Necessity and implementation of nationwide broadband expansion

Statement within the scope of the hearing procedure of the Committee for Media and Network Policy of the Rhineland-Palatinate State Parliament

Access to the internet with high data transmission rates (broadband) is not guaranteed nationwide in Germany. This paper estimates and compares the costs and benefits of a nationwide expansion of broadband infrastructure. It becomes clear that the overall economic benefit is clearly higher than the costs associated with broadband expansion. However, nationwide broadband roll-out results in negative producer rents under current market conditions. This suggests that the current situation outlined in this paper is inefficient from an economic perspective.