White Paper on Broadband Affordability
In a new economic analysis, Professor Gregory Rosston of Stanford Institute for Economic Policy Research and Ofer Cohen of Cornerstone Research examine a range of approaches to measuring the affordability of communications services, including the “Affordability Ratio Calculator” (ARC) developed by the California Public Utilities Commission (CPUC). They also discuss the policy solutions likely to be most effective in achieving broadband affordability goals. As the authors explain, rather than developing and relying on new, complex, and problematic metrics, such as the CPUC’s ARC, a better solution to address affordability concerns for low-income households would be to (i) allow market forces to continue to drive more competition and lower prices in the highly dynamic broadband marketplace, and (ii) focus on ISPs’ low-cost offerings and subsidies that are directly targeted to those in need.
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