"Universal service subsidies and other state-based support schemes do not help broadband penetration rates in rural areas, according to one of the first studies of empirical results of the effectiveness of such schemes. In a report that will be seized on by critics of government subsidy and competition policies, the AEI-Brookings Joint Centre for Regulatory Studies undertook a study that mapped broadband penetration across the US measured against various federal and state-based policies governing rights-of-way, unbundling, subsidies and direct municipal network provision. The study found that universal service mechanisms and programs targeted at underserved areas do not boost broadband penetration and may even slow it, possibly by giving an artificial advantage to one type of provider or another. Likewise, tax incentives appear to have no impact. It also concluded that laws limiting municipal deployment of broadband are not statistically correlated with broadband penetration; that access to public rights-of-way by broadband providers is strongly correlated with broadband penetration; and that telecom unbundling regulations also affect penetration, but resold lines are positively correlated with it."
Commercial interest in Generative AI (GenAI) tools has reached a fever pitch, and the latest forecast from Gartner amplifies this emerging trend. Gartner predicts $644 billion in worldwide spending on GenAI in 2025, marking a dramatic 76.4 percent increase from the previous year. This surge underscores the impact GenAI will have across industries. It also requires a closer examination of the underlying dynamics of future potential. Generative AI Market Development This growth is fueled by the GenAI foundational model providers who invest billions into enhancing the size, performance, and reliability of their models. Hardware also accounts for a significant portion of this spending, with ~80 percent allocated to servers, smartphones, and PCs equipped with artificial intelligence capabilities. This highlights the critical need for computational power to support the demanding workloads of GenAI. However, Gartner also injects a dose of reality into the GenAI hype cycle. There's a dec...