Some Economic and Social Aspects of Residential Internet Use in Australia

Gary Madden and Scott Savage ()

Journal of Media Economics, 2000, vol. 13, issue 3, 171-185

Abstract: This study constructs a profile of the representative Australian residential Internet user from data obtained from a web-based survey. Survey data indicate the representative user is male, 20 to 40 years of age, highly educated, uses the Internet 8 hrs per week for e-mail and FTP, and has a monthly bill of AUD32. An ordered-logit model relates Internet use to price, sociodemographic and connection capacity variables. Model estimates show the probability of higher Internet use is greater for middle-income households, but declines with age of the user. Policy may be required to enhance access to lower-income groups, and to inform the elderly of the potential capabilities of the new technology. Further, model estimates suggest that Australian Internet subscribers prefer flat-rate pricing (or a combination of flat-rate and usage- sensitive pricing) over usage-sensitive pricing schemes. This result is consistent with Australian consumer attitudes toward local telephone and mobile cellular pricing.

Date: 2000
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Working Paper: Some economic and social aspects of residential internet use in Australia (2000)
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DOI: 10.1207/S15327736ME1303_2

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