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An analysis of the determinants of broadband access

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  • Flamm, Kenneth
  • Chaudhuri, Anindya

Abstract

This paper extends the analysis of the relative impacts of socioeconomic factors on households' decision to subscribe to dialup Internet access [Chaudhuri, A., Flamm, K., & Horrigan, J. (2005). An analysis of the determinants of Internet access, presented at the Telecommunications Policy Research Conference, Washington, DC, October 1-3] to the decision to subscribe to broadband. A simple cumulative utility (ordered logit) model is rejected in favor of a partial proportional odds model, and the authors found that the decision to purchase any access at all, and the decision to upgrade to broadband, may be affected differently by various socioeconomic factors. The own-price elasticity of broadband demand is statistically significant and has a substantial coefficient value. The cross-price sensitivity of broadband demand with respect to dialup price is also statistically significant, and supports the notion of the two services being substitutes.

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Bibliographic Info

Article provided by Elsevier in its journal Telecommunications Policy.

Volume (Year): 31 ()
Issue (Month): 6-7 (July)
Pages: 312-326

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Handle: RePEc:eee:telpol:v:31:y::i:6-7:p:312-326

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Related research

Keywords: Broadband Price elasticity Pricing Dialup Internet Access Digital divide Willingness to pay;

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Cited by:
  1. Tselekounis, Markos & Maniadakis, Dimitris & Varoutas, Dimitris, 2012. "NGA investments: A departure from the existing cost and demand structure assumptions," 19th ITS Biennial Conference, Bangkok 2012: Moving Forward with Future Technologies - Opening a Platform for All 72490, International Telecommunications Society (ITS).
  2. Srinuan, Chalita & Bohlin, Erik, 2011. "Understanding the digital divide: A literature survey and ways forward," 22nd European Regional ITS Conference, Budapest 2011: Innovative ICT Applications - Emerging Regulatory, Economic and Policy Issues 52191, International Telecommunications Society (ITS).
  3. Vergara, Sebastián & Rovira, Sebastián & Balboni, Mariana, 2011. "ICT in Latin America: A Microdata Analysis," MPRA Paper 34598, University Library of Munich, Germany.
  4. G, Thiagarajan & Nakkeeran, Senthilkumar & Arockiasamy, Arulraj, 2010. "Mediating effects of broadband consumers’ behavior in India," MPRA Paper 26840, University Library of Munich, Germany, revised 27 Jul 2010.
  5. Victor Glass & Stela Stefanova, 2010. "An empirical study of broadband diffusion in rural America," Journal of Regulatory Economics, Springer, vol. 38(1), pages 70-85, August.
  6. Whitacre, Brian E., 2008. "Factors Influencing the Temporal Diffusion of Broadband Adoption: Evidence from Oklahoma," 2008 Annual Meeting, February 2-6, 2008, Dallas, Texas 6934, Southern Agricultural Economics Association.
  7. Brian Whitacre, 2008. "Factors influencing the temporal diffusion of broadband adoption: evidence from Oklahoma," The Annals of Regional Science, Springer, vol. 42(3), pages 661-679, September.
  8. repec:reg:wpaper:314 is not listed on IDEAS
  9. Renkow, Mitch, 2011. "Residential Broadband Availability: Evidence from Kentucky and North Carolina," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 40(2), August.

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