Investment, Subsidies, and Universal Service: Broadband Internet in the United States

Wilson Kyle ()
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Wilson Kyle: Department of Economics, Pomona College, 425 N. College Ave., 91711, Claremont, CA, USA

Review of Network Economics, 2023, vol. 22, issue 1, 1-25

Abstract: Access to the internet is critical for participating in modern society, and yet many Americans lack access to high-speed internet. A key objective of U.S. telecommunications policy is to promote policies that advance the availability of quality telecommunications services, with the goal of universal service. I develop a dynamic model of internet service providers’ entry, exit, and upgrade decisions. Estimating this model reveals the determinants of profits and variation in firms’ costs. I then use this information to simulate a variety of subsidy policies, and explore how the use of targeted subsidies can improve high-speed internet access.

Keywords: broadband; internet; subsidy; dynamics (search for similar items in EconPapers)
Date: 2023
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DOI: 10.1515/rne-2023-0066

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