Residential broadband prices in the U.S. remained fairly stable over the past few years, while the price of business plans in the U.S. has decreased, show Scott Wallsten and James Riso in “Residential and Business Broadband Prices, Part 2: International Comparisons,” released today by the Technology Policy Institute. The authors’ analysis also shows that the price for standalone broadband in the U.S. is in the middle range of prices in OECD countries. The paper is the second part of a comprehensive study on broadband pricing.
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Press Releases
Data Cap Broadband Plans Cheaper for Most Consumers
Broadband plans with data caps are 15 – 25 percent cheaper than unlimited plans for most consumers, show Scott Wallsten and James Riso in “Residential and Business Broadband Prices, Part 1: An Empirical Analysis of Metering and Other Price Determinants,” released today by the Technology Policy Institute. The authors’ analysis also shows that broadband plans with contracts are cheaper than those without but find the cost of business plans increase with the length of the contract. The paper is part of a comprehensive broadband pricing study performed by Wallsten and Riso exploring residential and business broadband prices in the U.S. and internationally.
Research Papers
Antitrust and Vertical Integration in “New Economy” Industries
Whether the firms that supply Internet hardware and software should face restrictions on the use of their property is an important and controversial policy issue. Advocates of “net neutrality” � including President Obama and the current FCC majority�believe that owners of broadband distribution systems (hardware used to distribute Internet and video services) and producers of certain “must-have” video content should be subject to prophylactic regulation transcending present-day antitrust law enforcement. Their objective is to protect the free and open culture of the Internet from efforts to foreclose or limit competition in the provision of content, including online video services, which they see as potential competition to older video distribution methods.
Press Releases
Pre-emptive Regulation of Vertical Integration Could Harm Consumers
Pre-emptive regulation of vertical integration could harm, rather than help, consumer welfare because integration is not predictive of future market problems, states Bruce Owen in “Antitrust and Vertical Integration in ‘New Economy’ Industries” released today by the Technology Policy Institute. According to the author, “Toadying to uninformed populist fears of vertical integration between network providers and content creators by imposing investment-dampening ex ante regulatory constraints is likely to be far less useful to the public than steps to ensure effective competition among network providers.” Instead, he suggests ex post antitrust enforcement could address specific market abuses. The paper is a preliminary version prepared for the recent TPI event, “Antitrust and the Dynamics of Competition in High-Tech Industries.”