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In the News

Should BT Open Reach be nationalised?

Graham Watson

18th November 2019

The Labour Party have pledged to provide free broadband for all by nationalising the digital arm of BT - Open Reach - and in doing so, hopefully act as a supply-side measure lifting productivity.

However, it is controversial - not least because of the cost - but also because of concerns that there's little evidence that state ownership will increase economic efficiency.

From a microeconomic perspective, there's also the question of what happens when something is provided 'free' - is there a possibility of broadband consumption becoming rivalrous

Graham Watson

Graham Watson has taught Economics for over twenty years. He contributes to Tutor2U, reads voraciously and is interested in all aspects of Teaching and Learning.

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