Municipal broadband systems typically charge consumers substantially more...
Municipal broadband systems typically charge consumers substantially more than their private-sector rivals for similar triple-play offerings, the Phoenix Center found in a study released Monday (http://bit.ly/1mPncJN). “The evidence suggests that the government’s provision of broadband services does not lead to…
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lower prices,” said Phoenix Center Chief Economist George Ford, in a statement. “While municipal entry may serve valid purposes, lower prices do not appear to be one of them.” The competitive price for a standard triple-play service is about $100 in the U.S., and “the expansion of municipal provision of broadband service won’t alone alter that reality,” the paper said. It’s also not possible to conclude that a lower price implies better consumer welfare, the paper said. The study said it sought to “correct the errors” in a Consumer Federation of America report urging governments to “intervene to protect the public” by building more municipal networks to compete with private-sector providers.