Public testimony before the
San Francisco Public Utilities Commission

San Francisco’s Involvement in Providing Broadband Service

Today the San Francisco PUC is considering the city’s involvement in wireless broadband deployment. The Pacific Research Institute (PRI) applauds the efforts of everyone involved in working towards a more prosperous and healthy San Francisco. In that spirit, I would like to offer some comments based on our research. PRI is a non-partisan think tank based in San Francisco that focuses on finding solutions to important public policy problems.

My area of expertise at PRI is technology policy, and in particular, broadband issues. We are living in an increasingly digital world, making access to quality broadband an important issue. According to our research, the San Francisco Bay Area Metropolitan Statistical Area (MSA) is the No. 1 market for wireless Internet accessibility in the United States.

Further, FCC data show that when all San Francisco zip codes are taken together, the number of high-speed Internet providers (DSL, cable modem, wireless, satellite, fiber) offering broadband service to at least one customer is around 12. When one examines the zip codes of poorer neighborhoods, like the Bayview District, Hunters Point, and Western Addition, the data show they are serviced by the same number as the city average.

This makes the case for a government-funded roll out of broadband quite weak. In addition, there are serious unintended consequences associated with government-run broadband that could have a detrimental effect on the private sector. For instance, if San Francisco were to offer wireless service for free, it would undercut the very businesses that are driving innovation in this area.

Below is a link to an article that deals with the issues I raise above. I would be happy to comment in more detail at a later time if requested.

http://www.technewsworld.com/story/38627.html

Sonia Arrison
Director of Technology Studies
Pacific Research Institute