Broadband Study Says “Open Access” Better For Consumer
The FCC released findings from a study that observed broadband practices. The study, commissioned by the U.S. Federal Communication Commission, revealed that open access policies have helped other leading industrialized nations develop more competitive broadband markets.
According to the FCC, gaining open access to carrier facilities makes for a much more robust competitive market. A more competitive market can offer lower cost for services due to competitive pricing among the leading Internet service providers.
The 232 page study, written by the Harvard University, Berkman Center for Internet and Society, says, “the lowest prices and highest speeds are almost always offered by firms in markets where, in addition to an incumbent telephone company and a cable company, there are also competitors who entered the market and built their presence through the use of open access facilities”.
Open access facilities are facilities originally owned by a telecommunication company that is required to provide access to their facilities to competing businesses that do not already own physical infrastructure. In America, cable operators have not been required to provide access to their facilities for their competitors but local telephone providers who own physical infrastructure have been required to allow access to their infrastructure for their competition. The open access debate declined in 2002 when the FCC moved away from open access enforcement for Broadband.
The task force, appointed by the FCC, has announced estimates for wireless and land-line infrastructure for broadband which it estimates will cost from $20 billion to $350 billion. The final estimates are dependent upon the speeds that are offered.
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