Question

A columnist for the Wall Street Journal argued that highspeed Internet connections are now a public good: "We're going to have to transition to the building of public infrastructure and away from the revolution being the domain of private enterprise. It's not enough for Google to roll out high- speed fiber to a handful of cities." a. In what ways is the infrastructure for high-speed Internet connections like automobile highways? In what ways is it different from highways? b. As of 2017 , private firms have constructed most of the infrastructure for high-speed Internet connections,while governments have constructed most highways. Is it still possible that the infrastructure for high-speed Internet connections is a public good despite this fact? Briefly explain. c. Do you agree with the columnist that we should think of the infrastructure for high-speed Internet connections as being like a public good? Is there any information you would need to know before deciding?

Short answer

Infrastructure for high-speed internet and highways are similar as they both facilitate communication and commerce, but differ in aspects like cost and exclusivity. Despite majorly being constructed by private firms, internet infrastructure can still be considered a public good if it is non-excludable and non-rivalrous. Agreeing with the columnist's viewpoint would require deeper analysis of the cost, benefits, and potential for market failure of treating high-speed internet infrastructure as a public good.

Step-by-step solution

Comparing Infrastructure and Highways

First, consider the ways in which the internet's infrastructure and highways are similar and dissimilar. Both infrastructures serve as crucial veins of communication and commerce for society, facilitating trade, education, and a host of other activities. However, they differ in terms of cost and exclusivity. Internet infrastructure, unlike highways, can serve an infinite number of users simultaneously without the occurrence of a traffic jam.

Infrastructure as Public Goods

When evaluating whether the infrastructure for high-speed internet connections is a public good, consider the two main characteristics of a public good: non-excludability and non-rivalry. Non-excludability means that once a good is provided, no one can be excluded from using it. Non-rivalry means that when one person uses the good, it does not reduce its availability to others. Based on these definitions, it's not the who constructs the infrastructure but rather the nature of the good itself that qualifies it as public or private. It's possible for it to be a public good constructed by a private firm if it's non-excludable and non-rivalrous.

Evaluate the Columnist's Opinion

Finally, assess the columnist's statement. While high-speed internet infrastructure indeed shares many similarities with a public good, one must analyze several factors, such as cost, benefits, and the potential for market failure, before concluding that it should be considered as such. Thus, agreeing with the columnist's perspective would require more extensive information.

Key concepts

High-speed Internet

High-speed internet has become a vital part of our daily lives, much like water or electricity. It's what allows us to communicate efficiently, access a wide range of educational resources, and support numerous economic activities. Just like a busy highway that helps cars move from one place to another, internet connections serve as digital pathways for information. However, unlike highways, the internet doesn’t get clogged with data as physical roadways do with cars. This unique feature allows thousands of users to connect and access vast amounts of data simultaneously without significantly affecting the connection speed for others.

While physical roads are limited by space and can be prone to jams, high-speed internet facilitates smooth, limitless information flow, making it inherently different from traditional infrastructure models.

Infrastructure

Infrastructure refers to the fundamental facilities and systems serving a country, city, or area, including its services and facilities necessary for its economy to function. When we talk about internet infrastructure, we're referring to the hardware, software, and systems that make up the internet. This includes cables, routers, data centers, and more.

Just as physical roads and highways create a network that connects users from place to place, internet infrastructure connects users from around the world. This connectivity is crucial for modern economies and societies, as it supports not just communication, but also innovation and development. Although governments have traditionally been responsible for building physical infrastructures like roads, private companies have played a significant role in developing internet infrastructure. This development suggests a shift, recognizing that while roads are often managed as public goods, internet infrastructure can straddle both private and public sectors.

Non-excludability

Non-excludability is a key feature of public goods, signifying that once a good is provided, it's impossible or impractical to prevent anyone from using it. In the context of high-speed internet, this means that once the network is established in a community, it is difficult to exclude people within that area from access. This characteristic can contribute to considering internet infrastructure as a public good.

However, in practice, internet access is often limited by subscriptions or regional availability, leading to a form of excludability. This duality raises the question of whether internet infrastructure should be made more universally accessible, moving towards the model of a true public good. Understanding non-excludability helps us recognize the challenges and opportunities regarding accessibility and equity in internet access.

Non-rivalry

Non-rivalry means that one person's use of a good does not diminish the ability of others to use it too. High-speed internet is often considered a non-rivalrous good because multiple users can access the internet without restricting others' access. In essence, thousands of people can stream, download, and use online resources simultaneously.

Traditional infrastructure like roads face rivalry – as more cars use a road, the more congested it becomes, leading to traffic jams and delays. Internet infrastructure, however, allows for concurrent use without such direct conflict. This characteristic underscores the argument for considering high-speed internet as a public good since it defies the typical competition seen with many other kinds of infrastructure.

• Additional users generally do not limit the quality of the connection for others.
• This characteristic supports the idea that the internet can function efficiently for large communities.

Understanding non-rivalry helps illustrate why high-speed internet can offer more community-wide benefits compared to other forms of infrastructure.