Understanding Broadband Metrics: The Broadband Adoption IndexPHOENIX CENTER

Prior Phoenix Center Work 2 P HOENIX C ENTER P OLICY P APER N O. 29, The Broadband Performance Index: A Policy-Relevant Method of Comparing Broadband Adoption Among Countries (July 2007) P HOENIX C ENTER P OLICY P APER N O. 31, The Demographic and Economic Drivers of Broadband Adoption in the United States (November 2007) P HOENIX C ENTER P OLICY P APER N O. 33, The Broadband Efficiency Index: What Really Drives Broadband Adoption Across the OECD? (May 2008) P HOENIX C ENTER P OLICY P ERSPECTIVES N O (Second Edition), Broadband Expectations and the Convergence of Ranks (October 1, 2008) P HOENIX C ENTER P OLICY P ERSPECTIVES N O , Normalizing Broadband Connections (May 12, 2009) P HOENIX C ENTER P OLICY P ERSPECTIVES N O , Econometric Analysis of Broadband Subscriptions: A Note on Specification (May 12, 2009)

The Problems With Current Metrics 3 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.

Keeping Our Eyes on the Proverbial Prize 4 Fundamentally, [P HOENIX C ENTER P OLICY P APER N O. 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, F IFTH R EPORT, FCC 08-88, __ FCC Rcd __ (rel. June 12, 2008) at ¶ 71

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