Skip to main content

Subsidies Hinder Broadband Penetration

"Universal service subsidies and other state-based support schemes do not help broadband penetration rates in rural areas, according to one of the first studies of empirical results of the effectiveness of such schemes. In a report that will be seized on by critics of government subsidy and competition policies, the AEI-Brookings Joint Centre for Regulatory Studies undertook a study that mapped broadband penetration across the US measured against various federal and state-based policies governing rights-of-way, unbundling, subsidies and direct municipal network provision. The study found that universal service mechanisms and programs targeted at underserved areas do not boost broadband penetration and may even slow it, possibly by giving an artificial advantage to one type of provider or another. Likewise, tax incentives appear to have no impact. It also concluded that laws limiting municipal deployment of broadband are not statistically correlated with broadband penetration; that access to public rights-of-way by broadband providers is strongly correlated with broadband penetration; and that telecom unbundling regulations also affect penetration, but resold lines are positively correlated with it."

Popular posts from this blog

The Smartphone Market's Premium Pivot

The global smartphone market closed 2025 with a story less about recovery and more about transformation. Premium product, ecosystem lock-in, and manufacturing scale are now the forces shaping competition. For business and technology leaders, the latest IDC market study data confirms that smartphones remain a critical indicator of consumer demand, supply chain health, and AI commercialization at the edge. Smartphone Market Development Global smartphone shipments grew 2.3 percent year-over-year in Q4 2025, reaching 336.3 million units and bringing full-year volumes to 1.26 billion units — a modest 1.9 percent annual increase, according to IDC. This smartphone growth emerged despite a memory shortage crisis, tariff volatility, supply chain disruption, and macroeconomic headwinds. What stabilized demand? Two factors: sustained growth in premium devices and strong foldable momentum, combined with accelerated purchases as consumers bought ahead of anticipated price increases. Buyers weren...