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Ellig Govt Broadband 2005

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Mercatus Center
Mercatus Center
Technology
1 of 21
A Dynamic Perspective on Government Broadband Initiatives Jerry Ellig Senior Research Fellow
Municipal electricity, gas, water ,[object Object],[object Object],[object Object],[object Object]
Creative Destruction ,[object Object],[object Object]
Dynamic competition ≠ Static monopoly ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Competition = lower penetration rate ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Performance competition ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Performance – speed vs. cost ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Continuous improvement ,[object Object],[object Object],[object Object],[object Object],[object Object]
Continuous improvement
Continuous improvement
Lock-in ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Exhibit A: ISDN
ISDN speed: 128 k
On the technology menu … ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Obsolescence ,[object Object],[object Object],[object Object]
Comparative Risks 2.38 Wireless Networking 0.60 Water Utility 1.32 Telecom Services 0.65 Gas Dist. 1.75 Cable TV 0.72-0.79 Elec Utility Avg. Beta High Risk Avg. Beta Low Risk
Realistic risk premiums? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Uncertainty vs. risk ,[object Object],[object Object],[object Object],[object Object]
Can market accountability be replicated? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Beware of Geeks Bearing Gifts ,[object Object],[object Object],[object Object],[object Object]
Conclusions ,[object Object],[object Object],[object Object]

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Ellig Govt Broadband 2005