An analysis of the determinants of broadband access

This paper extends the analysis of the relative impacts of socioeconomic factors on households’ decision to subscribe to dialup Internet access [Chaudhuri, A., Flamm, K., & Horrigan, J. (2005). An analysis of the determinants of Internet access, presented at the Telecommunications Policy Researc...

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Bibliographic Details
Published in:Telecommunications policy 2007-07, Vol.31 (6), p.312-326
Main Authors: Flamm, Kenneth, Chaudhuri, Anindya
Format: Article
Language:English
Subjects:
Access
Broadband
Broadband networks
Communications technology
Decision making
Dialup
Digital divide
Impact analysis
Internet
Internet access
Price elasticity
Pricing
Socioeconomic factors
Studies
Telecommunications
Telecommunications policy
Willingness to pay
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Summary:This paper extends the analysis of the relative impacts of socioeconomic factors on households’ decision to subscribe to dialup Internet access [Chaudhuri, A., Flamm, K., & Horrigan, J. (2005). An analysis of the determinants of Internet access, presented at the Telecommunications Policy Research Conference, Washington, DC, October 1–3] to the decision to subscribe to broadband. A simple cumulative utility (ordered logit) model is rejected in favor of a partial proportional odds model, and the authors found that the decision to purchase any access at all, and the decision to upgrade to broadband, may be affected differently by various socioeconomic factors. The own-price elasticity of broadband demand is statistically significant and has a substantial coefficient value. The cross-price sensitivity of broadband demand with respect to dialup price is also statistically significant, and supports the notion of the two services being substitutes.
ISSN:0308-5961
1879-3258
DOI:10.1016/j.telpol.2007.05.006