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Fitting Broadband Diffusion by Cable Modem in Portugal

  • Rui Pascoal

    (Faculty of Economics University of Coimbra)

  • Jorge Marques

    (Faculty of Economics University of Coimbra)

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    The purpose of this article is to described the evolution of the number of residential subscribers of broadband fixed access by cable modem, in Portugal, on the period from 2000–2009. The pattern of evolution is estimated by fitting several models to the series, namely the following: exponential, Gompertz, Logistic, Bass and Michaelis-Menten. We fit the models to the data by nonlinear least squares, except in the exponential model where the linear version is fitted by ordinary least squares, using the internet freely available program R. This comparative study is in line with many others on the diffusion of technological innovations in the telecommunications sector, where the point is finding out if there is an early or a late take-off phenomenon. The Michaelis-Menten model is introduced for the first time in this approach. It allows to predict the later evolution in the series and reveals a qualitatively different behavior.

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    File URL: http://gemf.fe.uc.pt/workingpapers/pdf/2011/gemf_2011-20.pdf
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    Paper provided by GEMF - Faculdade de Economia, Universidade de Coimbra in its series GEMF Working Papers with number 2011-20.

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    Length: 11 pages
    Date of creation: Nov 2011
    Date of revision:
    Handle: RePEc:gmf:wpaper:2011-20
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    1. Frank M. Bass, 1969. "A New Product Growth for Model Consumer Durables," Management Science, INFORMS, vol. 15(5), pages 215-227, January.
    2. Botelho, Anabela & Pinto, L.C.Lígia Costa, 0. "The diffusion of cellular phones in Portugal," Telecommunications Policy, Elsevier, vol. 28(5-6), pages 427-437, June.
    3. V. Srinivasan & Charlotte H. Mason, 1986. "Technical Note—Nonlinear Least Squares Estimation of New Product Diffusion Models," Marketing Science, INFORMS, vol. 5(2), pages 169-178.
    4. Nunes, Flávio, 0. "Geographical gaps in the Portuguese broadband access. Rethinking the role of public funding after years of trade liberalisation," Telecommunications Policy, Elsevier, vol. 30(8-9), pages 496-515, September.
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