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A Snapshot of the Current State of Residential Broadband Networks

Author

Listed:
  • Jacob Malone

    () (University of Georgia, Department of Economics, 310 Herty Drive, 535 Brooks Hall, Athens GA 30602)

  • Aviv Nevo

    () (Northwestern University, Department of Economics, 2001 Sheridan Road, Evanston, IL 60208)

  • Jonathan Williams

    () (University of North Carolina - Chapel Hill, Department of Economics, 141 South Road, Gardner Hall 107, CB# 3305, Chapel Hill, NC 27599)

Abstract

The way in which consumers use the Internet is changing rapidly, and over-the-top video services (OTTV) are a major contributor to this trend. The dramatic rise of OTTV services has led to major changes in the telecommunications sector and greater attention to several important and ongoing public policy debates. We provide an essential component to inform these policy debates: an in-depth descriptive analysis of the rapidly changing way in which consumers use the Internet from a representative sample of consumers. At the core of our contribution are unique data from the spring and summer of 2015 that we acquired from a North American ISP that provides detailed disaggregated high-frequency information on individuals’ Internet usage. We provide insight into temporal patterns in usage within the day, measure persistence in the level and composition of usage across days, and contrast usage patterns for consumers that subscribe to traditional pay TV services (i.e., purchase a bundle of services from the operator) to those that do not. We also present results on how the level and composition of usage for a consumer changes immediately after “cutting the cord” and dropping traditional linear TV service.

Suggested Citation

  • Jacob Malone & Aviv Nevo & Jonathan Williams, 2015. "A Snapshot of the Current State of Residential Broadband Networks," Working Papers 15-06, NET Institute.
  • Handle: RePEc:net:wpaper:1506
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    File URL: http://www.netinst.org/Malone_Nevo_Williams_15-06.pdf
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    More about this item

    Keywords

    Residential Broadband; Demand; Net Neutrality; Usage-based Pricing; Municipal Broadband; Cord Cutting;

    JEL classification:

    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

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