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[Below is the Introduction and Summary to this latest FSF Perspectives. A PDF version of the complete Perspectives is here.]

 

As a keynote speaker at #FSFConf14, the Free State Foundation’s Fourteenth Annual Policy Conference, the National Telecommunications and Information Administration's (NTIA) Russell Hanser gave an important speech. We are very grateful for his participation. During his remarks, a video of which is available here, Mr. Hanser, NTIA's Director of Communications Policy Initiatives, discussed a number of topics, including the impending release ("in just over one week") of Notices of Funding Opportunity (NOFO) for the $65 billion in broadband funding programs established by the Infrastructure Investment and Jobs Act (IIJA).

 

As Mr. Hanser promised, three NOFOs were released on Friday, May 13, 2022. Of particular interest are the "rules of the road" for the $42.45 billion Broadband Equity, Access, and Deployment (BEAD) Program. (For the reaction of my colleague Seth Cooper, Free State Foundation Director of Policy Studies and a Senior Fellow, please click here.) Specifically, the misguided decision by NTIA to prioritize end-to-end fiber networks – to quote the specific language in the NOFO, "projects designed to provide fiber connectivity directly to the end user" – over those utilizing other viable distribution technologies: cable broadband, 5G, fixed wireless, satellite, and so on.

In some cases, the deployment of end-to-end fiber networks, which is a relatively capital-intensive and time-consuming proposition, does make economic sense. Indeed, reports of telecommunications providers betting substantial sums on fiber builds appear with increasing frequency in the trade press. But in other cases – particularly involving low-population-density areas and those saddled with extreme geographic challenges – the cost/value proposition tilts away from fiber and toward other more cost-effective technological distribution platforms.

 

In the competitive broadband marketplace, financial considerations drive providers to the most efficient technological solutions. Where government subsidies are involved, however, there is a substantial risk that they will be wasted on "gold-plated" solutions that do not give sufficient weight to the price tag and/or likely return on investment. And, importantly, when taxpayer dollars are not allocated to the most cost-effective options, then consumer welfare suffers because there are simply less dollars available to be used.

 

Fortunately, Mr. Hanser made three points during his speech that serve as a basis for optimism here. One, that "we are working hard to harness competitive market forces." Two, that "we look forward to hearing from you." And three, that "we expect that the NOFO will say a lot of things …, but it will only be the tip of the iceberg on some issues."

 

Accordingly, the purpose of this Perspectives from FSF Scholars is to urge NTIA to make clear, via statutorily required "technical assistance" (that is, guidance and clarification), that its stated preference for end-to-end fiber networks is by no means absolute, but rather an indication that fiber deployment will be considered among many factors – including overall cost, time to build, expected rate of return, and the relative efficiency of alternative solutions.

 

* Andrew Long is a Senior Fellow of the Free State Foundation, an independent, nonpartisan free market-oriented think tank located in Rockville, Maryland. The views expressed in this Perspectives do not necessarily reflect the views of others on the staff of the Free State Foundation or those affiliated with it.

 

Read the complete Perspectives here.

Click HERE to watch the YouTube video of the Welcome and Introduction by Randolph May, President, The Free State Foundation, and a Fireside Chat – The View from the FCC, with Moderator: Seth Cooper, Director of Policy Studies and Senior Fellow, The Free State Foundation, and Panelists: Brendan Carr – Commissioner, Federal Communications Commission; Nathan Simington – Commissioner, Federal Communications Commission; and Mignon Clyburn – Former Commissioner and Acting Chairwoman, Federal Communications Commission.

Click HERE to watch the YouTube video of the Fireside Chat – The “Hottest Topics” in Communications and Internet Policy, with Moderator: Randolph May, President, The Free State Foundation, and Panelists: Meredith Baker – President and CEO, CTIA – The Wireless Association; Chris Lewis – President and CEO, Public Knowledge; Michael Powell – President and CEO, NCTA – The Internet & Television Association; and Jonathan Spalter – President and CEO,USTelecom – The Broadband Association.

Click HERE to watch the YouTube video of the Keynote Address by Russell Hanser, Director, Communications Policy Initiatives, National Telecommunications and Information Administration, with an Introduction by Bryan Tramont, Managing Partner, Wilkinson, Barker, Knauer, LLP, and Reactions by Robert Branson, President and CEO, Multicultural Media, Telecom and Internet Council.

Click HERE to watch the YouTube video of the Fireside Chat – The View from the FTC, with Moderator: Maureen Ohlhausen – Former Acting Chairman and Commissioner, Federal Trade Commission, and Panelists: Christine Wilson – Commissioner, Federal Trade Commission, and Noah Phillips – Commissioner, Federal Trade Commission.

For now, we've changed the cover image on the Free State Foundation's Twitter and Facebook pages to the one below to express our support for the people of Ukraine in their brave fight to preserve their freedom and sovereignty. First things first.

In case you missed it…please see:

Videos of the Free State Foundation's Events in 2021 on FSF's YouTube Channel

FCC Chairman Ajit Pai's Farewell Address on January 8 – Click Here

Ilya Shapiro, Director of Cato Institute's Robert A. Levy Center for Constitutional Studies on January 22 – Click Here

FCC Commissioner Nathan Simington's Maiden Address on February 16 – Click Here

Fireside Chat with FTC Commissioners Noah Phillips and Christine Wilson on March 19 – Click Here

Fireside Chat with FCC Commissioner Brendan Carr on March 23 – Click Here

"Hot Topics in Communications Policy" Panel on April 27 – Click Here

Congressman Bob Latta's Keynote Speech on May 27 – Click Here

The Free State Foundation's book, A Reader on Net Neutrality and Restoring Internet Freedom, by Randolph May and Seth Cooper, is available from Amazon here. Read more about the book here.

By the way, when you are shopping for books or other items on Amazon, please login through AmazonSmile here. If you do so, Amazon will donate 0.5% of the price of your purchases to the Free State Foundation. We know that it is a small donation, but every little bit helps to support our work!