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Lessons from broadband development in Canada, Japan, Korea and the United States

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  • Frieden, Rob

Abstract

Broadband network development does not always track closely a nations overall wealth and economic strength. The International Telecommunication Union reported that in 2005 the five top nations for broadband network market penetration were: Korea, Hong Kong, the Netherlands, Denmark and Canada. The ITU ranked the United States sixteenth in broadband penetration. Aside from the obvious geographical and demographic advantages accruing to small nations with large urban populations, broadband development thrives when it becomes a national priority. Both developed and developing nations have stimulated capital expenditures for infrastructure in ways United States public and private sector stakeholders have yet to embrace. Such investments have accrued ample dividends including the lowest broadband access costs in the world. For example, the ITU reports that in 2002 Japanese consumers paid $0.09 per 100 kilobits per second of broadband access compared to $3.53 in the United States. Economic policies do not completely explain why some nations offer faster, better cheaper and more convenient broadband services while other nations do not. This paper will examine best practices in broadband network development with an eye toward determining the optimal mix of legislative, regulatory and investment initiatives. The paper will track development in Canada, Japan and Korea as these nations have achieved success despite significantly different geographical, political and marketplace conditions. The paper also notes the institutional and regulatory policies that have hampered broadband development in the United States. The paper also will examine why incumbent local exchange and cable television operators recently have begun aggressively to pursue broadband market opportunities. The paper will analyze incumbents' rationales for limited capital investment in broadband with an eye toward determining the credibility of excuses based on regulatory risk and uncertainty. The paper concludes with suggestions how national governments might expedite broadband infrastructure development.

Suggested Citation

  • Frieden, Rob, 2005. "Lessons from broadband development in Canada, Japan, Korea and the United States," Telecommunications Policy, Elsevier, vol. 29(8), pages 595-613, September.
  • Handle: RePEc:eee:telpol:v:29:y:2005:i:8:p:595-613
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    Citations

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    Cited by:

    1. José Gómez-Barroso & Claudio Feijóo, 2012. "Volition versus feasibility: state aid when aid is looked upon favourably: the broadband example," European Journal of Law and Economics, Springer, vol. 34(2), pages 347-364, October.
    2. Troulos, Costas & Maglaris, Vasilis, 2011. "Factors determining municipal broadband strategies across Europe," Telecommunications Policy, Elsevier, vol. 35(9), pages 842-856.
    3. Howell, Bronwyn, 2012. "Competition and Regulation Policy in Antipodean Government-Funded UltraFast Fibre Broadband Markets," Working Paper Series 4133, Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation.
    4. Yamakawa, Peter & Cadillo, Gloria & Tornero, Rubén, 2012. "Critical factors for the expansion of broadband in developing countries: The case of Peru," Telecommunications Policy, Elsevier, vol. 36(7), pages 560-570.
    5. Chang, Younghoon & Siew Fan Wong & Park, Myeong-cheol, 2014. "Determinants of user satisfaction in internet use among socio-economically advantaged and disadvantaged groups: The role of digital access and government policy," 25th European Regional ITS Conference, Brussels 2014 101432, International Telecommunications Society (ITS).
    6. Kim, Wook Joon, 2014. "Estimating quality-adjusted prices for residential fixed broadband in South Korea 2000 - 2009," 20th ITS Biennial Conference, Rio de Janeiro 2014: The Net and the Internet - Emerging Markets and Policies 106886, International Telecommunications Society (ITS).
    7. Howell, Bronwyn, 2012. "Competition and Regulation Policy in Antipodean Government-Funded UltraFast Fibre Broadband Markets," Working Paper Series 2787, Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation.
    8. Gulati, Girish J. & Yates, David J., 2012. "Different paths to universal access: The impact of policy and regulation on broadband diffusion in the developed and developing worlds," Telecommunications Policy, Elsevier, vol. 36(9), pages 749-761.
    9. Rajabiun, Reza, 2017. "The Rise of Broadband as an Essential Utility and Emergent Concepts in Universal Access in Advanced Economies: Perspectives from Canada," 28th European Regional ITS Conference, Passau 2017 169494, International Telecommunications Society (ITS).
    10. Juan Jung & Enrique López-Bazo, 2017. "“On the regional impact of broadband on productivity: the case of Brazil”," AQR Working Papers 201704, University of Barcelona, Regional Quantitative Analysis Group, revised May 2017.
    11. Jung, Juan, 2014. "Regional inequalities in the impact of broadband on productivity: Evidence from Brazil," MPRA Paper 56177, University Library of Munich, Germany.
    12. Sangwon Lee & Justin S. Brown, 2008. "The Diffusion of Fixed Broadband: An Empirical Analysis," Working Papers 08-19, NET Institute, revised Sep 2008.
    13. Srinuan, Chalita & Bohlin, Erik, 2013. "Analysis of fixed broadband access and use in Thailand: Drivers and barriers," Telecommunications Policy, Elsevier, vol. 37(8), pages 615-625.
    14. Howell, Bronwyn, 2011. "Competition and Regulation Policy in Antipodean Government-Funded Ultrafast Broadband Network Markets," Working Paper Series 4099, Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation.
    15. Rajabiun, Reza & Middleton, Catherine A., 2013. "Multilevel governance and broadband infrastructure development: Evidence from Canada," Telecommunications Policy, Elsevier, vol. 37(9), pages 702-714.
    16. Lin, Mao-Shong & Wu, Feng-Shang, 2013. "Identifying the determinants of broadband adoption by diffusion stage in OECD countries," Telecommunications Policy, Elsevier, vol. 37(4), pages 241-251.
    17. Shin, Dong-Hee & Kim, Hyup (Henry) & Kim, Nam Cheol & Kim, So Jeong & Kim, Sungho & Kim, Guri, 2015. "Application of Actor-Network Theory to Network Neutrality in Korea," 26th European Regional ITS Conference, Madrid 2015 127176, International Telecommunications Society (ITS).
    18. Shin, Dong-Hee & Jung, Jaemin, 2012. "Socio-technical analysis of Korea's broadband convergence network: Big plans, big projects, big prospects?," Telecommunications Policy, Elsevier, vol. 36(7), pages 579-593.
    19. Srinuan, Chalita & Srinuan, Pratompong & Bohlin, Erik, 2011. "An analysis of mobile internet service in Thailand: Implications for bridging digital divide," 8th ITS Asia-Pacific Regional Conference, Taipei 2011: Convergence in the Digital Age 52326, International Telecommunications Society (ITS).
    20. Jain, Rekha, 2014. "The Indian broadband plan: A review and implications for theory," Telecommunications Policy, Elsevier, vol. 38(3), pages 278-290.
    21. Thai, Do Manh & Falch, Morten & Williams, Idongesit, 2015. "The Role Of Stakeholders On Implementing Universal Services In Vietnam," 26th European Regional ITS Conference, Madrid 2015 127184, International Telecommunications Society (ITS).

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