November 25, 2014
Bret Swanson of Entropy Economics has put together a new study for the American Enterprise Institute showing that despite claims from those who wish for the government to heavily regulate broadband providers, the U.S. broadband market is actually quite healthy. The full study is definitely worth digging into, but below are some of Swanson’s key points:
• Internet traffic volume is an important indicator of broadband health, as it encapsulates and distills the most important broadband factors, such as access, coverage, speed, price, and content availability.
• US Internet traffic is two to three times higher than that of most advanced nations, and the United States generates more Internet traffic per capita and per Internet user than any major nation except for South Korea.
• The US model of broadband investment and innovation—which operates in an environment that is largely free from government interference—has been a dramatic success.
• Overturning this successful policy by imposing heavy regulation on the Internet puts one of America’s most vital industries at risk.
You can read Swanson’s full report, titled “Internet traffic as a basic measure of broadband health,” over at the American Enterprise Institute.