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The impact of regulation and competition on the adoption of fibre-based broadband services: Recent evidence from the European Union member states

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  • Briglauer, Wolfgang

Abstract

Fibre deployment of next-generation high-speed broadband networks is considered to be a decisive development for any information-based society, yet investment activities and especially the adoption of fibre-based broadband services take place only very gradually in most countries. This work employs static and dynamic model specifications and identifies the most important determinants of the adoption of fibre-based broadband services with recent panel data from the European Union member states for the years from 2004 to 2012. The results show that the more effective previous broadband access regulation is, the more negative the impact on adoption, while competitive pressure from mobile networks affects adoption in a non-linear manner. It appears that the approach of strict cost-based access regulation embedded in the EU regulatory framework is at odds with the targets outlined in the European Commission's Digital Agenda. Finally, we also find evidence for substantial network effects underlying the adoption process.

Suggested Citation

  • Briglauer, Wolfgang, 2013. "The impact of regulation and competition on the adoption of fibre-based broadband services: Recent evidence from the European Union member states," 24th European Regional ITS Conference, Florence 2013 88494, International Telecommunications Society (ITS).
  • Handle: RePEc:zbw:itse13:88494
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    Cited by:

    1. Briglauer, Wolfgang & Holzleitner, Christian, 2014. "Efficient contracts for government intervention in promoting next generation communications networks," ZEW Discussion Papers 14-022, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    2. Haucap, Justus & Heimesho, Ulrich & Lange, Mirjam R. J., 2014. "The impact of tariff diversity on broadband diffusion: An empirical analysis," 20th ITS Biennial Conference, Rio de Janeiro 2014: The Net and the Internet - Emerging Markets and Policies 106898, International Telecommunications Society (ITS).
    3. Joan Calzada & Begoña García-Mariñoso & Jordi Ribé & Rafael Rubio & David Suárez, 2018. "Fiber deployment in Spain," Journal of Regulatory Economics, Springer, vol. 53(3), pages 256-274, June.
    4. Briglauer Wolfgang & Frübing Stefan & Vogelsang Ingo, 2014. "The Impact of Alternative Public Policies on the Deployment of New Communications Infrastructure – A Survey," Review of Network Economics, De Gruyter, vol. 13(3), pages 227-270, September.
    5. Briglauer, Wolfgang & Gugler, Klaus, 2013. "The deployment and penetration of high-speed fiber networks and services: Why are EU member states lagging behind?," Telecommunications Policy, Elsevier, vol. 37(10), pages 819-835.
    6. Cave, Martin, 2014. "The ladder of investment in Europe, in retrospect and prospect," Telecommunications Policy, Elsevier, vol. 38(8), pages 674-683.
    7. Wolfgang Briglauer, 2015. "How EU sector-specific regulations and competition affect migration from old to new communications infrastructure: recent evidence from EU27 member states," Journal of Regulatory Economics, Springer, vol. 48(2), pages 194-217, October.
    8. Oughton, Edward J., 2016. "Studying the Costs of Fibre Deployment in Fixed Broadband Access Infrastructure: Evidence from the UK's National Needs Assessment," 27th European Regional ITS Conference, Cambridge (UK) 2016 148695, International Telecommunications Society (ITS).
    9. Briglauer, Wolfgang, 2014. "The impact of regulation and competition on the migration from old to new communications infrastructure: Recent evidence from EU27 member states," ZEW Discussion Papers 14-085, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    10. repec:rsr:supplm:v:65:y:2017:i:9:p:55-61 is not listed on IDEAS
    11. Levin, Stanford Lee & Schmidt, Stephen & Scott, Graham, 2015. "Broadband for all: Policies for a connected society," 2015 Regional ITS Conference, Los Angeles 2015 146346, International Telecommunications Society (ITS).
    12. Briglauer, Wolfgang & Cambini, Carlo & Melani, Sauro, 2016. "How to fill the digital gap? The (limited) role of regulation," ZEW Discussion Papers 16-002, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    13. Lange, Mirjam R. J., 2017. "Tariff diversity and competition policy: Drivers for broadband adoption in the European Union," DICE Discussion Papers 262, University of Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    14. Vogelsang Ingo, 2013. "The Endgame of Telecommunications Policy? A Survey," Review of Economics, De Gruyter, vol. 64(3), pages 193-270, December.
    15. I. Vogelsang, 2015. "Will the U.S. and EU telecommunications policies converge? A survey," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 42(2), pages 117-155, June.
    16. repec:kap:regeco:v:52:y:2017:i:3:d:10.1007_s11149-017-9344-8 is not listed on IDEAS
    17. Johannes M. Bauer & Michael Latzer, 2016. "The economics of the Internet: an overview," Chapters,in: Handbook on the Economics of the Internet, chapter 1, pages 3-20 Edward Elgar Publishing.
    18. Bastianin, Andrea & Castelnovo, Paolo & Florio, Massimo, 2017. "The empirics of regulatory reforms proxied by categorical variables: recent findings and methodological issues," MPRA Paper 78256, University Library of Munich, Germany.
    19. Briglauer, Wolfgang & Gugler, Klaus, 2018. "Go for gigabit? First evidence on economic benefits of (ultra-)fast broadband technologies in Europe," ZEW Discussion Papers 18-020, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    20. Bertschek, Irene & Briglauer, Wolfgang & Hüschelrath, Kai & Krämer, Jan & Frübing, Stefan & Kesler, Reinhold & Saam, Marianne, 2016. "Metastudie zum Fachdialog Ordnungsrahmen für die Digitale Wirtschaft: Im Auftrag des Bundesministeriums für Wirtschaft und Energie (BMWi)," ZEW Expertises, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research, number 147040, October.
    21. Briglauer, Wolfgang & Cambini, Carlo & Melani, Sauro, 2016. "How to Fill the Digital Gap? The (Limited) Role of Regulation," Annual Conference 2016 (Augsburg): Demographic Change 145480, Verein für Socialpolitik / German Economic Association.
    22. repec:eee:iepoli:v:42:y:2018:i:c:p:1-10 is not listed on IDEAS
    23. Briglauer, Wolfgang & Cambini, Carlo & Fetzer, Thomas & Hüschelrath, Kai, 2017. "The European electronic communications code: A critical appraisal with a focus on incentivizing investment in next generation broadband networks," ZEW Discussion Papers 17-027, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    24. Dorothee Bär & Peter Knauth & Wilhelm Eschweiler & Wolfgang Kopf & Valentina Daiber & Wilhelm Dresselhaus & Iris Henseler-Unger & Christian Wernick & Justus Haucap & Ulrich Heimeshoff & Mirjam Lange &, 2016. "Wie viel ist genug? Breitbandausbau in Deutschland," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 69(20), pages 03-28, October.

    More about this item

    Keywords

    Next-generation telecommunications networks; regulation; competition; adoption; network effects;

    JEL classification:

    • H5 - Public Economics - - National Government Expenditures and Related Policies
    • L38 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Public Policy
    • L43 - Industrial Organization - - Antitrust Issues and Policies - - - Legal Monopolies and Regulation or Deregulation
    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods

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