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A probit model of household broadband service subscription intentions: A regional analysis

Author

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  • Madden, Gary G
  • Simpson, Michael

Abstract

Much recent debate concerns the effect of carrier roll-out on access to networked services. However, whether particular groups within passed communities are unable or unwilling to subscribe to networked services is also an important policy issue. This paper sets out to identify households that are less likely to subscribe and examines whether there exists a systematic link between subscription interest and commonly accepted measures of social disadvantage. A probit regression is estimated on stated-preference subscription data obtained from a national survey of one thousand households. The results show that the potential exists for an information poor class to develop.

Suggested Citation

  • Madden, Gary G & Simpson, Michael, 1996. "A probit model of household broadband service subscription intentions: A regional analysis," MPRA Paper 10596, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:10596
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    File URL: https://mpra.ub.uni-muenchen.de/10596/1/MPRA_paper_10596.pdf
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    References listed on IDEAS

    as
    1. Bodnar & Peter Dilworth & Salvatore Iacono, Judith, 1988. "Cross-sectional analysis of residential telephone subscription in Canada," Information Economics and Policy, Elsevier, vol. 3(4), pages 355-378.
    2. Madden, Gary, 1995. "Experimentation in Economics: An Overview of the Stated-Preference Experimental Design Method," Australian Economic Papers, Wiley Blackwell, vol. 34(64), pages 120-135, June.
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    Cited by:

    1. Pereira, Pedro & Ribeiro, Tiago, 2011. "The impact on broadband access to the Internet of the dual ownership of telephone and cable networks," International Journal of Industrial Organization, Elsevier, vol. 29(2), pages 283-293, March.
    2. Fildes, Robert & Kumar, V., 2002. "Telecommunications demand forecasting--a review," International Journal of Forecasting, Elsevier, vol. 18(4), pages 489-522.
    3. Hitt, Lorin & Tambe, Prasanna, 2007. "Broadband adoption and content consumption," Information Economics and Policy, Elsevier, vol. 19(3-4), pages 362-378, October.

    More about this item

    Keywords

    Broadband delivered services; Network coverage; Subscription interest; Information poverty;

    JEL classification:

    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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