizon and SBC to deliver."

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