Broadband Adoption Research Articles

Bridging digital divides in Wisconsin: an examination of policy efforts and effectiveness over the past five years

ABSTRACT The digital divide, generally characterized by unequal Internet access, represents the gap between individuals who benefit from the use of digital technologies and those who do not. Many social inequalities are associated with the prevalence of the digital divide, particularly across the rural-urban divide. This research seeks to characterize the status of the digital divide, and related sociodemographic variables, within the context of the US state of Wisconsin. In addition, this research investigates the effectiveness of broadband expansion grants, within the state of Wisconsin, on bridging the digital divide. The findings indicate that, at the county level, variations in education, household income, age, and location on a rural-urban continuum are all associated with variations in county broadband adoption rates. Also, despite increasing broadband funding, the amount of money sent to a county is not associated with the need of that county or the change in county level broadband adoption rates from the year 2017–2021. The findings of this study have theoretical implications as they add to our understanding of how broadband adoption is related to social aspects of life. In addition, there are political implications in terms of how grant funding allocation is determined.

Willingness to pay for broadband: A case study of Wisconsin

As broadband expansion efforts in the U.S. continue with historic investments, consumer demand for residential broadband services is of first-order importance. Several past broadband willingness to pay studies estimate the value of broadband to be low, compared to the current national average cost of internet subscriptions being around $65 per month. Additional estimates of household's willingness to pay for broadband are needed to provide more insight into how much households value these services and what type of support would be most efficient in increasing broadband adoption to close the digital divide. These estimates are helpful for policymakers, internet service providers, and community leaders working on broadband subsidy programs, trying to bring ISPs to communities, and setting service prices. Using choice experiment data from a 2022 broadband survey in Wisconsin, I find households are willing to pay $45-$334 per month to go from not having internet at home to having speeds between 25 Mbps and 1,000 Mbps and are willing to pay $10-$38 for greater reliability, depending on household income level. While consumers are willing to pay more for speed than reliability, the value consumers place on speed is diminishing. Connection is valuable to people, but getting connected at a much faster speed is not seen as worth a lot more. These estimates suggest households place a high value on home internet and are willing to pay at least, if not more, than prices already available on the market in many places.

Broadband access and agritourism operations in the United States

AbstractAn online presence is crucial for agritourism operators to connect with consumers. In this study, we use count data regression models to examine the correlation between average broadband speed adopted and the number of agritourism operations. We found that adoption of fast broadband in 2012 was associated with a significantly higher number of agritourism operations nationally in 2017, underscoring the role of broadband connectivity in facilitating interactions between farmers and consumers, as well as in promoting agritourism. However, only a weak association exists in rural counties, indicating that the broadband–agritourism relationship does not extend to less populated areas.

Socioeconomic benefits of high-speed broadband availability and service adoption: A survey

Ubiquitous high-speed fiber-based and mobile broadband availability is a key economic policy goal in the European Union and other developed countries. Policymakers seek to boost economic growth, productivity, and employment, especially in remote areas, through ambitious broadband targets and substantial public funding. This paper reviews the existing (empirical) literature on high-speed broadband Internet and its socioeconomic impact on key outcome variables. Our main findings are that (i) the socioeconomic benefits in terms of economic growth, productivity, house prices, and education, as well as economic resilience, are high but are also subject to diminishing returns beyond a certain broadband quality level, (ii) the effects on employment are more ambiguous, (iii) the positive socioeconomic effects take hold only after broadband adoption on the demand side, but not with mere availability on the supply side, and (iv) the effects of broadband differ significantly for urban vs. rural and high-skilled vs. low-skilled workers for some of the outcome variables. Based on these findings, we develop recommendations for a cost-effective and efficient broadband policy and identify an agenda for research.

