Friday, February 19, 2010

Wholesale regulation stimulates investment

Here's a report, "Regulation, Investment and Jobs", from Economics and Technology Inc. (ETI), sponsored by PAETEC, Cbeyond (see this cute little post), Covad Communications, Integra Telecom, tw telecom and Public Knowledge, submitted to the FCC. There is a similar report from ETI for MTS Allstream. They kind of support the findings of the Berkman report: "elimination of many vital wholesale regulations of the Bell Operating Companies resulted in less investment and significant job reductions in the telecommunications sector over the past several years." Re-introducing wholesale would contribute "a conservative estimate of a $66 billion improvement in the Gross Domestic Product and the creation of 234,000 jobs in the US economy."

"Similar to the recent announcement by Google that high speed fiber networks that it proposes to trial in a few communities on an open access basis to promote a choice of service providers for end users, regulatory policies should promote open access for broadband networks."

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