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Government subsidies of retail broadband plans could be useful for increasing broadband penetration

23 August 2021 | Research

Stephen Wilson

Article | PDF (3 pages) | Fixed Broadband Services


"The use of government-funded demand-side initiatives to increase fixed broadband penetration is generally underexplored and such schemes could deliver benefits."

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Many governments believe that increasing the household penetration of fixed broadband is an important policy objective. As such, they may consider demand-side initiatives in which they subsidise end-user fixed broadband retail plans in order to increase subscriber take-up. Such initiatives aim to establish fixed broadband networks and governments, particularly as a result of the pandemic, consider fixed connectivity to provide cost and social benefits. In this article, we assess the attractiveness of government-funded subsidies of retail fixed broadband plans.

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