Phoenix Center Challenges Brattle Group’s Fiber Value Impact

WASHINGTON, March 25, 2025 – A new analysis from the Phoenix Center for Advanced Legal & Economic Public Policy Studies is raising concerns over a study claiming that nationwide fiber broadband deployment could generate $3.2 trillion in economic benefits.

The original study, conducted by The Brattle Group and commissioned by the Fiber Broadband Association and Frontier Communications, was released in November 2024. It estimated that expanding fiber-optic access to the remaining 56 million U.S. households without it would increase housing values by $1.64 trillion, boost household income by $1.6 trillion, and create 380,000 new jobs.

“Investing in fiber is key to unlocking substantial economic and social benefits,” said Gary Bolton, CEO of the Fiber Broadband Association. “With over $100 billion being committed to broadband expansion through initiatives like ARPA and BEAD, focusing on fiber deployment will really drive economic growth, enhance community well-being and set us up for long-term success.”

In response, Phoenix Center Chief Economist Dr. George S. Ford published a report Monday questioning the methodology used in the Brattle study. 

“The Brattle Group study provides scarcely any description of the data used in the analysis,” Ford said. 

He argued that the report lacks transparency in its data sources and relies on an inadequately specified “Differences-in-Differences regression model.” Ford suggested that these issues could lead to flawed conclusions about fiber’s economic impact.

“Subsidized broadband deployment should rely on the most efficient approaches,” Ford said. “Fiber is simply too costly in many rural areas and there are excellent options for broadband delivery that cost far less.”

Ford’s findings “suggest that, for now, policymakers should explore diverse approaches beyond fiber networks for delivering broadband to Americans, avoiding subsidizing fiber when modern cable and other networks are available, including the potential of next-generation satellite technologies,” Phoenix said in a press release.

Neither FBA nor Brattle responded to emails seeking comment.