The FCC's visible hand

[Commentary] By the Federal Communications Commission's own account, broadband use in the United States has exploded over the past decade: "Fueled primarily by private sector investment and innovation, the American broadband ecosystem has evolved rapidly. The number of Americans who have broadband at home has grown from eight million in 2000 to nearly 200 million last year."

So it is curious that the FCC's newly released National Broadband Plan faults the market for failing to "bring the power and promise of broadband to us all" -- in reality, some 7 million households unable to get broadband because it is not offered in their areas. Such an assessment -- and the call for government intervention to subsidize service for rural or poor communities -- is premature, at best. To urge government caution is not the same as favoring complete inaction -- and the FCC plan is longer on aspiration than specific policy intentions, so in many areas it's hard to be sure what the agency has in mind. Certainly the FCC is right to monitor information about rates and accessibility and to explore how to make more efficient use of the airwaves. Government subsidies may become essential to fulfill public purposes, such as providing broadband to rural schools. It is useful to continue to mark America's standing in these matters in comparison to that of other nations. But it is hard to see in this field the signs of gross market failure.