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Residential broadband subscription demand: an econometric analysis of Australian choice experiment data

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  • Madden, Gary G
  • Simpson, Michael

Abstract

The recent roll-out of fibre-optic cable suggests that the willingness of households in passed communities to subscribe to networked services is an important issue. This paper studies the determination of the demand for network subscription. Through a discrete choice model the effect of installation and rental price on the likelihood of subscription is analysed. The logit regression is based on choice experiment (stated preference)subscription data obtained from a national survey of households. Limitations of this preliminary work and suggestions for future research are discussed.

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File URL: http://mpra.ub.uni-muenchen.de/11936/
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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 11936.

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Date of creation: 1997
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Handle: RePEc:pra:mprapa:11936

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Keywords: Broadband subscription demand;

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References

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  1. Park, Rolla Edward & Mitchell, Bridger M. & Wetzel, Bruce M. & Alleman, James H., 1983. "Charging for local telephone calls : How household characteristics affect the distribution of calls in the GTE Illinois experiment," Journal of Econometrics, Elsevier, vol. 22(3), pages 339-364, August.
  2. Madden, Gary & Bloch, Harry & Hensher, David, 1993. "Australian telephone network subscription and calling demands: evidence from a stated-preference experiment," Information Economics and Policy, Elsevier, vol. 5(3), pages 207-230, October.
  3. Bodnar & Peter Dilworth & Salvatore Iacono, Judith, 1988. "Cross-sectional analysis of residential telephone subscription in Canada," Information Economics and Policy, Elsevier, vol. 3(4), pages 355-378.
  4. Madden, Gary, 1995. "Experimentation in Economics: An Overview of the Stated-Preference Experimental Design Method," Australian Economic Papers, Wiley Blackwell, vol. 34(64), pages 120-35, June.
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Citations

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Cited by:
  1. Madden, Gary & Savage, Scott & Simpson, Michael, 1996. "Information Inequality and Broadband Network Access: An Analysis of Australian Household Data," Industrial and Corporate Change, Oxford University Press, vol. 5(4), pages 1049-66.
  2. Baranes, Edmond & Bourreau, Marc, 2005. "An Economist's Guide to Local Loop Unbundling," MPRA Paper 2510, University Library of Munich, Germany.
  3. Harald Gruber & Pantelis Koutroumpis, 2013. "Competition enhancing regulation and diffusion of innovation: the case of broadband networks," Journal of Regulatory Economics, Springer, vol. 43(2), pages 168-195, April.
  4. Ching-I Huang, 2013. "Intra-household effects on demand for telephone service: Empirical evidence," Quantitative Marketing and Economics, Springer, vol. 11(2), pages 231-261, June.
  5. Pratompong Srinuan & Chalita Srinuan & Erik Bohlin, 2011. "The Mobile Broadband and Fixed Broadband Battle in Swedish Market: Complementary or substitution?," RSCAS Working Papers 2011/36, European University Institute.
  6. Sunada, Mitsuru & Noguchi, Masato & Ohashi, Hiroshi & Okada, Yosuke, 2011. "Coverage area expansion, customer switching, and household profiles in the Japanese broadband access market," Information Economics and Policy, Elsevier, vol. 23(1), pages 12-23, March.
  7. Madden, Gary & Savage, Scott J. & Coble-Neal, Grant, 1999. "Subscriber churn in the Australian ISP market," Information Economics and Policy, Elsevier, vol. 11(2), pages 195-207, July.
  8. Manit Satitsamitpong & Tokio Otsuka & Toshiya Jitsuzumi & Hitoshi Mitomo, 2012. "An Analysis of Demand-based Factors for Broadband Migration," Applied Economics Journal, Kasetsart University, Faculty of Economics, Center for Applied Economic Research, Kasetsart University, Faculty of Economics, Center for Applied Economic Research, vol. 19(2), pages 1-17, December.
  9. Filippo Belloc & Antonio Nicita & Maria Alessandra Rossi, 2011. "The Nature, Timing and Impact of Broadband Policies: a Panel Analysis of 30 OECD Countries," Department of Economics University of Siena 615, Department of Economics, University of Siena.
  10. Gruber, Harald & Koutroumpis, Pantelis, 2011. "Procompetitive infrastructure sector regulation and diffusion of innovation: The case of broadband networks," 22nd European Regional ITS Conference, Budapest 2011: Innovative ICT Applications - Emerging Regulatory, Economic and Policy Issues 52161, International Telecommunications Society (ITS).
  11. Mélisande Cardona & Anton Schwarz & B. Yurtoglu & Christine Zulehner, 2009. "Demand estimation and market definition for broadband Internet services," Journal of Regulatory Economics, Springer, vol. 35(1), pages 70-95, February.
  12. Hidalgo, Julian & Oviedo, Juan D., 2014. "The impact of Broadband quality standards on Internet services market structure in Colombia," 25th European Regional ITS Conference, Brussels 2014 101435, International Telecommunications Society (ITS).
  13. Michael Demoussis & Nicholas Giannakopoulos, 2006. "Facets of the digital divide in Europe: Determination and extent of internet use," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 15(3), pages 235-246.
  14. Srinuan, Chalita & Srinuan, Pratompong & Bohlin, Erik, 2010. "The Mobile Broadband and Fixed Broadband Battle in Swedish market: Exploring complementary or substitution," 21st European Regional ITS Conference, Copenhagen 2010: Telecommunications at new crossroads - Changing value configurations, user roles, and regulation 33, International Telecommunications Society (ITS).
  15. Filippo Belloc & Antonio Nicita & Maria Alessandra Rossi, 2009. "Whither Broadband Policy? In Search of Selective Intervention," Department of Economics University of Siena 567, Department of Economics, University of Siena.

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