[January 29, 2009]

"BEGGING for government help would have made you a pariah in most parts of the high-tech industry a few months ago. But these days state aid, and how to dole it out, are nearly as hotly debated in online hangouts as cloud computing or Steve Jobs’s health.

...

Many stimulus plans appear to be long on promoting broadband and short on saying how it would be used, says Mr Wunsch-Vincent. There are also many unanswered questions over how to dole out the money. Should the subsidies take the form of tax breaks or targeted grants? Should they go to existing telecoms operators or be directed towards new entrants? And should recipients be forced to open up subsidised networks to rivals?

Perhaps the biggest risk of all these broadband plans is that incumbents will exploit the crisis to gain regulatory concessions limiting competition and open access to their networks in exchange for promises to invest. This could even help recreate the telecoms monopolies of old. But if this recession has proved anything, it is that what goes around, comes around."

— Paved with good intentions in The Economist Magazine