Despite the occasional claim by the Bush administration that the US has a broadband policy, the truth is that the US only has a broadband policy if you consider "doing nothing" to be a policy. When you're convinced that any form of government regulation, policy-setting, or program only mucks up the market, this makes sense; if you look at other countries and find that nations without a plan "will fare worse than if they had smart broadband policies," the continued refusal to do anything meaningful looks willfully ignorant.

A major new report on broadband policy from the nonpartisan Information Technology & Innovation Foundation (ITIF) suggests that government action alone won't produce a broadband panacea, but that leadership from the top and a carefully-targeted set of policies can do plenty of good. After doing detailed case studies of nine countries, the report concluded that "those that make broadband a priority, coordinate across agencies, put real resources behind the strategy, and promote both supply and demand" do better than those which do nothing.

Critics of the current US approach to spurring broadband deployment and adoption point out that the country has been falling on most broadband metrics throughout the decade. One of the most reliable, that issued by the OECD, shows the US falling from 4th place in 2001 to 15th place in 2007. While this ranking in particular has come under criticism from staunchly pro-market groups, the ITIF's analysis shows that these numbers are the most accurate we have. According to an ITIF analysis of various OECD surveys, the US is in 15th place worldwide and it lags numerous other countries in price, speed, and availability—a trifecta of lost opportunities.

With an average broadband speed of 4.9Mbps, the US is being Chariots of Fire-d by South Korea (49.5Mbps), Japan (63.6Mbps), Finland (21.7Mbps), Sweden (16.8Mbps), and France (17.6Mbps), among others. Not only that, but the price paid per megabyte in the US ($2.83) is substantially higher than those countries, all of which come in at less than $0.50 per megabyte.

The ITIF warns against simply implementing the policies that have worked for other countries, however, and it notes that a good percentage of the difference can be chalked up to non-policy factors like density. For instance, more than half of all South Koreans lived in apartment buildings that are much easier to wire with fiber connections than are the sprawling American suburbs. The report calls for going beyond the "either-or" shouting matches between the "market fundamentalists" and the "digital populists" to embrace a set of pragmatic principles that should help the US improve its ranking.

These include more favorable tax policies that encourage broadband investment; making more spectrum available for broadband, including the white spaces; extending the Universal Service Fund program to cover not just rural telephone service but rural broadband) supporting state-level broadband initiatives like Connect Kentucky; and keeping broadband usage free from all taxes.

Several of these initiatives have been proven in countries like Sweden, which has pumped $800 million into subsidies for broadband deployment; for a country the size of the US, that would come to some $30 billion. Needless to say, no such major infrastructure investment has been forthcoming from the federal government. But Sweden has also targeted the demand side of the equation, subsidizing personal computers that businesses purchase for employees' home use. This kind of a program is also important in the US, where broadband availability runs ahead of actual broadband usage.

And for those who wonder exactly how other countries have implemented their policies, the report concludes with detailed case studies of the countries in question. While lengthy, the entire thing makes good reading for anyone interested in broadband policy questions. A choice to make no changes to the current setup is a choice to leave billions of dollars on the table.