Robert Kenny Archives


Does FTTH really worth a subsidy?

Posted on December 5, 2010  /  1 Comments

Governments are subsidizing millions and billions of dollars for the deployment of fiber up to the home, aka, FTTH. Such subsidies are based on the premise that fiber to the home brings substantial externalities. But Charles Kenny and his brother Robert Kenny claim that basic broadband has contributed significantly to economic growth is decidedly mixed, and points to low returns for (expensive) superfast upgrades.  They think fiber to the businesses and government outfits make more sense than FTTH. The Kenny brothers accuse that the benefits of fiber have been considerably overstated while the other infrastructure remains ignored.