Robert Seamans

The coronavirus pandemic has laid bare many of the inequalities in America, including the differences in access to broadband Internet. Three policies that can help: (1) allow cities to provide their own broadband; (2) expand and reform Lifeline; and (3) provide tax incentives to firms that subsidize their employees’ broadband. The first of these policies stimulates the “supply” of broadband, while the second two stimulate “demand.” Together, these policies should help reduce the digital divide.

[Commentary] This version of the Bytes Chat discusses the wisdom of restrictions against municipal broadband with three economists who are following the issue closely.

Kyle Wilson: It’s worth remembering that unlike schools, installing a municipal network creates a new stream of revenue, even though it may not be enough to break even.