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Understanding Broadband Metrics: The Broadband Adoption Index

This paper discusses the importance of understanding broadband adoption in the context of demographic and economic factors, and emphasizes the need for better metrics to establish appropriate benchmarks.

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Understanding Broadband Metrics: The Broadband Adoption Index

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  1. Understanding Broadband Metrics: The Broadband Adoption Index PHOENIX CENTER

  2. Prior Phoenix Center Work • Phoenix Center Policy Paper No. 29, The Broadband Performance Index: A Policy-Relevant Method of Comparing Broadband Adoption Among Countries (July 2007) • http://www.phoenix-center.org/pcpp/PCPP29Final.pdf • Phoenix Center Policy Paper No. 31, The Demographic and Economic Drivers of Broadband Adoption in the United States (November 2007) • http://www.phoenix-center.org/pcpp/PCPP31Final.pdf • Phoenix Center Policy Paper No. 33, The Broadband Efficiency Index: What Really Drives Broadband Adoption Across the OECD? (May 2008) • http://www.phoenix-center.org/pcpp/PCPP33Final.pdf • Phoenix Center Policy Perspectives No. 08-03 (Second Edition), Broadband Expectations and the Convergence of Ranks (October 1, 2008) • http://www.phoenix-center.org/perspectives/Perspective08-03Final.pdf; • Phoenix Center Policy Perspectives No. 09-01, Normalizing Broadband Connections (May 12, 2009) • http://www.phoenix-center.org/perspectives/Perspective09-01Final.pdf) • Phoenix Center Policy Perspectives No.09-02, Econometric Analysis of Broadband Subscriptions: A Note on Specification (May 12, 2009) • http://www.phoenix-center.org/perspectives/Perspective09-02Final.pdf

  3. The Problems With Current Metrics • Focusing on Ranks Asks the Wrong Policy Question: • Question is NOT “Where do we Rank?” • Question should be: “Where do we rank given our demographic and economic endowments?” • Misunderstanding of Ranks Presumes a Regulatory /Market Failure When Adoption is Mostly a Demand-Side Issue • Major Methodological Issues • The “Broadband Nirvana” Problem • Real Policy Inquiry Should be “What is our Goal?” • We need better metrics that establish appropriate target benchmarks.

  4. Keeping Our Eyes on the Proverbial Prize “Fundamentally, [Phoenix Center Policy Paper No. 29 and others] demonstrate the value of understanding the broader context when making comparisons regarding broadband deployment and adoption. Indeed, the priority the Commission places on continuing to promote broadband deployment will remain, as intended by section 706, regardless of the United States’ ranking on any particular metric.” In the Matter of Inquiry Concerning the Deployment of Advanced Telecommunications Capability to All Americans in a Reasonable and Timely Fashion, and Possible Steps to Accelerate Such Deployment Pursuant to Section 706 of the Telecommunications Act of 1996, Fifth Report, FCC 08-88, __ FCC Rcd __ (rel. June 12, 2008) at ¶ 71

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