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Telecrisis: How Regulation Stifles High-Speed Internet Access
PRI Study
By: Thomas W. Hazlett, Edward D. Hearst, Randolph J. May, Adam D. Thierer
1.1.2003
Broadband, or high-speed Internet access, has the potential to make a dramatic and rapid transformation in the daily lives of all Americans. It will make it easier for consumers to use many new services such as real-time distance learning, interactive health care, and on-demand entertainment. It will also make it easier for businesses to deliver these services and for workers to telecommute, expanding efficiency in the marketplace. Silicon Valley has long been clamoring for the increased rollout of broadband, but the issue affects the entire nation. For instance, many rural consumers wonder why they are unable to get broadband. City dwellers question why the service is so expensive.
Less than 10 percent of U.S. households and only six percent of small and medium-sized businesses have broadband access. There have been multiple studies showing the potential for economic growth if these numbers were to increase, with one study estimating $500 billion in annual economic benefits to the U.S. economy and the other estimating an increase of 1.2 million new jobs. Indeed, President Bush announced at his August 2002 economic summit that in order to jump-start the economy “we must bring the promise of broadband technology to millions of Americans.”
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