Broadband network cost recovery: a global comparison of models

Roslyn Layton

Chapter 6 in Research Handbook on Digital Regulatory Agencies, 2026, pp 82-97 from Edward Elgar Publishing

Abstract: This chapter describes the critical gaps in global broadband network investment and affordability, the emerging policy consensus to broaden the base of financial contributions beyond the telecommunications sector, and the associated regulatory response for digital regulatory agencies. It explores whether and to what degree nations consider new laws, competencies, instruments, and institutions to address these issues, whether to adapt existing regulatory agencies, create new ones, or decline to engage. The chapter contrasts concepts like broadband cost recovery and fair share and describes emergent approaches and instruments like (1) negotiated network usage fees in South Korea; (2) universal service fund assessments in the USA; (3) fair contribution mechanisms; and (4) collective bargaining as practiced with Google, Meta, and the news media industry in Australia. Nations report common challenges for broadband network investment and affordability but implement divergent solutions depending upon their respective regulatory framework. Economists have long asserted broadband as a two-sided market and the incentives for broadband and content providers (CPs) to negotiate to maximize outcomes for end users. However, the largest traffic generators (LTGs) have largely resisted negotiation and payment. Should nations want market-based solutions to broadband network investment, antitrust or other relevant authorities may need to play a role to facilitate negotiation, provide transparency, resolve bargaining asymmetries, and prohibit anti-competitive practices.

Keywords: Broadband; Network; Investment; Infrastructure; Fiber; 5G; Policy; Regulation; USF; Usage Fee; Collective Bargaining; Fair Share; Fair Contribution Mechanism; Universal Service; Reform (search for similar items in EconPapers)
Date: 2026
ISBN: 9781035330881
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