Mikhail M. Taipov The Impact of Network Neutrality on Investments in the Russian Telecommunications Industry

DOI: 10.38050/2078-3809-2026-18-1-67-83

Abstract

Net Neutrality may have an impact on ISPs’ investments in network infrastructure, which can affect the quality of Internet communication. In this paper, using the «difference-in-differences» method and the constructed synthetic control, the effect of the introduction of Net Neutrality in Russia on investments in the telecommunications industry is assessed. This study uses data on investments in fixed capital in the telecommunications industry and other sectors of the Russian economy, from which those sectors in which investment trends prior to the introduction of network neutrality were similar to the trend in the telecommunications industry, are selected as a control group. The results obtained do not allow us to assert that the introduction of Net Neutrality in 2016 had a significant effect on investments in the Russian telecommunications industry.The possible abolition of Net Neutrality is being currently discussed in Russia, and since one of the main arguments of opponents of Net Neutrality is its alleged negative effect on investments, the fact that this work did not find a significant impact of Net Neutrality on investment in the Russian telecommunications industry may help regulators make an informed decision on further policy in relation to Net Neutrality.

Keywords: Net Neutrality, investments, ISPs, difference-in-differences, synthetic control.

JEL: O30, O38.

For citation: Taipov, M.M. (2026) The Impact of Network Neutrality on Investments in the Russian Telecommunications Industry. Scientific Research of Faculty of Economics. Electronic Journal, vol. 18, no. 1, pp. 67-83. DOI: 10.38050/2078-3809-2026-18-1-67-83.

Download