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Competition, Regulation and Broadband Diffusion: the Case of New Zealand

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  • Howell, Bronwyn

Abstract

AbstractNew Zealand offers a through-provoking case study of the effects of different competition and regulatory policies on broadband diffusion rates. Despite having one of the highest rates of Internet connection and usage in the OECD widely available broadband infrastructure and low prices broadband uptake per capita languishes in the bottom third of the OECD. Whilst low uptake has typically been attributed to competition and regulatory factors associated with New Zealand's 'light-handed' regulatory regime this chapter proposes that the most likely reason is a combination of legacy demand-side regulations in particular the tariff options for voice telephony and limited value being derived by residential consumers from the small range of applications currently necessitating broadband connections. The New Zealand case illustrates the effect that legacy regulations can have on the diffusion of new technologies and indicates a need for more research on the effect of telecommunications industry regulations on demand-side uptake factors.

Suggested Citation

  • Howell, Bronwyn, 2006. "Competition, Regulation and Broadband Diffusion: the Case of New Zealand," Working Paper Series 3833, Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation.
  • Handle: RePEc:vuw:vuwcsr:3833
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    File URL: http://researcharchive.vuw.ac.nz/handle/10063/3833
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    References listed on IDEAS

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    1. de Boer, David Boles & Evans, Lewis, 1996. "The Economic Efficiency of Telecommunications in a Deregulated Market: The Case of New Zealand," The Economic Record, The Economic Society of Australia, vol. 72(216), pages 24-35, March.
    2. Dmitriy Stolyarov & Boyan Jovanovic, 2000. "Optimal Adoption of Complementary Technologies," American Economic Review, American Economic Association, vol. 90(1), pages 15-29, March.
    3. Evans, Lewis & de Boer, David Boles & Howell, Bronwyn, 2000. "The State of e-New Zealand," Working Paper Series 3908, Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation.
    4. Elhanan Helpman & Manuel Trajtenberg, 1996. "Diffusion of General Purpose Technologies," NBER Working Papers 5773, National Bureau of Economic Research, Inc.
    5. Jerry A. Hausman & J. Gregory Sidak & HalJ. Singer, 2001. "Cable Modems and DSL: Broadband Internet Access for Residential Customers," American Economic Review, American Economic Association, vol. 91(2), pages 302-307, May.
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