This week, President Obama previewed an initiative to promote investment across America in municipal broadband. But some question the economic impact of such an investment. In a blog post last month, Brent Skorup reviews a Mercatus Center policy analysis of municipal broadband and explores the lack of research about the economic impact of publically-funded broadband:
“It’s remarkable how little empirical research there is on municipal broadband investment, despite years of federal data and billions of dollars in federal investment.
“In short, the economic effects of muni broadband appear to be modest.”
Skorup also notes that there is essentially zero effect on the private sector from increased municipal broadband.