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Study: Broadband stimulus overlapped existing service

A study from a cable broadband trade group finds that 85 percent of households in three projects already have service

The story, "Study: Broadband stimulus overlapping existing service," which ran on the wire Wednesday, contains incomplete information about the study's authors. The fifth paragraph has been changed, and a new sixth paragraph inserted, in the story on the wire. The changed fifth paragraph and the new sixth paragraph read:

"While it may be too early for a comprehensive assessment of the ARRA's broadband programs, it is not too early to conclude that, at least in some cases, millions of dollars in grants and loans have been made in areas where a significant majority of households already have broadband coverage," wrote study authors Jeffrey Eisenach and Kevin Caves of Navigant Economics, an analysis firm based in Chicago. "In addition, the [RUS] program creates strong disincentives to private broadband investment in the long run, as potential future investors will discount expected returns for the possibility that the government may step in, ex post, to subsidize a competitor."

Eisenach and other Navigant analysts have written several papers opposing government involvement in the telecom sector and other industries, although Eisenach has supported some broadband deployment subsidies. Eisenach was co-founder of the Progress and Freedom Foundation, a think tank that has championed deregulation.


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