An Empirical Analysis of Broadband Access in Residential Multi-Tenant Environments

Using individual-level Census data this report analyzes the differences in fixed terrestrial broadband subscription rates across occupants of Multi-Tenant Environments (MTEs) and non-MTEs. We find that residential occupants of MTEs are on average slightly less likely to obtain a wireline broadband subscription than residential occupants of non-MTEs. The report also evaluates the effect of state mandatory access laws on broadband subscription rates, finding that the presence of a mandatory access law is on average associated with a higher rate of terrestrial fixed broadband subscription for residential occupants of MTEs and non-MTEs. The estimates suggest that the presence of a mandatory access law increases residential fixed terrestrial broadband subscription rates by 1.8 percentage points in MTEs after removing any potential correlation between a household’s residential and broadband access choices. This finding indicates that mandatory access laws are associated, on average, with a modest increase in the supply of broadband in MTEs. The authors hypothesize that this increase in subscription rates may be a result of a reduction in the marginal, or fixed, cost of supplying broadband or the result of increased consumer choices.