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Policy, Federalism, and Regulating Broadband Internet Access

Author

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  • Brennan, Timothy J.
Abstract
Following recent telecommunications mergers, local (mostly municipal and county) governments and the federal government are fighting over who should determine whether cable television systems must make their facilities available to unaffiliated providers of high-speed ("broadband") Internet service. This intergovernmental dispute is only the latest in a series of such clashes regarding competition and communications policy. A brief review of the policy suggests that substantively, local open-access requirements are not yet warranted. However, the economics of federalism, primarily that the relevant markets are local, indicates that local governments should have the right to choose these policies, perhaps erroneously. Federal preemption could prevent learning from multiple independent local "experiments." The best case for limiting local authority is if it is only the exploitation of opportunistic ability to extract nationwide rents in exchange for approving transfer of the incumbent's cable franchise to an acquiring firm.

Suggested Citation

  • Brennan, Timothy J., 2001. "Policy, Federalism, and Regulating Broadband Internet Access," Discussion Papers 10823, Resources for the Future.
    • Handle: RePEc:ags:rffdps:10823
    DOI: 10.22004/ag.econ.10823
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    Cited by:

    1. Montolio, Daniel & Trillas, Francesc, 2013. "Regulatory federalism and industrial policy in broadband telecommunications," Information Economics and Policy, Elsevier, vol. 25(1), pages 18-31.
    2. Francesc Trillas, 2008. "Regulatory federalism in network industries," Working Papers 2008/8, Institut d'Economia de Barcelona (IEB).
    3. Rajabiun, Reza & Middleton, Catherine A., 2013. "Multilevel governance and broadband infrastructure development: Evidence from Canada," Telecommunications Policy, Elsevier, vol. 37(9), pages 702-714.
    4. Francesc Trillas, 2008. "Regulatory federalism in network industries," Working Papers 2008/8, Institut d'Economia de Barcelona (IEB).
    5. Montolio, Daniel & Trillas, Francesc, 2013. "Regulatory federalism and industrial policy in broadband telecommunications," Information Economics and Policy, Elsevier, vol. 25(1), pages 18-31.

    More about this item

    Keywords

    Research and Development/Tech Change/Emerging Technologies;

    JEL classification:

    • H1 - Public Economics - - Structure and Scope of Government
    • L5 - Industrial Organization - - Regulation and Industrial Policy
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance

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