Internet access in the European Union and in the United States

Abstract

In Europe and the US demand for Internet access is growing rapidly. Recent data provide evidence that the gap between these regions is once again increasing. Controlling for selected structural and corporate strategic factors, this paper examines the effects of public policies towards traditional communications infrastructures on Internet access. We analyze the nexus between these variables at a qualitative and quantitative level. Based on a pooled set of data, our empirical results indicate a significant influence of policies affecting market entry and the pricing of services on Internet access. Thus, contrary to the view of the Internet as a regulation-free space, important direct and indirect effects originate from regulatory policy.