IDEAS home Printed from https://ideas.repec.org/a/eee/telpol/v36y2012i5p382-398.html
   My bibliography  Save this article

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

Author

Listed:
  • Belloc, Filippo
  • Nicita, Antonio
  • Alessandra Rossi, Maria

Abstract

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.

Suggested Citation

  • Belloc, Filippo & Nicita, Antonio & Alessandra Rossi, Maria, 2012. "Whither policy design for broadband penetration? Evidence from 30 OECD countries," Telecommunications Policy, Elsevier, vol. 36(5), pages 382-398.
  • Handle: RePEc:eee:telpol:v:36:y:2012:i:5:p:382-398
    DOI: 10.1016/j.telpol.2011.11.023
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0308596111002163
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    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, May.
    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.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Palcic, Dónal & Reeves, Eoin, 2013. "Private equity leveraged buyouts in European telecoms: The case of Eircom," Telecommunications Policy, Elsevier, vol. 37(6), pages 573-582.
    2. Briglauer, Wolfgang & Holzleitner, Christian, 2014. "Efficient contracts for government intervention in promoting next generation communications networks," ZEW Discussion Papers 14-022, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    3. Briglauer Wolfgang & Frübing Stefan & Vogelsang Ingo, 2014. "The Impact of Alternative Public Policies on the Deployment of New Communications Infrastructure – A Survey," Review of Network Economics, De Gruyter, vol. 13(3), pages 227-270, September.
    4. Briglauer, Wolfgang, 2017. "Does State Aid For Broadband Deployment In Rural Areas Close The Digital And Economic Divide?," Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking 168055, Verein für Socialpolitik / German Economic Association.
    5. Tselekounis, Markos & Varoutas, Dimitris & Martakos, Drakoulis, 2014. "A CDS approach to induce facilities-based competition over NGA networks," Telecommunications Policy, Elsevier, vol. 38(3), pages 311-331.
    6. Oughton, Edward J., 2016. "Studying the Costs of Fibre Deployment in Fixed Broadband Access Infrastructure: Evidence from the UK's National Needs Assessment," 27th European Regional ITS Conference, Cambridge (UK) 2016 148695, International Telecommunications Society (ITS).
    7. Mayer, Walter J. & Madden, Gary & Jin, Zhong & Tran, Thien, 2015. "Modelling OECD broadband subscriptions in disequilibrium," Technological Forecasting and Social Change, Elsevier, vol. 90(PB), pages 476-486.
    8. Mitsuyama, Nahoko & Mitomo, Hitoshi, 2012. "Diverse paths in improving broadband availability: Deductive inference from the perspective of neo-institutional economics," 19th ITS Biennial Conference, Bangkok 2012: Moving Forward with Future Technologies - Opening a Platform for All 72546, International Telecommunications Society (ITS).
    9. Hellmann, Daniel & Chan, Jennifer & Tapia, Andrea & Maitland, Carleen F., 2015. "The potential of big data and telecommunications in the Ebola response," 2015 Regional ITS Conference, Los Angeles 2015 146338, International Telecommunications Society (ITS).
    10. Briglauer, Wolfgang & Holzleitner, Christian & Vogelsang, Ingo, 2016. "The need for more efficient public funding of new communications infrastructure in EU member states," Information Economics and Policy, Elsevier, vol. 36(C), pages 26-35.
    11. Antonio NICITA & Maria Alessandra ROSSI, 2013. "Spectrum Crunch vs. Spectrum Sharing:Exploring the 'Authorised Shared Access' Model," Communications & Strategies, IDATE, Com&Strat dept., vol. 1(90), pages 17-40, 2nd quart.
    12. Rajabiun, Reza & Middleton, Catherine A., 2013. "Multilevel governance and broadband infrastructure development: Evidence from Canada," Telecommunications Policy, Elsevier, vol. 37(9), pages 702-714.
    13. Flacher, David & Jennequin, Hugues, 2014. "Access regulation and geographic deployment of a new generation infrastructure," Telecommunications Policy, Elsevier, vol. 38(8), pages 741-759.
    14. 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.
    15. Briglauer, Wolfgang & Dürr, Niklas S. & Falck, Oliver & Hüschelrath, Kai, 2016. "Does state aid for broadband deployment in rural areas close the digital and economic divide?," ZEW Discussion Papers 16-064, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    16. Beltrán, Fernando, 2014. "Fibre-to-the-home, high-speed and national broadband plans: Tales from Down Under," Telecommunications Policy, Elsevier, vol. 38(8), pages 715-729.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:telpol:v:36:y:2012:i:5:p:382-398. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/30471/description#description .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.