IDEAS home Printed from https://ideas.repec.org/p/hal/journl/hal-01410614.html
   My bibliography  Save this paper

Estimating broadband diffusion in the EU using NUTS 1 regional data

Author

Listed:
  • Magali Dauvin

    (EconomiX - EconomiX - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique)

  • Lukasz Grzybowski

Abstract

In this paper we use panel data on NUTS 1 regional data for 27 EU countries in the years 2006–2010 to analyze determinants of broadband diffusion. We estimate both linear demand specification and the logistic diffusion function. We find that, after controlling for regional differences due to socioeconomic factors, inter-platform competition approximated by an inter-platform Herfindahl index has a significant positive impact on broadband diffusion. Broadband deployment is lower in countries in which DSL has a greater share in Internet access and it is higher in countries in which cable modem has a greater share in Internet access. Moreover, we find that competition between DSL providers has a significant and positive impact on broadband penetration. First, higher prices for a fully unbundled local loop connection, which represent the cost of providing copper-based Internet services, have a significant and negative impact on broadband penetration. Second, a greater incumbent share in DSL connections has a significant and negative impact on broadband penetration.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Magali Dauvin & Lukasz Grzybowski, 2014. "Estimating broadband diffusion in the EU using NUTS 1 regional data," Post-Print hal-01410614, HAL.
    • Handle: RePEc:hal:journl:hal-01410614
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Lee, Sangwon & Marcu, Mircea & Lee, Seonmi, 2011. "An empirical analysis of fixed and mobile broadband diffusion," Information Economics and Policy, Elsevier, vol. 23(3), pages 227-233.
    2. 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).
    3. Sangwon Lee & Justin S. Brown, 2008. "The Diffusion of Fixed Broadband: An Empirical Analysis," Working Papers 08-19, NET Institute, revised Sep 2008.
    4. Gruber, Harald & Verboven, Frank, 2001. "The diffusion of mobile telecommunications services in the European Union," European Economic Review, Elsevier, vol. 45(3), pages 577-588, March.
    5. Bouckaert, Jan & van Dijk, Theon & Verboven, Frank, 2010. "Access regulation, competition, and broadband penetration: An international study," Telecommunications Policy, Elsevier, vol. 34(11), pages 661-671, December.
    6. Nina Czernich & Oliver Falck & Tobias Kretschmer & Ludger Woessmann, 2011. "Broadband Infrastructure and Economic Growth," Economic Journal, Royal Economic Society, vol. 121(552), pages 505-532, May.
    7. Mario Denni & Harald Gruber, 2006. "The diffusion of broadband telecommunications: the role of competition," Departmental Working Papers of Economics - University 'Roma Tre' 0060, Department of Economics - University Roma Tre.
    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. Rendon Schneir, Juan & Xiong, Yupeng, 2016. "A cost study of fixed broadband access networks for rural areas," Telecommunications Policy, Elsevier, vol. 40(8), pages 755-773.
    2. Joan Calzada & Begoña García-Mariñoso & Jordi Ribé & Rafael Rubio & David Suárez, 2018. "Fiber deployment in Spain," Journal of Regulatory Economics, Springer, vol. 53(3), pages 256-274, June.
    3. Grzybowski, Lukasz & Hasbi, Maude & Liang, Julienne, 2018. "Transition from copper to fiber broadband: The role of connection speed and switching costs," Information Economics and Policy, Elsevier, vol. 42(C), pages 1-10.
    4. Marco Lorenzetti & Nicola Matteucci, 2016. "La copertura digitale del territorio rurale: un?analisi sui comuni marchigiani," ECONOMIA E SOCIET? REGIONALE, FrancoAngeli Editore, vol. 2016(2), pages 92-112.
    5. Phansatarn, Thunwar & Srinuan, Chalita, 2024. "Analysis of Thailand's fixed broadband internet services demand: A merger screening of AIS and 3BB," Telecommunications Policy, Elsevier, vol. 48(2).
    6. Carthy, Philip & Lunn, Pete & Lyons, Sean, 2018. "Demographic variation in active consumer behaviour: Who searches most for retail broadband services?," MPRA Paper 90366, University Library of Munich, Germany.
    7. Joan Calzada & Fernando Martínez-Santos, 2016. "Pricing strategies and competition in the mobile broadband market," Journal of Regulatory Economics, Springer, vol. 50(1), pages 70-98, August.
