CALinnovates Study Shows Investment + Smart Policy = Broadband Benefitting Californians
Mobile Broadband Subscriptions Increased 563 Percent
Residential Wireline Connections Declined by 4.3 Million, While Wireless Subscriptions Increased by 9.5 Million
Despite A 25x National Mobile Usage Increase, Prices Decreased by 14 Percent
SAN FRANCISCO, Feb. 9, 2017 /PRNewswire-USNewswire/ -- A new CALinnovates study finds that consumer demand has spurred tremendous growth in communications markets, driving competition and investment in California and across the United States. The study, Consumer-Driven Competition in California Communications Market, written by economist David W. Sosa, finds rising levels of choice and declining prices in the broadband and wireless market as increasing numbers of consumers prefer advanced technologies over traditional home phone options.
From 2008 to 2015, wireline broadband speeds have increased 700 percent, while broadband prices in California have declined as much as 76 percent. During the same time period, VoIP connections in the state increased by 220 percent, 9.5 million wireless subscriptions were added, and, around the country, the average monthly wireless bill fell 14 percent.
Characterizing California's communications market as "hyper-competitive", Dr. Sosa identifies a wide range of benefits for consumers, such as tele-health and assistive technology applications, IP and wireless-based public safety tools, and lower prices and higher levels of adoption across the state, including California's rural and low income communities.
Given the "amazing technological and service advances" produced by the market, Dr. Sosa finds that California's reliance on competition, rather than regulation, in state policy has been key to promoting innovation and investment in the state. The result has been nothing less than a technological revolution that has led to decreasing prices and a wide array of choices for California consumers.
"Technology must work for everyone, and this study shows that the state's balanced approach to telecommunications policy and a smart regulatory environment are paying off for all Californians," said Kish Rajan, chief evangelist for CALinnovates. "Governor Brown's emphasis on transparency and right-sized oversight in telecommunications innovations is paying dividends: the sizable increase in wireless California homes is a strong indicator that more Californians are getting the up-to-date technology they need to live and work in 2017."
"Consumers have embraced wireless technologies and advanced services, benefitting from decreasing prices and a wide array of choices," said David Sosa, author of Consumer-Driven Competition in California Communications Market study. "With the technological revolution and pro-innovation state policy, the market has evolved to provide solutions that improve consumers' lives and address business needs. California's broadband developments of the past decade indicate that Californians will be well served by policies designed to foster competition and innovation."
Additional findings in the study demonstrate how online habits are changing:
- 55 percent of Californians get healthcare information online.
- 53 percent of Californians do their banking online.
- 63 percent of California parents use the internet to connect with their children's school.
ABOUT THE AUTHOR
Dr. David Sosa (Ph.D., University of California, Davis) specializes in the economics of network industries, law and economics, and industrial organization. He has consulted to telecommunications and electric utility clients on a broad range of litigation and regulatory issues, including industry restructuring, technical standardization, operational and financial benchmarking, mergers and acquisitions, market power analysis, and competitive strategy. Dr. Sosa has served as an expert witness before several state and federal agencies, and has supported testifying experts in assessing the economic impacts of several high-profile mergers in the telecommunications industry. In other telecommunications work, Dr. Sosa has analyzed spectrum license acquisitions, wireless technology standards, and voice and data roaming markets. He is a frequent public speaker and has published a number of articles in industry and professional journals, including Public Utilities Fortnightly, the Journal of Legal Studies, and the Michigan Telecommunications and Technology Law Review. He is a member of the American Economic Association and Federal Communications Bar Association. Before joining Analysis Group, he consulted to the California Energy Commission and Telcordia.
ABOUT CALINNOVATES
CALinnovates is a group of non-partisan policy and technology experts who are bridging the gap between Silicon Valley, Sacramento and Washington DC.
SOURCE CALinnovates
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