Understanding uptake in demand-side broadband subsidy programs: The affordable connectivity program case

The Affordable Connectivity Program (ACP) represents a historic investment by the federal government to address the digital divide. Its goals are both to increase the rate of broadband adoption and make it easier for low-income households to sustain service. But what have been the drivers of ACP enrollment? We know a great deal about trends in adoption and the geography of enrollment among eligible households. But those metrics – especially a focus on enrollment rates among eligible households – are only so useful in explaining ACP sign-ups.This invites analysis that investigates the drivers of ACP enrollment in a comprehensive way, which this paper proposes to do. The paper hypothesizes that ACP enrollment decisions are not solely individual (i.e., that a household's enrollment decision is structured only by income level), but also influenced by community-wide considerations, such as housing costs, share of occupied houses, presence of anchor institutions such as public libraries, and population density (i.e., whether a place is urban or rural). The paper develops a regression model that predicts ACP enrollment rates among eligible households at the 5-digit zip code geography as a function of the variables discussed above, as well as others such as the racial and ethnic make-up of a zip code area. The analysis also controls for existing levels of broadband subscriptions and computer ownership in a given area. The difference between predicted and actual ACP enrollment rates at the 5-digit zip code level is proposed as a metric of ACP performance. These findings are supplemented with a geographically weighted regression (GWR) model that allows the relationship between each explanatory variable and ACP enrollment to vary by locality. This allows for analyzing and visualizing how these relationships vary across space.The empirical findings show that high levels of economic distress are a strong determinant of ACP enrollment in a given area, but social and community-wide indicators are important as well. The GWR results demonstrate that important differences in these relationships exist across geographies. Understanding spatial variations in ACP performance can help policymakers and other stakeholders better target resources to address the digital divide.

Analysis of rural broadband adoption dynamics: A theory-driven agent-based model

Analysis of rural broadband adoption dynamics: A theory-driven agent-based model

The role of Video on Demand in stimulating broadband adoption

In this paper we study the role of Video on Demand services (VOD) as drivers of broadband adoption. While the research literature has highlighted the importance of digital content, such as applications and Internet platforms, as a driver of broadband adoption, no studies have yet explored the specific contribution of VOD. We developed a worldwide database of VOD services launch by country since 2012 (including Netflix, Amazon Prime, Apple TV+, Disney+, Paramount+, and HBO Max) and explored their contribution as contributors to broadband adoption during the period. To do so, we relied on several empirical specifications including instrumental variables to control for reverse causality between broadband adoption and VOD services availability. Our results confirm that VOD services have been a key contributor to the increase of broadband connectivity, also helping to narrow down the digital divide especially in developing nations. In addition, VOD service offers have been associated with the gradual increase in the purchasing of broadband higher speed plans. Finally, there is a significant and positive increase in consumer surplus associated with the launch of VOD offers. This evidence points to the impact of VOD services on the digital economy as a stimulus for consumer acquisition of broadband services and therefore as a contributor to the revenues of broadband service providers.

A PROVINCE-LEVEL CONFIGURATIONAL ANALYSIS OF FIXED AND MOBILE BROADBAND ADOPTION

ABSTRACT Understanding the factors that influence broadband adoption has been an important quest for academics and stakeholders involved in broadband planning and deployment as broadband connectivity has become increasingly important for connecting people and communities to economic, social, educational and employment opportunities. Rather than examining the independent effects of explanatory factors, this study investigates complex interactions of key factors linked to high broadband adoption. Employing a fuzzy-set qualitative comparative analysis (fsQCA) and using data from 81 Turkish provinces in 2020, the study identifies four sufficient configurations for high fixed broadband adoption and five sufficient configurations for high mobile broadband adoption; only one of them is shared by both broadband types. The study complements fsQCA results with Necessary Condition Analysis (NCA) and identifies three necessary conditions for high fixed broadband adoption and no necessary condition for high mobile broadband adoption. This study identifies complex non-linear configurations linked to high fixed and mobile broadband adoption, reveals differences between fixed and mobile broadband in terms of adoption mechanisms and draws attention to the geographical disparities in broadband connectivity.

Global Well-Being and Mental Health in the Internet Age

In the last 2 decades, the widespread adoption of Internet technologies has inspired concern that they have negatively affected mental health and psychological well-being. However, research on the topic is contested and hampered by methodological shortcomings, leaving the broader consequences of Internet adoption unknown. We show that the past 2 decades have seen only small and inconsistent changes in global well-being and mental health that are not suggestive of the idea that the adoption of Internet and mobile broadband is consistently linked to negative psychological outcomes. Further investigation of this topic requires transparent study of online behaviors where they occur (i.e., on online platforms). We call for increased collaborative efforts between independent scientists and the Internet-technology sector.

