Catching-Up in Broadband Regressions: Does Local Loop Unbundling Policy Lead to Material Increases in OECD Broadband Uptake?

Wei Zhang, Glenn Boyle and Bronwyn Howell

No 19092, Working Paper Series from Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation

Abstract: Local loop unbundling has been widely promulgated by policy-makers as a significant factor stimulating broadband uptake and therefore an essential component of a developing 'information economy'. Whilst empirical evidence is sparse and at best equivocal in respect of a consistent positive and statistically significant effect a recent study commissioned and published by the OECD does find evidence of such effects. When correcting for omitted variables correlated data and methodological inconsistencies our analysis using the models and data from this report instead support the contention that LLU's contribution to the level of national broadband uptake is materially very small and not statistically significant. Continued advocacy for the policy as a stimulant for broadband uptake on the basis of the OECD-published report is misguided.

Date: 2008
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Persistent link: https://EconPapers.repec.org/RePEc:vuw:vuwcsr:19092

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