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The diffusion of ADSL and costs of switching Internet providers in the broadband industry: Evidence from the French case

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Author Info

  • Krafft, Jackie
  • Salies, Evens

Abstract

The innovative broadband Internet industry is characterised by inertia phenomena in terms of technology choice, as well as selection of Internet service providers (ISPs). Within the set of firms providing the Internet, very often in Europe the incumbent operator has the lion's share of end-customers and supplies the dominant technology. Focusing on the French case, this paper shows that although inertia on the supply side (partly due to the regulation process itself), helps to explain the technology mix reached to date, a more complete picture of the inertia can be obtained when we consider the existence of costs faced by customers when switching between ISPs. We calculate these so-called "switching costs". The closing section of this paper derives several implications in terms of policy.

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Bibliographic Info

Article provided by Elsevier in its journal Research Policy.

Volume (Year): 37 (2008)
Issue (Month): 4 (May)
Pages: 706-719

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Handle: RePEc:eee:respol:v:37:y:2008:i:4:p:706-719

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Web page: http://www.elsevier.com/locate/respol

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References

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Cited by:
  1. repec:spo:wpecon:info:hdl:2441/5l6uh8ogmqildh09h56210pa6 is not listed on IDEAS
  2. Jackie Krafft & Evens Salies, 2008. "Why and how should innovative industries with high consumer switching costs be re-regulated?," Documents de Travail de l'OFCE 2008-13, Observatoire Francais des Conjonctures Economiques (OFCE).
  3. Christian M. Bender & Georg Götz, 2011. "Coexistence of Service- and Facility-Based Competition: The Relevance of Access Prices for "Make-or-Buy"-Decisions," MAGKS Papers on Economics 201107, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
  4. Evens Salies, 2011. "Product innovation when consumers have switching costs," Sciences Po publications 2011-07, Sciences Po.

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