The Impact of Video Service Regulation on the Construction of Broadband Networks to Low-Income Households

28 Pages Posted: 2 Nov 2005

See all articles by George S. Ford

George S. Ford

Phoenix Center for Advanced Legal & Economic Public Policy Studies

Thomas Koutsky

USAID Global Development Lab

Lawrence J. Spiwak

Phoenix Center for Advanced Legal & Economic Public Policy Studies

Date Written: September 2005

Abstract

This Policy Paper demonstrates that policies that hinder a new entrant's ability to sell video programming, such as forcing entrants to obtain a local cable franchise agreement, will strongly diminish that entrant's incentive to deploy fiber to low-income households. Using publicly-available data from the U.S. Census Bureau, we employ a simple graphical analysis and a simulation of network deployment to show that a new entrant will pass substantially more households - and in particular low-income households - if that entrant can readily offer video with voice and broadband Internet access services than it will if its ability to sell video services is sharply curtailed or delayed. In our simulation, video service takes on the role of a silver bullet - i.e., when the network firm can bundle video, the percentage of poverty and minority homes with access to the network rises significantly. Accordingly, our analysis indicates that policies that make video competition more difficult will lead to significantly lower deployment of advanced broadband networks in low-income areas than would occur with pro-entry video policies.

Keywords: franchising, digital divide, entry, fiber, build-out requirements, cable television, video

JEL Classification: K20, K23, L10, L50, L51, L52, L96, L98

Suggested Citation

Ford, George S. and Koutsky, Thomas M. and Spiwak, Lawrence J., The Impact of Video Service Regulation on the Construction of Broadband Networks to Low-Income Households (September 2005). Phoenix Center Policy Paper No. 23, Available at SSRN: https://ssrn.com/abstract=834144 or http://dx.doi.org/10.2139/ssrn.834144

George S. Ford

Phoenix Center for Advanced Legal & Economic Public Policy Studies ( email )

5335 Wisconsin Avenue, NW
Suite 440
Washington, DC 20015
United States

Thomas M. Koutsky

USAID Global Development Lab ( email )

1300 Pennsylvania Avenue NW
Washington, DC 20577
United States

Lawrence J. Spiwak (Contact Author)

Phoenix Center for Advanced Legal & Economic Public Policy Studies ( email )

5335 Wisconsin Avenue, NW
Suite 440
Washington, DC 20015
United States
202-274-0235 (Phone)
202-318-4909 (Fax)

HOME PAGE: http://www.phoenix-center.org

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
112
Abstract Views
962
rank
269,956
PlumX Metrics