Yet another "grass roots" organization (that isn't) gets plenty of press this week for a "study" claiming broadband deregulation cures unemployment. It also cures dandruff, scratchy-dry throats, incontinence, world-hunger, and leaves your mouth tasting minty fresh. -

The Citizens for a Sound Economy dubs itself a "grass roots organization" and consumer advocacy group, though it's primarily a lobbying group funded by industry and led by ex-congressman Dick Armey. It's one of a growing number of industry groups trying to impact the broadband debate while pretending to be interested in consumer welfare.

The group this week is gaining attention thanks to its internal "study", dubbed "State Economies Can Benefit from Broadband Deployment." The report (available here in pdf format) is being reconstituted and circulated in press release form from state to state, focusing on each state's fiscal problems and assuming that deregulation of the broadband industry is the obvious panacea for any and all economic concerns.

In Virginia for instance, a CSE press release notes that while West Virginia lost 2 percent of its high-tech jobs in 2002, deregulation of the broadband industry should fix such pesky unemployment problems. "widespread broadband deployment in West Virginia would increase employment in the sector by 41 percent, and spark just under $2 billion in new economic output," the study claims. "Moreover, this boost would come at no cost to West Virginia taxpayers or the federal government."

Deployments (read: deregulation) will provide the elderly greater opportunities for independent living, the report hints. Hospitals will work more effectively; jobs will be created; life - it seems - will simply be better in a myriad of ways. "Remove the regulatory barriers and West Virginia joins the high-tech revolution" suggests Dr. Wayne Brough, a CSE chief economist.

It's really quite amazing. Deregulation is going to help Rhode Island, Washington, Oregon, Pennsylvania and Utah - essentially every state in the union. Deregulation as a magic bullet for unemployment everywhere somehow escaped the greatest economic minds in the nation.

The press releases are often picked up and run as regular stories (see local Texas and Utah media).

While broadband deployments probably DO significantly impact state economies, the reports magically assume that deregulation naturally means greater broadband deployment. Those who have followed events in Pennsylvania and elsewhere should probably know better. The reality is that the Triennial review is a massive and unprecedented swath of deregulation passed earlier this year, greeted primarily by hemming and hawing from the incumbents when it came to speeding up next-gen ADSL and fiber deployments.

The CSE report isn't entirely unlike a recent study from The "New Millennium Research Council" (NMRC) and Criterion Economics, which argued that "significant broadband investment" could result in 1.2 million new jobs and an increase in gross domestic product to the tune of $179.7 billion by 2021. Again, these fantastic financial rewards are all available if incumbent providers are freed of pesky regulation.

The New Millennium Research Council is an 'independent' (a word used frequently in their self-description) offshoot of Issue Dynamics. Issue Dynamics, according to their website, is a "consulting firm specializing in public affairs and relationship-management services". The company's list of clients is lengthy, but their largest contributors are SBC and Verizon. The group has been under heavy fire recently for working behind the scenes seemingly in support of grass-roots activism, while really serving the call of their most powerful corporate clients.

This really is not to suggest that regulation is the answer, nor is there any illusion that these tactics aren't also used by bell DSL competitors and the cable industry to help keep the bells regulated. A good place to start if you're eager to separate truth from fiction is this guide developed by PRwatch (they focus on illuminating such organizations), as well as their background information (though outdated) on CSE.