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

Justus Haucap, Ulrich Heimesho and Mirjam Lange (mirjam.lange@aol.com)

20th ITS Biennial Conference, Rio de Janeiro 2014: The Net and the Internet - Emerging Markets and Policies from International Telecommunications Society (ITS)

Abstract: This paper provides an empirical analysis how tariff diversity aspects fixed-line broad-band uptake, utilizing a new data set with 1497 fixed-line and 2158 mobile broad-band 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 diver-sity 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 diver-sity 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)
Date: 2014
New Economics Papers: this item is included in nep-ict and nep-net
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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Related works:
Working Paper: The impact of tariff diversity on broadband diffusion: An empirical analysis (2014)
Working Paper: The impact of tariff diversity on broadband diffusion: An empirical analysis (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:itsb14:106898

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