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

Author

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  • Wilson Kyle

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

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.

Suggested Citation

  • Wilson Kyle, 2023. "Investment, Subsidies, and Universal Service: Broadband Internet in the United States," Review of Network Economics, De Gruyter, vol. 22(1), pages 1-25, June.
    • Handle: RePEc:bpj:rneart:v:22:y:2023:i:1:p:1-25:n:1
    DOI: 10.1515/rne-2023-0066
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