PACIS 2019 Proceedings
Abstract
Several Internet Service Providers (ISPs) and Content Providers (CPs) have proposed zero rating plans whereby consumers get access to certain websites without paying for it. While open-access advocates have decried these plans, arguing that they are anti-competitive, ISPs and CPs argue that suchinitiativesenableInternet-deprivedsegmentsofsocietytofinallybeabletoaccesstheInternet. Our worklooksatthisissueinthepresenceofdigitaldivide. WeanalyzeISP’sandCPs’decision-makingas well as its subsequent impact on social welfare when a fraction of the population does not have access to the Internet. Our research finds that zero-rating plans can enhance social welfare for most levels of digital divide. However, Internet regulators need to be vigilant, since the ISPs may sometime deviate fromastrategythatmaximizessocialwelfare. Thestudyhasimplicationsforpolicymakers,particularly those,forwhomincreasingInternetpenetrationremainsacrucialgoal.
Recommended Citation
Pandey, Neena; Bhalla, Manaswini; and Bandyopadhyay, Subhajyoti, "Role of Digital Divide in Optimal Zero Rating Policy" (2019). PACIS 2019 Proceedings. 220.
https://aisel.aisnet.org/pacis2019/220