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Costs and Consequences

5 Pages Posted: 13 Oct 2005  

Jerry Ellig

George Mason University - Mercatus Center


The Federal Communications Commission spent approximately $1.2 billion on telecommunications and broadband regulation in fiscal 2004. Yet the actual cost is more than 60 times that amount. In a Mercatus Center working paper released earlier this year, I assembled estimates from scholarly literature suggesting that federal telecommunications and broadband regulation generates $75 billion in wealth transfers annually, reduces consumer welfare by $25 billion annually, and reduces social welfare by $41 billion annually.

Keywords: Federal Communications Commission, FCC, telecommunications, broadband, broadband regulation, federal telecommunications regulation, telecom

JEL Classification: K2, O3, O33

Suggested Citation

Ellig, Jerry, Costs and Consequences. Regulation, Vol. 28, No. 3, pp. 40-44, Fall 2005. Available at SSRN:

Jerry Ellig (Contact Author)

George Mason University - Mercatus Center ( email )

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