Phoenix Center For Advanced Legal & Economic Public Policy Studies
Whoops! Berkman Study Shows “Open Access” Reduces Broadband Consumption
George S. Ford, PhD | November 12, 2009

You can find a PDF copy of the paper in its entirety here.

George S. Ford analyzes the Berkman Study which was created by Harvard University to act as a “comprehensive assessment” of literature on broadband deployment and act to “lay the foundation for enlightened decisionmaking.”

Ford has conducted a study of a study in his paper in which he finds some interesting data:

• The Berkman Study incorrectly created their own economic model and then misinterpreted the resulting data.
• Berkman uses a basic supply and demand equation, Qd =f(P, Y, A, E, S, W) and Qs = f(P, U, G, C), resulting in Qd = Qs.  But in doing so they estimated both equations by Ordinary Least Squares regression which produces biased results.
• Berkman purports that its results show that “open access” stimulates broadband consumption.  Ford however argues that a correct reading shows that unbundling decreases broadband consumption based on the Berkman studies own data.
• Ford is not however not claiming that unbundling reduces competition. He simply points out that this is what the Berkman Study actually shows, and that the data was misinterpreted, and the study faulty from the outset.

Ford points out that FCC Chairman Julius Genachowski’s comments regarding Berkman were to find unbiased data on the subject matter so that the FCC would be able to make well informed decisions.  Ford contends that this study does not provide the tools necessary for sound decision making, and that how the FCC treats Berkman will be a “bellwether” of how we can expect the commission to operate in the future.

You can find a PDF copy of the paper in its entirety here.