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Whither policy design for broadband penetration? Evidence from 30 OECD countries

Listed author(s):
  • Belloc, Filippo
  • Nicita, Antonio
  • Alessandra Rossi, Maria

This paper aims to empirically investigate the impact of a vast array of public policies on wireline broadband penetration through a novel and unique dataset covering 30 OECD countries, over the period 1995–2010. Estimation results show that, while both supply- and demand-side policies have a positive effect on broadband penetration, their relative impact depends on the actual stage of broadband diffusion. When an advanced stage is reached, only demand-side policies appear to generate a positive and increasing effect. The analysis also finds that broadband adoption rates increase with the share of the service sector in the economy, with the number of mobile subscriptions and with the degree of market competition. This study thus allows to attain a more refined understanding of past experiences of broadband stimulation that may provide new insights for a selective policy design to promote both the development of traditional broadband and the rollout of next generation networks.

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Article provided by Elsevier in its journal Telecommunications Policy.

Volume (Year): 36 (2012)
Issue (Month): 5 ()
Pages: 382-398

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Handle: RePEc:eee:telpol:v:36:y:2012:i:5:p:382-398
DOI: 10.1016/j.telpol.2011.11.023
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  1. Hauge Janice A & Prieger James E., 2010. "Demand-Side Programs to Stimulate Adoption of Broadband: What Works?," Review of Network Economics, De Gruyter, vol. 9(3), pages 1-38, August.
  2. 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.
  3. Tony H. Grubesic & Alan T. Murray, 2002. "Constructing the divide: Spatial disparities in broadband access," Papers in Regional Science, Springer;Regional Science Association International, vol. 81(2), pages 197-221.
  4. Tony H. Grubesic, 2003. "Inequities in the broadband revolution," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 37(2), pages 263-289, 05.
  5. Gary Madden & Michael Simpson, 1997. "Residential broadband subscription demand: an econometric analysis of Australian choice experiment data," Applied Economics, Taylor & Francis Journals, vol. 29(8), pages 1073-1078.
  6. Troulos, Costas & Maglaris, Vasilis, 2011. "Factors determining municipal broadband strategies across Europe," Telecommunications Policy, Elsevier, vol. 35(9), pages 842-856.
  7. Michael L. Katz & Carl Shapiro, 1994. "Systems Competition and Network Effects," Journal of Economic Perspectives, American Economic Association, vol. 8(2), pages 93-115, Spring.
  8. Koenker, Roger W & Bassett, Gilbert, Jr, 1978. "Regression Quantiles," Econometrica, Econometric Society, vol. 46(1), pages 33-50, January.
  9. James E. Prieger, 2003. "The Supply Side of the Digital Divide: Is There Equal Availability in the Broadband Internet Access Market?," Economic Inquiry, Western Economic Association International, vol. 41(2), pages 346-363, April.
  10. 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.
  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.
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