The Information Technology and Innovation Foundation recently published a new study on why the US is falling behind international counterparts, as indicated by the OECD ranking report, where the US ranks 15th for broadband penetration.

Here’s their list of recommendations – as noted in their executive summary:
To encourage the development of broadband infrastructure (supply) in the United States, we recommend that U.S. policymakers take the following steps:

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   1. Enact more favorable tax policies to encourage investment in broadband networks, such as accelerated depreciation and exempting broadband services from federal, state, and local taxation.
   2. Continue to make more spectrum, including “white spaces,” available for next-generation wireless data networks.
   3. Expand the Department of Agriculture’s Rural Utilities Service Broadband Program and target the program to places that currently do not have non-satellite broadband available.
   4. Reform the federal Universal Service Fund program to extend support for rural broadband to all carriers, and consider providing the funding through a reverse auction mechanism.
   5. Fund a national program to co-fund state-level broadband support programs, such as Connect Kentucky or North Carolina e-NC Authority.
   6. Promote the widespread use of a national, user-generated, Internet-based broadband mapping system that would track location, speed, and price of broadband.
   7. State and local governments should take action to make it easier for providers to deploy broadband services, including making it easier to access rights-of-way.

To encourage the growth of consumer demand for broadband, we recommend that U.S. policymakers take these steps:

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   1. Support initiatives around the nation to encourage broadband usage and digital literacy.
   2. Fund a revitalized Technology Opportunities Program, with a particular focus on the development of nationally scalable Web-based projects that address particular social needs, including law enforcement, health care, education, and access for persons with disabilities.
   3. Exempt broadband Internet access from federal, state, and local taxes.
   4. Support new applications, including putting more public content online, improving e-government, and supporting telework, telemedicine, and online learning programs.
      By adopting these recommendations, U.S. policymakers would give broadband providers the economic incentives to invest in broadband infrastructure both in rural and urban areas of the country and give consumers the incentives to subscribe to broadband, particularly higher speed broadband.

I have to say that I *love* the second part of the list. I just think the best way to increase broadband penetration is to increase demand. Yes we still would certainly need the incentives to build out to more remote areas – but with customers on the other end that incentive might only be necessary for the build-out, not the operation and maintenance.

That’s not to say that I don’t think policy is valuable too. The report indicates that nations that make broadband a priority and put resources into broadband fare better than those who don’t. It seems obvious but a report never hurts to punctuate the point.

The reports also goes on to suggest that it makes sense to see what other countries of done, consider options that have worked in statewide programs (naming Kentucky and North Carolina) but to realize that one size does not fit all.