Abstract
As the French government has adopted a large broadband development strategy mainly trough FTTH technologies, estimating the demand for broadband is necessary from a policy recommendation perspective. This paper uses data from a nationwide survey conducted yearly between 2007 and 2017 to analyze the demand for residential broadband. We estimate a discrete choice model in order to measure willingness-to-pay (WTP) by using individual-level sociodemographic characteristics. Results suggest that average WTP increased between 2007 and 2013 thanks to the enhancement of Internet speed before it leveled off. We estimate consumer surplus over the last decade and perform a counterfactual analysis. We show that the introduction of FTTH benefits the consumers and the additional aggregate consumer surplus for the whole French population is about 128.65 millions euros for 2017.
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