Brattle Experts Explore the Economic Impact of Eliminating or Reducing E-Rate Program
The Federal Communications Commission (FCC) is considering whether to eliminate or significantly reduce E-Rate, a program that helps schools and libraries pay for broadband service and the internal networks needed to use it throughout their facilities.
In a new white paper prepared for the Schools, Health & Libraries Broadband (SHLB) Coalition, Brattle Principal Dr. Paroma Sanyal and Managing Energy Associate Dr. Wonjun Chang estimate that eliminating approximately $2.6 billion in annual E-Rate support would reduce US GDP by $4.2 billion annually, real wages by $2.8 billion, and tax revenues by $1.5 billion.
The authors also examine the effects of eliminating support for internal network infrastructure alone. Their analysis explains how, without E-Rate, schools and libraries would have to devote more of their limited budgets to connectivity, leaving less for other educational and library services.
The full paper is available below.
