The Broadband Dilemma (with Janice Hauge and Mark Jamison)
Sep 19, 2024
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Janice Hauge, a broadband policy expert, and Mark Jamison, a telecommunications specialist, dive into the intricate world of broadband access in underserved communities. They discuss the $42.5 billion BEAD Program aimed at closing the digital divide but highlight significant delays that threaten its effectiveness. The duo examines the challenges in funding allocation, the need for competition, and transparency. They also tackle the complexities states face in navigating NTIA approvals and the current inefficiencies impacting millions of Americans.
The slow progress of the NTIA's Broadband Equity, Access, and Deployment Program raises concerns about leaving many Americans without essential internet access.
Learning from previous broadband expansion failures emphasizes the importance of transparency, accountability, and competition to ensure effective funding allocation.
Deep dives
The Importance of Broadband Access
Broadband access is recognized as a critical driver of economic growth. During the COVID-19 pandemic, the lack of internet connectivity highlighted how essential it is for conducting business, accessing services, and engaging in civic life. Many areas are still underserved or face high costs for broadband service, necessitating government subsidy programs to bridge the affordability gap. These programs aim to enhance connectivity, but without careful planning and execution, they may struggle to foster the desired impact on internet access.
Lessons from Past Broadband Initiatives
Previous government initiatives to expand broadband, such as those launched under the American Recovery and Reinvestment Act, showed significant shortcomings, including little to no impact on adoption rates. Many of these projects faced challenges like funding misallocation and lack of accountability, resulting in wasted resources and unfulfilled goals. Studies revealed that often, funds were spent without achieving meaningful broadband expansion, with grants leading to questionable outcomes. Learning from these failures is crucial for current efforts to ensure effective utilization of the substantial financial resources being allocated for broadband expansion.
Strategies for Improvement and Accountability
The current evaluation of broadband policies emphasizes the need for transparency, competition, and accountability in funding allocation. States recognized for their proactive efforts, like Louisiana and Idaho, have established clear communication with stakeholders and have created easily accessible websites detailing their broadband plans. Ensuring that funds are allocated effectively requires states to have robust mechanisms for monitoring and reporting, while also promoting competitive bidding processes for broadband providers. By facilitating communication and sharing experiences between states, there is potential to enhance the overall effectiveness of broadband initiatives.
The National Telecommunications and Information Administration’s (NTIA) $42.5 billion Broadband Equity, Access, and Deployment (BEAD) Program, passed by Congress three years ago, set out to close the digital divide by bringing broadband to unserved and underserved communities. Yet despite the ambitious goal of getting all Americans online, progress has been slow. As of September 17, serious delays continue to plague the initiative, with 13 states still waiting for the NTIA to approve their initial proposals. These delays jeopardize the program’s effectiveness and risk leaving millions of Americans without access to essential digital infrastructure.
Here to sort through the mess are two members of AEI’s Broadband Barometer Project, Janice Hauge and Mark Jamison. Janice is a professor in the Department of Economics at the University of North Texas, where she works on broadband policy and regulation in the telecommunications and broadband industry. Mark is a nonresident senior fellow at AEI where he focuses on technology’s impact on the economy, telecommunications, and Federal Communications Commission issues. He is concurrently the director and Gunter Professor of the Public Utility Research Center at the University of Florida’s Warrington College of Business.
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