Home Broadband Should be Funded the Way Any Business Is

The debate over ffunding of home broadband networks by third parties essentially boils down to this argument by internet service providers: our customers use too much data and instead of charging them more, we will tax third parties to make up the difference. 

Some ISPs argue that half or more of the total data consumed by their own customers is because their customers are using a few popular hyperscaler apps. The demand, however, is created by ISP customers. 

If homeowners consume electricity, do we think to tax manufacturers of kitchen appliances or furnaces? Energy customers create the demand and cause the consumption.

Electrical suppliers have the right, perhaps the duty, to structure their tariffs in ways that promote responsible consumption. So do water suppliers or natural gas suppliers or home heating oil suppliers. 

Consumers, in turn, have the right (and again, perhaps a moral duty) to buy appliances that are more energy efficient. Manufacturers have similar pressures and opportunities. 

Governments, policymakers, public policy advocates and suppliers have the right to advocate for any number of funding mechanisms. That is why governments often offer financial inducements for building access networks, require physical facilities sharing and access or offer recurring cost subsidies to low-income consumers. 

Is it really asking too much of ISPs that they learn to structure their business models to support and shape their customers’ behavior?