Crooked Timber » » Damned lies, etc: Posted by Henry: Tyler Cowen is somewhat suspicious of an FCC Commissioner’s statistical claims about broadband penetration. Given the FCC’s past form, a general suspicion of any statistics that it trots out on broadband penetration is entirely warranted. The FCC has generated copious statistics to support their claims that there is a thriving competitive market among broadband providers. However, as the General Accounting Office points out (pdf) in polite governmental administratese, their numbers are a crock. They pump up the number of competitors in a given local market by including satellite (not a significant option for most consumers), lumping together data on specialized business services and consumer broadband, and failing to consider whether the fact that two cable companies operate in the same zipcode means that they actually compete with each other (their coverage areas may not in fact overlap). When these biases are corrected for, the GAO finds that the median number of providers for a given respondent is two, and 9% of respondents have no access to broadband at all. Given the near-total lack of resemblance between these figures and the reality that American consumers have to deal with, it’s hard to avoid the suspicion that they were generated with the purpose of muddying debate.
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