Vermont Telephone Company, Inc. | Supplement | Project Data
Vermont Telephone, in partnership with Connected Nation, tested the effect of subsidy on fixed broadband adoption by offering different prices to selected wire centers. Other wire centers were only offered service at un-discounted prices. Vermont Telephone sought to randomize which wire centers were given each offer. The treatment group offer was to either maintain a uniform $9.95 end-user charge for the full 12 months if the customer subscribed to a long-distance plan or to be charged a $9.95 end-user charge for the first three months, followed by a $14.95 end-user charge for the remaining 9 months. To achieve this end-user charge structure in the treatment groups, the subsidy varied over the year. The undiscounted wire centers paid $29.95/month with long-distance and $34.95/month without long distance.

Wednesday, May 20, 2015