The Burden of Network Neutrality Mandates on Rural Broadband Deployment

Phoenix Center Policy Paper No. 25

20 Pages Posted: 22 Aug 2006

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: July 2006

Abstract

The purpose of this Policy Paper is to examine empirically the relative impact that a regulatory mandate like network neutrality would have on high-cost areas and to compare that relative burden to lower-cost urban areas. We find areas that are, on average, high-cost could be disproportionately affected by imposition of these mandates, even if the cost of complying with that mandate does not vary by geography. Using publicly available network cost models and data, we show that under plausible conditions, while network neutrality mandates negatively impact broadband deployment in all geographic areas regardless of average cost characteristics, such rules could disproportionately impact broadband deployment in high-cost areas. Moreover, our analysis that suggests the differential reduction in service availability for high-cost rural areas is six times as much as in lower cost, more urbanized markets.

Keywords: Network Neutrality, stupid network, rural broadband

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

Suggested Citation

Ford, George S. and Koutsky, Thomas M. and Spiwak, Lawrence J., The Burden of Network Neutrality Mandates on Rural Broadband Deployment (July 2006). Phoenix Center Policy Paper No. 25. Available at SSRN: https://ssrn.com/abstract=925349 or http://dx.doi.org/10.2139/ssrn.925349

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

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