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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

    (ECOGE - Economie Gestion - I3 SES - Institut interdisciplinaire de l’innovation de Telecom Paris - Télécom ParisTech - I3 - Institut interdisciplinaire de l’innovation - CNRS - Centre National de la Recherche Scientifique, SES - Département Sciences Economiques et Sociales - Télécom ParisTech, IP Paris - Institut Polytechnique de Paris)

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.

Suggested Citation

  • Magali Dauvin & Lukasz Grzybowski, 2014. "Estimating broadband diffusion in the EU using NUTS 1 regional data," Post-Print hal-03399363, HAL.
    • Handle: RePEc:hal:journl:hal-03399363
    DOI: 10.1016/j.telpol.2013.05.006
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    References listed on IDEAS

    as
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    Cited by:

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    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. 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.
    6. 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.
    7. 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.

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    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

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