Since announcing millions of dollars in Federal stimulus money to expand broadband in Missouri, Governor Nixon has been traveling the state lauding every local effort to expand Internet access. Recently, while in New London, Missouri, he said, “Just like Missouri in 1956 was the centerpiece for the interstate system, the Show-Me State will be the centerpiece” for broadband.
Certainly the expansion of broadband is a good thing. And Nixon has a point about how its expansion will help rural communities. The Internet Innovation Alliance (IIA) has published a list of ten ways broadband will help rural communities. Our concern is not whether more and better broadband is good, but whether the government needs to pay for it.
President Obama has made the expansion of broadband a priority of his administration--and stimulus dollars like those being funneled to Missouri have gone across the country. But the proposed merger between AT&T and T-Mobile, currently being considered by the Federal Communications Commission (FCC) may make much of the federal spending unnecessary. According to the National Journal, the Minority Media and Telecom Council reported in its letter of support to the FCC,
By easing capacity constraints, the merger will help avert the spectrum crunch – especially in very large majority-minority markets – and thus alleviate the pressures that could drive prices up, drive down minority adoption, and widen the digital divide.
In fact, the merger may free up enough resources for the company to meet almost all of the President's goals. According to one newspaper report,
AT&T says that as a result of the merger, AT&T will be able to offer broadband Internet services to 97 percent of the U.S. population, which would help the Obama administration reach its goals of making broadband available to every American.
The merger has the support of many unions, including the Communications Workers of America and the Teamsters. In fact, The Hill reported a few months ago that the merger could help swell the numbers of union members who traditionally support Democrats.
Whatever the secondary implications of the merger, it remains true that this is an example of private enterprise being able to meet important public policy goals without throwing taxpayer money at it. Conservatives have always maintained that government should not do what the private sector can do, and the AT&T/T-Mobile merger is a perfect example.