The Effects of Legacy Pricing Regulation on Adoption of Broadband Service in the United States

Aron Debra J. and Ingraham Allan T.
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Aron Debra J.: Navigant Economics and Northwestern University
Ingraham Allan T.: Navigant Economics, LLC

Review of Network Economics, 2012, vol. 11, issue 4, 38

Abstract: We focus on the role of the price of basic local telephone service on broadband adoption, to determine whether and to what extent overlapping legacy telephone policies interfere with the contemporary goal of increased broadband adoption. The analysis uses nationwide quarterly household-level survey data from 54,269 households. Using a multinomial logit specification, our key result is that higher prices for basic local service are associated with higher rates of broadband adoption, controlling for broadband availability, household income, age of the head of household, size of household, population density of the household’s location, race, and other factors.

Keywords: broadband; universal service; adoption (search for similar items in EconPapers)
Date: 2012
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DOI: 10.1515/1446-9022.1304

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