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Panel data analysis of factors of broadband services diffusion in OECD countries: Focus on deployment and migration

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  • Shinohara, S.
  • Akematsu, Y.
  • Tsuji, M.

Abstract

Deployment of broadband, particularly, FTTx, is now one of major policy objectives in many countries, including Japan, Korea, and the U.S., for example. The U.S. announced a National Broadband Plan which aimed at providing 100 million households with access to 100 Mbps broadband services by 2020. The purpose of this paper is to conduct an empirical analysis to identify factors affecting broadband service diffusion in OECD 30 member countries. In so doing, by considering the diffusion ratios of three broadband technologies, 30 countries are categorized into types, namely CATV (BB), DSL and FTTx. Then, the paper identifies the following factors which promote broadband services by an international comparison method: (1) initial conditions of Cable TV around year 2000; (2) open access obligations on copper subscriber lines; (3) relative connection speed of FTTx to DSL; and (4) business strategy of operators for investment in FTTx influence FTTx diffusion. (1) promotes CATV diffusion, (2) promotes DSL and FTTH, and (3) and (4) influence FTTH diffusion. Finally, the paper empirically verifies the above hypotheses and the migration process among three services using panel data model, which take care of the endogeneity problem using instrumental variable method. This analysis will provide an important basis for national broadband policy formulation in individual countries.

Suggested Citation

  • Shinohara, S. & Akematsu, Y. & Tsuji, M., 2011. "Panel data analysis of factors of broadband services diffusion in OECD countries: Focus on deployment and migration," 22nd European Regional ITS Conference, Budapest 2011: Innovative ICT Applications - Emerging Regulatory, Economic and Policy Issues 52157, International Telecommunications Society (ITS).
  • Handle: RePEc:zbw:itse11:52157
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    1. Mitsuhiro Kagami & Masatsugu Tsuji & Emanuele Giovannetti (ed.), 2004. "Information Technology Policy and the Digital Divide," Books, Edward Elgar Publishing, number 3114.
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    Keywords

    OECD; broadband; FTTx; DSL; CATV; migration; unbundling; collocation; panel data analysis; instrumental variable method;

    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
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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