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Should BT Open Reach be nationalised?

Graham Watson

18th November 2019

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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

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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.