ITIF Report Draws Fire Over Claims Against Public Networks

WASHINGTON, Dec. 3, 2024 – The Information Technology & Innovation Foundation released a report Monday claiming that government-owned broadband networks are inefficient and unsustainable, drawing sharp criticism from a prominent public broadband advocate. 

“In most cases, local governments have neither the competence nor the economies of scale to deliver broadband as well as private ISPs,” the report, authored by ITIF research assistant Ellis Scherer, stated. 

The report advocated for stricter oversight of public networks’ participation in federally funded broadband programs, particularly the $42.45 billion Broadband Equity, Access, and Deployment initiative.

By analyzing the financial and operational data of 20 government-owned networks, Scherer concluded that they “waste societal resources, create unfair competition, and [are] frequently unsustainable in the long run.” 

However, the report admits that its sample size was “too small for the data to represent all U.S. [government-owned broadband networks] reliably,” a concession seized upon by critics. About 400 municipal broadband networks exist and serve over 700 communities nationwide, according to research from the Institute for Local Self-Reliance’s Community Broadband Networks Initiative.

Advocates argued that the ITIF report failed to capture the diversity and successes of these local initiatives.

Gigi Sohn, executive director of the American Association for Public Broadband, dismissed the ITIF report as “laughable,” arguing that it ignores the realities faced by millions of Americans who remain disconnected or underserved. 

“Community broadband networks have arisen because big cable and telecom companies refuse to serve some communities with affordable and robust broadband,” Sohn said. “The most laughable conclusion in this paper is that '[t]here is no gaping market failure in need of repair' by community broadband networks.”

Sohn also highlighted the irony of ITIF’s stance, pointing out that private ISPs regularly benefit from public funding and regulatory privileges.

“ITIF conveniently forgets that big cable and telecom companies have benefited to the tune of tens of billions of dollars from federal and state coffers,” she added. “To suggest incumbent ISPs operate in a purely 'market-driven' world is to ignore reality.”

A non-profit based in Washington, ITIF says its mission is "to formulate, evaluate, and promote policy solutions that accelerate innovation and boost productivity to spur growth, opportunity, and progress."

The ITIF report recommends the incoming Trump administration adopt policies favoring private ISPs over community broadband, citing societal efficiency. 

Advocates like Sohn, however, argued that such a move would undermine local autonomy and further entrench the dominance of corporate ISPs.

“AAPB urges [the Trump] administration to decline ITIF’s pleas and allow communities to decide their own broadband futures,” she said.