Net Neutrality and Universal Service Obligations: It’s All About Bandwidth

B-Tier
Journal: Review of Industrial Organization
Year: 2024
Volume: 64
Issue: 4
Pages: 581-614

Authors (3)

Axel Gautier (not in RePEc) Jean-Christophe Poudou (Université de Montpellier) Michel Roland (not in RePEc)

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Abstract This paper analyzes whether repealing net neutrality (NN) improves or decreases the capacity of a regulator to make internet service providers (ISPs) extend broadband coverage through universal service obligations (USOs). We model a two-sided market where a monopolistic ISP links content providers (CPs) to end users with a broadband network of a given bandwidth. A regulator determines whether to subject the ISP to NN or to allow it to supply paid priority (P) services to CPs. She can also impose a broadband USO to the ISP: She can mandate the broadband market coverage. We show that the greater is the network bandwidth, the more likely is the repeal of NN to increase ISP profits and social welfare. Regulation can still be necessary, however, as there are bandwidth ranges for which the ISP would benefit from a repeal of NN while such a repeal is detrimental to society.

Technical Details

RePEc Handle
repec:kap:revind:v:64:y:2024:i:4:d:10.1007_s11151-024-09945-1
Journal Field
Industrial Organization
Author Count
3
Added to Database
2026-01-29