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The impact of tariff diversity on broadband penetration—An empirical analysis
This paper provides an empirical analysis how tariff diversity affects fixed broadband penetration. To measure tariff diversity on a country-level a detailed data set comprising over 1000 fixed-line broadband tariffs is used. An instrumental variable approach is applied to estimate demand, controlli...
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Published in: | Telecommunications policy 2016-08, Vol.40 (8), p.743-754 |
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Main Authors: | , , |
Format: | Article |
Language: | English |
Subjects: | |
Citations: | Items that this one cites Items that cite this one |
Online Access: | Get full text |
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Summary: | This paper provides an empirical analysis how tariff diversity affects fixed broadband penetration. To measure tariff diversity on a country-level a detailed data set comprising over 1000 fixed-line broadband tariffs is used. An instrumental variable approach is applied to estimate demand, controlling for various industry and socio-economic factors. Our results indicate that service-related and socio-economic factors affect broadband demand the most. An increase in tariff diversity provides a significant impetus to broadband adoption. A positive relationship is indicative of the importance of innovative pricing schemes in expediting the ascent of broadband internet access.
•Impact of tariff diversity on broadband penetration.•Country-level data base, comprising over 1000 fixed-line broadband tariffs.•Demand estimation using instrumental variables and various industry and socio-economic factors as controls.•Significant positive effect of tariff diversity on broadband adoption.•Shows the importance of innovative pricing schemes in expediting the ascent of broadband internet access. |
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ISSN: | 0308-5961 1879-3258 |
DOI: | 10.1016/j.telpol.2015.09.005 |