Regulating Broadband Prices

The affordability and accessibility of broadband services are largely determined by the prices that are charged for those services. The regulation of prices can thus be a very tempting prospect for policymakers and regulators who want to increase the adoption and use of broadband services at the earliest time. However, price intervention in broadband markets is a risky proposition and potentially damaging to the long-term development of those markets. The premise of this paper is that regulators should refrain from regulating prices in broadband markets, particularly while those markets are still developing, further investment is still required, and demand remains uncertain.