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The Digital Divide and Other Economic Considerations for Network Neutrality

Author

Listed:
  • Michelle Connolly

    (Duke University)

  • Clement Lee

    (Duke University)

  • Renhao Tan

    (Duke University)

Abstract

In its 2016 Broadband Report, the Federal Communications Commission (FCC) recognizes that a rural/urban digital divide remains prevalent—especially with respect to broadband adoption. It also highlights several policies that the FCC has undertaken purportedly to reduce the divide, including the 2015 Open Internet Order (OIO)—in which the stated intent is to enforce “network neutrality.” However, long before the OIO, studies have raised concerns that network neutrality policies will discourage investment by internet service providers (ISPs) in broadband infrastructure, to the detriment of broadband accessibility, and may increase average consumer costs—both of which would only further exacerbate the digital divide. In this paper, we provide a holistic analysis of the effects of net neutrality on the digital divide; in doing so, we draw from recent economic research on this issue. Our goal is to present a range of economic considerations that should be taken into account when evaluating the overall impact of the OIO, with particular attention to its impact on the digital divide.

Suggested Citation

  • Michelle Connolly & Clement Lee & Renhao Tan, 2017. "The Digital Divide and Other Economic Considerations for Network Neutrality," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 50(4), pages 537-554, June.
    • Handle: RePEc:kap:revind:v:50:y:2017:i:4:d:10.1007_s11151-016-9554-8
    DOI: 10.1007/s11151-016-9554-8
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    References listed on IDEAS

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    Cited by:

    1. Maiti,Dibyendu & Khari,Bhavna, 2023. "Digitalisation, Governance and the Informal Sector," IDE Discussion Papers 898, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    2. Ebru Tekin Bilbil, 2018. "Methodology for the Regulation of Over-the-top (OTT) Services: The Need of A Multi-dimensional Perspective," International Journal of Economics and Financial Issues, Econjournals, vol. 8(1), pages 101-110.
    3. Alla G. GRYAZNOVA & Valentina S. ANTONYUK & Elena L. KORNIENKO, 2019. "Regional problems in managing communications infrastructure in the digital economy," Upravlenets, Ural State University of Economics, vol. 10(4), pages 38-50, September.
    4. Hooton, Christopher Alex, 2020. "Testing the economics of the net neutrality debate," Telecommunications Policy, Elsevier, vol. 44(5).
    5. Prieger, James, 2023. "Local banking markets and barriers to entrepreneurship in minority and other areas: Does broadband availability help?," MPRA Paper 118102, University Library of Munich, Germany.
    6. Dibyendu Maiti & Akshara Awasthi, 2020. "ICT Exposure and the Level of Wellbeing and Progress: A Cross Country Analysis," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 147(1), pages 311-343, January.
    7. Prieger, James E., 2023. "Local banking markets and barriers to entrepreneurship in minority and other areas," Journal of Economics and Business, Elsevier, vol. 124(C).
    8. Lythreatis, Sophie & Singh, Sanjay Kumar & El-Kassar, Abdul-Nasser, 2022. "The digital divide: A review and future research agenda," Technological Forecasting and Social Change, Elsevier, vol. 175(C).

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    More about this item

    Keywords

    Net neutrality; Internet service providers; Content service providers; Digital divide; Telecommunications; Regulation; Open Internet Order; Welfare; FCC; Broadband;
    All these keywords.

    JEL classification:

    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
    • L98 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Government Policy
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law

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