Study Finds Reducing Carrier of Last Resort Burden Would Encourage Investment in Broadband Infrastructure, Create Jobs

Study Finds Reducing Carrier of Last Resort Burden Would Encourage Investment in Broadband Infrastructure, Create Jobs

Findings reveal evidence of a robust and competitive telephone service market in Ohio

(Columbus) – A new study reveals that investment in broadband infrastructure would be encouraged by reducing the carrier of last resort (COLR) burden in Ohio, resulting in the saving or creation of thousands of jobs.

The report, titled, “Incentive to Invest in Ohio Broadband & The Carrier of Last Resort Obligation,” was conducted by Drs. Jack Kleinhenz and Russ Smith, economists at the firm of Kleinhenz & Associates in Cleveland. The study was sponsored by Technology for Ohio’s Tomorrow, a non-profit organization that advocates for public policies that inspire and encourage innovation in technology while informing and educating technology consumers about legislative and regulatory issues that impact their lives.

“Ohio’s current telecom laws reflect a time when everyone used rotary phones, and dial-up internet was only beginning to make its way into peoples’ homes,” said John McClelland, Executive Director of Technology for Ohio’s Tomorrow. “Modernizing these laws will allow companies to invest in the technologies of the future, which will help Ohio compete in the global economy and benefit Ohioans for years to come.”

The study reveals a robust telephone service market exists, with over 800 companies selling a range of voice and data services to Ohio residences and businesses. With the strong demand for broadband, development of a broadband infrastructure is believed to be of critical importance to economic growth.

In fact, the study found that every $1 million invested in broadband infrastructure creates or saves between 18 and 50 jobs. Based on current investment numbers, as many as 30,000 Ohio jobs are the result of broadband investment each year.

Authors of the study also found that COLR obligations are outdated, noting that “the original market conditions that existed when COLR regulations were imposed no longer exist.” Additionally, the authors found that conditions are imposed upon select market participants who aren’t guaranteed to see the benefit.

Technology for Ohio’s Tomorrow is the Ohio-based project of Midwest Consumers for Choice and Competition (MCCC), a non-profit organization of individual consumers interested in technology, broadband, and telecommunication issues with state projects throughout the Midwest region. MCCC promotes and supports access and broadband deployment, as well as innovative technology and economic job growth in the Midwest. Technology for Ohio’s Tomorrow (TOT) is a state project of Midwest Consumers for Choice and Competition operating in Ohio.

Editor’s note: Please find complete study attached for your convenience.

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