The Australian
Government are in the process of establishing a National Broadband Network
(NBN) a wholesaler of Internet services. There has been some discussion about
whether the Government will keep a promise to provide high-speed Internet
coverage to rural (country) areas at the same price that it will be provided to
cities. Assume the promise is kept and the NBN firm provides Internet services
to all areas (city and country) at the same rate. What effects would you expect
that policy to have? (Think about effects on all the parties involved.)