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The impact of tariff diversity on broadband diffusion: An empirical analysis

Justus Haucap (), Ulrich Heimeshoff and Mirjam Lange ()

No 156, DICE Discussion Papers from University of Düsseldorf, Düsseldorf Institute for Competition Economics (DICE)

Abstract: This paper provides an empirical analysis how tariff diversity affects fixed-line broadband uptake, utilizing a new data set with 1497 fixed-line and 2158 mobile broadband tariffs from 91 countries across the globe. An instrumental variable approach is applied to estimate demand, controlling for various industry and socio-economic factors. The empirical results indicate that, firstly, lower prices, more tariff diversity and higher income increase broadband penetration. Secondly, inter-platform competition and mobile broadband prices are not found to have a significant effect on fixed-line broadband penetration. This suggests that low prices and the diversity of broadband offerings are more important drivers of fixed broadband adoption than competition between various technologies (cable networks, fixed-line telephone networks, mobile networks).

Keywords: Broadband prices; Tariff diversity; Broadband demand; Broadband penetration; Broadband uptake; Price discrimination; Inter-platform competition (search for similar items in EconPapers)
JEL-codes: L86 L96 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ict and nep-net
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6) Track citations by RSS feed

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https://www.econstor.eu/bitstream/10419/100086/1/792513711.pdf (application/pdf)

Related works:
Working Paper: The impact of tariff diversity on broadband diffusion: An empirical analysis (2014) Downloads
Working Paper: The impact of tariff diversity on broadband diffusion: An empirical analysis (2014) Downloads
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