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The Effect of Regulation on Broadband Markets: Evaluating the Empirical Evidence in the FCC’s 2015 “Open Internet” Order

Author

Listed:
  • Thomas W. Hazlett

    (Clemson University)

  • Joshua D. Wright

    (George Mason University)

Abstract

In 2015, the Federal Communications Commission (FCC) imposed common carriage regulation—so-called Title II requirements—on previously unregulated broadband Internet service providers. The regime shift was premised on the FCC’s findings that such rules had demonstrably yielded economic gains. This paper evaluates the FCC’s empirical arguments and finds them uncompelling. Adjustments for inflation or general economic trends eliminate the effects cited by the FCC. Moreover, contrary to the Commission’s assessment, mobile services and broadband markets have shown notable growth in response to deregulatory events that reduce Title II requirements.

Suggested Citation

  • Thomas W. Hazlett & Joshua D. Wright, 2017. "The Effect of Regulation on Broadband Markets: Evaluating the Empirical Evidence in the FCC’s 2015 “Open Internet” Order," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 50(4), pages 487-507, June.
  • Handle: RePEc:kap:revind:v:50:y:2017:i:4:d:10.1007_s11151-016-9556-6
    DOI: 10.1007/s11151-016-9556-6
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    References listed on IDEAS

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    Cited by:

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    2. Hooton, Christopher Alex, 2020. "Testing the economics of the net neutrality debate," Telecommunications Policy, Elsevier, vol. 44(5).
    3. Briglauer, Wolfgang & Cambini, Carlo & Gugler, Klaus & Stocker, Volker, 2021. "Net Neutrality and High Speed Broadband Networks: Evidence from OECD Countries," 23rd ITS Biennial Conference, Online Conference / Gothenburg 2021. Digital societies and industrial transformations: Policies, markets, and technologies in a post-Covid world 238012, International Telecommunications Society (ITS).
    4. Glass, Victor & Tardiff, Timothy, 2019. "A new direction for the net neutrality debate," Telecommunications Policy, Elsevier, vol. 43(3), pages 199-212.
    5. Jerry Ellig & Paul LaFontaine & Wayne Leighton & Eric Ralph & Sean Sullivan, 2018. "Economics at the FCC, 2017–2018: Internet Freedom, International Broadband Pricing Comparisons, and a New Office of Economics and Analytics," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 53(4), pages 681-707, December.
    6. Carlo Cambini & Lorien Sabatino & Sarah Zaccagni, 2021. "The Faster the Better? The Effect of Ultra-Fast Broadband on Students’ Performance," CEBI working paper series 21-14, University of Copenhagen. Department of Economics. The Center for Economic Behavior and Inequality (CEBI).

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