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The impact of tariff diversity on broadband penetration—An empirical analysis

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  • Haucap, Justus
  • Heimeshoff, Ulrich
  • Lange, Mirjam R.J.

Abstract

This paper provides an empirical analysis how tariff diversity affects fixed broadband penetration. To measure tariff diversity on a country-level a detailed data set comprising over 1000 fixed-line broadband tariffs is used. An instrumental variable approach is applied to estimate demand, controlling for various industry and socio-economic factors. Our results indicate that service-related and socio-economic factors affect broadband demand the most. An increase in tariff diversity provides a significant impetus to broadband adoption. A positive relationship is indicative of the importance of innovative pricing schemes in expediting the ascent of broadband internet access.

Suggested Citation

  • Haucap, Justus & Heimeshoff, Ulrich & Lange, Mirjam R.J., 2016. "The impact of tariff diversity on broadband penetration—An empirical analysis," Telecommunications Policy, Elsevier, vol. 40(8), pages 743-754.
    • Handle: RePEc:eee:telpol:v:40:y:2016:i:8:p:743-754
    DOI: 10.1016/j.telpol.2015.09.005
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    Cited by:

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    4. Layton, Roslyn & Potgieter, Petrus, 2021. "Rural Broadband and the Unrecovered Cost of Streaming Video Entertainment," 23rd ITS Biennial Conference, Online Conference / Gothenburg 2021. Digital societies and industrial transformations: Policies, markets, and technologies in a post-Covid world 238035, International Telecommunications Society (ITS).
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    6. Fabian Queder, 2020. "Towards a vertically separated broadband infrastructure: The potential role of voluntary separation," Competition and Regulation in Network Industries, , vol. 21(2), pages 143-165, June.

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    More about this item

    Keywords

    L86; L96.; Broadband demand; Tariff diversity; Price discrimination;
    All these keywords.

    JEL classification:

    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software

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