    8. Neokosmidis, Ioannis & Avaritsiotis, Nikolaos & Ventoura, Zoe & Varoutas, Dimitris, 2015. "Assessment of the gap and (non-)Internet users evolution based on population biology dynamics," Telecommunications Policy, Elsevier, vol. 39(1), pages 14-37.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mirjam R. J. Lange, 2017. "Tariff diversity and competition policy: drivers for broadband adoption in the European Union," Journal of Regulatory Economics, Springer, vol. 52(3), pages 285-312, December.
    2. Haucap, Justus & Heimeshoff, Ulrich & Lange, Mirjam R. J., 2014. "The impact of tariff diversity on broadband diffusion: An empirical analysis," 25th European Regional ITS Conference, Brussels 2014 101403, International Telecommunications Society (ITS).
    3. Wolfgang Briglauer, 2014. "The impact of regulation and competition on the adoption of fiber-based broadband services: recent evidence from the European union member states," Journal of Regulatory Economics, Springer, vol. 46(1), pages 51-79, August.
    4. Haucap, Justus & Heimeshoff, Ulrich & Lange, Mirjam R.J., 2016. "The impact of tariff diversity on broadband penetration—An empirical analysis," Telecommunications Policy, Elsevier, vol. 40(8), pages 743-754.
    5. 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).
    6. Prieger, James E., 2013. "The broadband digital divide and the economic benefits of mobile broadband for rural areas," Telecommunications Policy, Elsevier, vol. 37(6), pages 483-502.
    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. Briglauer, Wolfgang & Gugler, Klaus, 2013. "The deployment and penetration of high-speed fiber networks and services: Why are EU member states lagging behind?," Telecommunications Policy, Elsevier, vol. 37(10), pages 819-835.
    9. Calzada, Joan & Martínez-Santos, Fernando, 2014. "Broadband prices in the European Union: Competition and commercial strategies," Information Economics and Policy, Elsevier, vol. 27(C), pages 24-38.
    10. 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.
    11. Bacha, Radia & Gasmi, Farid, 2022. "The broadband diffusion process and its determinants in Algeria: A simultaneous estimation," TSE Working Papers 22-1309, Toulouse School of Economics (TSE).
    12. Götz, Georg, 2013. "Competition, regulation, and broadband access to the internet," Telecommunications Policy, Elsevier, vol. 37(11), pages 1095-1109.
    13. Barun, Tereza, 2019. "Fixed Internet Access Regulatory Framework and its Influence on Firm's Strategic Decision Making," 7th International OFEL Conference on Governance, Management and Entrepreneurship: Embracing Diversity in Organisations (Dubrovnik, 2019), in: 7th International OFEL Conference on Governance, Management and Entrepreneurship: Embracing Diversity in Organisations. April 5th - 6th, 2019, Dubrovn, pages 298-318, Governance Research and Development Centre (CIRU), Zagreb.
    14. Klein, Gordon J. & Wendel, Julia, 2014. "The impact of local loop and retail unbundling," 20th ITS Biennial Conference, Rio de Janeiro 2014: The Net and the Internet - Emerging Markets and Policies 106845, International Telecommunications Society (ITS).
    15. Winkler, Kay, 2014. "Potential Effects of New Zealand's Policy on Next Generation High-Speed Access Networks," Working Paper Series 4347, Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation.
    16. Briglauer, Wolfgang & Gugler, Klaus, 2018. "Go for gigabit? First evidence on economic benefits of (ultra-)fast broadband technologies in Europe," ZEW Discussion Papers 18-020, ZEW - Leibniz Centre for European Economic Research.
    17. Jinsoo Bae & Yun Jeong Choi & Jong-Hee Hahn, 2014. "Fixed and mobile broadband; Are they substitutes or complements?," Working papers 2014rwp-68, Yonsei University, Yonsei Economics Research Institute.
    18. Briglauer, Wolfgang & Dürr, Niklas & Gugler, Klaus, 2021. "A retrospective study on the regional benefits and spillover effects of high-speed broadband networks: Evidence from German counties," International Journal of Industrial Organization, Elsevier, vol. 74(C).
    19. Fageda, Xavier & Rubio-Campillo, Rafael & Termes-Rifé, Montserrat, 2014. "Determinants of broadband access: Is platform competition always the key variable to success?," Information Economics and Policy, Elsevier, vol. 26(C), pages 58-67.
    20. Georges V. Houngbonon & Erwan Le Quentrec & Stefania Rubrichi, 2021. "Access to electricity and digital inclusion: evidence from mobile call detail records," Palgrave Communications, Palgrave Macmillan, vol. 8(1), pages 1-11, December.

    More about this item

    JEL classification:

    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation

    Statistics

    Access and download statistics

    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:hal:journl:hal-01410614. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.