Internet Exchange (IX) Act

Economic Questions:

• What are the costs and benefits of subsidizing IX points in rural areas? For example, has anyone calculated the cost per millisecond in reduced latency and asked whether the benefits are worth that improvement?

Summary: Introduced by Sens. Baldwin (D-WI) and Blackburn (R-TN). Internet Exchanges (IX) are physical locations where data is stored and cloud computing processed. By locating close to populations, they reduce latency. Major IX points are concentrated in cities and coastlines. The IX Act aims to expand these exchange points into rural areas, providing rural customers with better connections and faster speeds. Two methods are proposed to improve exchange point access for rural customers:

• Grants administered by NTIA to build new IX facilities where none exist OR help an existing one expand if it is in a primary location to serve rural customers.

• Provide funds to the E-rate (schools and libraries) and Telehealth programs to contract with a provider and get a connection to an IX facility. Funds can also be used to pay the cost of maintaining a presence at an IX facility.

Supporters say that this helps bolster connections for rural customers, and improves the quality of healthcare and education.

References and Further Reading:

Senators Blackburn, Baldwin Introduce Internet Exchange Act

WASHINGTON, D.C. - Today, Senators Marsha Blackburn (R-Tenn.) and Tammy Baldwin (D-Wis.) introduced S. 1166, the Internet Exchange (IX) Act, which will help to improve internet access for consumers, especially those in rural areas. "You can't have a 21st century education, 21st century healthcare, or a 21st century business without access to 21st century internet," said Senator Blackburn.

Bipartisan bill would bolster internet exchanges | Superior Telegram

Bipartisan legislation to improve internet access for consumers, especially those in rural areas, was introduced by U.S. Sens Tammy Baldwin, D-Wis., and Marsha Blackburn, R-Tenn.