In a Sept. 9 blog post, Free State Foundation leaders Randolph May and Joseph Kennedy respond to a Penn State professor’s call for maximum broadband rates, arguing that price caps would raise costs and hinder innovation while competition and targeted subsidies better address affordability.
Free State Foundation leaders Randolph May and Joseph Kennedy oppose setting maximum retail broadband rates proposed by Penn State’s Christopher Ali.
The Free State argument: market competition and targeted subsidies, not rate caps, will better lower costs and preserve innovation.
Their assessment cautions that price regulation could raise costs and stifle innovation in what they describe as an increasingly competitive broadband market.
# What happened
On Sept. 9, Free State Foundation President Randolph May and Senior Fellow Joseph Kennedy published a blog post responding to Penn State professor Christopher Ali's proposal to consider maximum broadband rates. Ali had urged policymakers to weigh price regulation to help households struggling with broadband bills. May and Kennedy rejected that approach.
# The Free State position
May and Kennedy argue that imposing retail price caps would be counterproductive. They say rate regulation risks raising costs for consumers and reducing incentives for investment and innovation. Their view is that market-determined prices, supported by competition and targeted subsidies where needed, will deliver lower prices and better services over time.
# The dispute in short
# Why Free State opposes price caps
The Free State blog post advances two practical points:
1) Price caps alter market incentives. May and Kennedy claim that capping retail rates can raise costs and discourage investment and innovation — outcomes that would undermine long-term service quality and availability.
2) Competitive markets and targeted assistance work better. They argue that where competition is present, market forces drive prices down. For consumers who still face affordability challenges, targeted subsidies are the appropriate policy tool rather than broad regulation of retail prices.
# What this means for policy debates
The exchange highlights a widening policy debate over how to improve broadband affordability. One camp supports regulatory tools, including potential rate caps, to curb high consumer bills. The other camp warns that such measures risk unintended consequences and prefers competition-enhancing policies plus targeted financial support.
The Free State post frames the issue as a choice between direct price regulation versus market-based solutions plus targeted subsidies. That framing will matter for lawmakers and regulators weighing any future proposals to set maximum broadband rates.
# Concrete takeaways for readers
# Where this conversation connects to other reporting
This piece responds directly to Christopher Ali's earlier call for rate caps. The discussion sits alongside broader coverage of broadband policy choices, including debates over market structure, subsidy programs, and regulatory intervention.
# Bottom line
Free State's public rebuttal makes clear it opposes retail price caps for broadband. It recommends relying on competition and targeted subsidies to improve affordability while warning that caps could increase costs and curb innovation in the broadband market.
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