If competition is subsidized it can become artificial, said White...
If competition is subsidized it can become artificial, said White Paper released Thurs. by National Telecom Coop Assn. (NTCA). “The Cost of Competition” argues that competition doesn’t necessarily work in rural areas and it shouldn’t be forced. Bottom line…
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is “permit competition to develop in rural areas but don’t subsidize it,” NTCA said in news release. Authored by economist Dale Lehman, White Paper questioned wisdom of making universal service funds available to competitive entrants, saying that might undermine viability of broadband deployment by incumbent rural LEC. There isn’t real strong business case for broadband deployment in rural areas in first place, report said. Solution might be to increase universal service fund so more money would be available to all carriers, Lehman concluded -- www.ntca.org.