Deloitte: $130 to $150 Billion Would Fix US Broadband Market A new report by Deloitte claims that $130 to $150 billion in fiber investment would shore up the United States' lagging broadband networks and create a country that's leading the broadband charge -- instead of consistently rating as average in most available broadband metrics. The full study by the firm notes that this $150 billion investment would not only ensure that fifth generation (5G) wireless will enjoy even coverage, but the added fiber investment would shore up coverage gaps in fixed-line broadband competition as well.

"It is essential that fiber gets deployed closer to the customer to enable next generation wireless and to ensure affordable high speed connectivity across urban, suburban and rural geographies," said Deloitte's Dan Littmann. "Motivating this investment requires the removal of legacy regulations, faster migration to IP networks; and new monetization mechanisms that allow carriers and investors to justify upfront investment in fiber." Of course most of you realize by now that an overall lack of competition -- and regulatory capture by a handful of giant, incumbent ISPs (Comcast, AT&T, Verizon, Charter) is why the United States finds itself in this predicament in the first place. Deloitte's report kind of floats around that fact to sell another narrative: one in which this investment only comes to bear if the broadband sector is further deregulated. To achieve the goal of a glorious broadband future, Deloitte recommends "eliminating regulatory barriers that prevent carriers from operating a single IP network" (read: let AT&T and Verizon kill consumer protections requiring they continue to service taxpayer-subsidized copper) and "avoiding regulation that limits carrier innovation in creating new monetization mechanisms" (read: usage caps and overage fees). Again, the problem is that blindly deregulating the already-uncompetitive broadband sector doesn't magically create investment when there's no competition acting as an incentive. Removing oversight of companies like AT&T doesn't magically make the company want to extend fiber to the home further to customers. Nor does it prevent the company from abusing this lack of competition in creative ways (privacy, net neutrality). If anything, we've historically seen the opposite happen when both regulatory accountability and competition are removed from the equation. As for this $150 billion, Deloitte also seems to ignore that we've been throwing billions in subsidies and tax breaks at these companies for decades, often for networks that never actually got fully built. Throwing more money at the problem without first fully acknowledging the widespread abuse of taxpayer funds by incumbents -- certainly is no panacea. If you had $130 to $150 billion to spend on US broadband, how would you dole out the money? How would you ensure it was used to achieve the greatest benefit to consumers?







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Most recommended from 82 comments



GOD666

join:2017-03-10 2 edits 9 recommendations GOD666 Member eminent domain is the solution We obviously cannot depend on America's ISP's (Internet Service Providers) to do the right thing, as nearly every time we have either paid them (outright) or given them a tax break, they more than often used the bulk of those extra funds only to give their CEO, CFO, CTO, CIO, CMO, and everyone else on their board of directors and higher upper management a pay raise. This is later then followed up by a price increase on consumers and what little, if any (sometimes virtually nothing), is actually used to expand or upgrade America's Internet Infrastructure.



You, The American People, have paid for a nationwide fiber optic network several times over. In the late 1980's and early 1990's our government not only paid the phone companies outright, they provided them tax breaks, and part of the taxes you pay in your utility (phone) bill, is for that reason. Cable companies have not been excluded, they too have been included in several payouts and tax breaks.



I say we paid for it, multiple times, and they have beyond received a fair market value for the network and infrastructure that is out there. It is the time we take (claim) what we paid for and it is in the nation's best interest that we do so. Eminent domain is our best option and history has proven in this regard, that it may be our only true option to get the practical results we want and have been paying for (given that the ISP's have proven repeatedly not to be trustworthy and only serving their self-interest).

StuckOnVZDSL

join:2015-02-26

Pittsfield, PA 8 recommendations StuckOnVZDSL Member Improving rural broadband would be a good start So many rural communities are underserved (or not served at all). Isn't it time to quit treating them as second class citizens of the internet?

Anon32e75

@pacswitch.com 2 recommendations Anon32e75 Anon Rural areas As a person living in a centurylink CAF phase II area without any available DSL service,billions more should be spent in rural uneconomic areas.



I would be happy if all cellular companies,particular AT&T post and prepaid,would offer 512 kbps tethering. AT&T could offer an additional tiered plan for $70.



Also DSLREPORTS can you dig into the alledged Gophone rebranding to AT&T Prepaid that's been reported on howard's forum?