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Advanced communications policy and adoption in rural Western Australia


  • Madden, Gary G
  • Savage, Scott J
  • Coble-Neal, Grant
  • Bloxham, Paul


Recent moves toward contestable universal service markets for rural areas raises issues of measuring the net cost of service provision. Measurement of net cost requires estimates of latent demand for advanced communications. This paper seeks for the first time to provide quantitative estimates of the magnitude of latent income pools available to carriers in rural WA. Estimates of latent expenditure on broadband services in rural WA are obtained using a combination of stated-preference and survey data. These expenditures increase with computer ownership, community isolation and information need. Further, the statistical model supports the commonly held belief that more distant populations have stronger information demands and are willing to pay for services. This finding suggests that carrier aversion to providing services to rural regions may not be justified on commercial grounds.

Suggested Citation

  • Madden, Gary G & Savage, Scott J & Coble-Neal, Grant & Bloxham, Paul, 2000. "Advanced communications policy and adoption in rural Western Australia," MPRA Paper 11163, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:11163

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    References listed on IDEAS

    1. anonymous, 1982. "Communication," Management Science, INFORMS, vol. 28(11), pages 1350-1351, November.
    2. Cronin, Francis J. & Colleran, Elisabeth K. & Herbert, Paul L. & Lewitzky, Steven, 1993. "Telecommunications and growth : The contribution of telecommunications infrastructure investment to aggregate and sectoral productivity," Telecommunications Policy, Elsevier, vol. 17(9), pages 677-690, December.
    3. Weller, Dennis, 1999. "Auctions for universal service obligations," Telecommunications Policy, Elsevier, vol. 23(9), pages 645-674, October.
    4. anonymous, 1982. "Communication," Management Science, INFORMS, vol. 28(3), pages 337-337, March.
    5. Peha, Jon M., 1999. "Tradable universal service obligations," Telecommunications Policy, Elsevier, vol. 23(5), pages 363-374, June.
    6. 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.
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    Cited by:

    1. Madden, Gary & Coble-Neal, Grant, 0. "Internet use in rural and remote Western Australia," Telecommunications Policy, Elsevier, vol. 27(3-4), pages 253-266, April.
    2. James E. Prieger, 2003. "The Supply Side of the Digital Divide: Is There Equal Availability in the Broadband Internet Access Market?," Economic Inquiry, Western Economic Association International, vol. 41(2), pages 346-363, April.
    3. Adamides, George & Stylianou, Andreas & Kosmas, Petros C. & Apostolopoulos, Constantinos D., 2013. "Factors Affecting PC and Internet Usage by the Rural Population of Cyprus," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 14(1), January.
    4. Kanothi, R.N., 2009. "The dynamics of entrepreneurship in ICT: case of mobile phones downstream services in Kenya," ISS Working Papers - General Series 18727, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.
    5. Michael Demoussis & Nicholas Giannakopoulos, 2006. "Facets of the digital divide in Europe: Determination and extent of internet use," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 15(3), pages 235-246.

    More about this item


    Advanced communications; broadband service; internet rural access; universal service obligations;

    JEL classification:

    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications


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