We argue that transparency of broadband works. Increasing transparency about the actual quality of broadband internet is good for consumers and increases quality and efficiency on broadband markets.
We conducted an experimental study in a laboratory, comparing various policy scenarios in which Internet Service Providers (ISPs) are obliged to disclose the actual quality of their service. Nowadays, consumers often only have information about the price and maximum bandwidth of broadband internet, which says little about the actual quality they experience. Results of this research indicate that increased transparency about actual quality leads to stronger competition between ISPs, and increases the quality of broadband.The Ministry of Economic Affairs supported this TILEC research project as part of its effort to implement the new European directives on electronic communications into Dutch telecommunications law. Our study is part of TILEC’s larger research agenda on innovation, competition policy and regulation, and we will use the data and results of this study for a number of academic publications.