Business Sensitivity Options of Carrier Aggregation Strategies: A Simulation Model for 4G Deployment in Emerging Countries

Indonesia’s growing population increasingly relies on 4G networks, presenting challenges for the Ministry managing mobile broadband adoption. There are severe data network congestion problems in metropolitan areas, particularly Jakarta, Indonesia’s capital city. Urgent action is required to address infrastructure and capacity limitations and maintain reliable connectivity. Carrier aggregation (CA) may alleviate bottlenecks by giving users higher bandwidth, throughput, and data rates. This research examined the techno-economic aspects of using 2.1 GHz CA versus non-CA in an urban region of North Jakarta. CA required fewer eNodeB and performed better on key performance indicators like received signal power, signal-to-noise ratio, and throughput. Cellular operators also saw faster investment returns with CA. CA’s performance and economic benefits make it a promising solution for Indonesia’s 4G network congestion.

Mapping digital ecosystem for competitive advantage using technological advancements

‘Digital Ecosystem’ is the interdependence of computer software, hardware, and digital services that play a significant role in fulfilling the organization’s objectives. It is a convergence of recent broadband adoption and technological advancement that has pushed the state-of-the-art technologies, and industrial commerce into a flux, for greater market penetration. One of the most significant advantages of the Digital Ecosystem includes mapping of consumer interest (with product or services) to gain a competitive advantage in the market. The research presents various tangible and intangible benefits received by the organization with the help of the Digital Ecosystem. In the future, customers are likely to align their buying behavior based on ‘Digital Ecosystems’ they prefer. The variables involved in buying behavior are complex as well as difficult to measure; hence the qualitative approach has been followed to integrate various aspects of the proposed study. This research is significant because the ‘Digital Ecosystem’ can be a part of a business strategy that can gauge customer requirements, enhance customer experience, and retain customer loyalty.

Factors Associated with Reliance on Audio-Only Technology (Telephone) for Completion of Telepsychiatry Visits.

Introduction: The ability to access telepsychiatry through audio-video technology versus audio-only (telephone) technology potentially leads to inequitable outcomes. This study examines the characteristics of patients who relied on the telephone to complete outpatient telepsychiatry visits in a large health system. Methods: This is a retrospective analysis of all telepsychiatry outpatient visits conducted from May 1, 2020, to December 31, 2021. Demographic, clinical, and socioeconomic factors were extracted from the electronic health record. Two-sample t tests were used for continuous variables and χ2 tests for categorical variables for bivariate analyses. Multiple logistic regression was used to examine the association between only telephone visits and all input variables. Results: Eight hundred ninety-four (8.9%) patients completed all visits only by telephone during the study period. In bivariate analyses, factors associated with telephone-only visits included male sex, non-English primary language, Black race, unmarried status, non-Hispanic ethnicity, older age, Medicare enrollment, uninsured status, and higher social vulnerability index (SVI). Psychiatric diagnoses associated with only telephone visits included substance use disorders and psychotic disorders. In multivariate analyses, factors associated with higher odds of only telephone visits included older age, inactive patient portal, comorbid diabetes, higher SVI, and higher broadband adoption. Psychiatric diagnoses associated with higher odds of completing only telephone visits included psychotic disorders, substance use disorders, or intellectual/developmental disabilities. Conclusions: Several patient-level factors are associated with a reliance on the telephone to complete telepsychiatry appointments.

User centric metrics for a realistic assessment of broadband services

Past broadband adoption initiatives underscored common wisdom: “We cannot manage what we cannot accurately measure”, “Trust but verify”. Self-reported Federal Communications Commission data has been notoriously unreliable or lacking granularity and that led to an overoptimistic perception of the quality and coverage of broadband services. Data collected in the past was deficient in providing a complete view of the user experience by focusing exclusively on a simple metric, bandwidth availability. Moreover, data collected in the past typically provided a point-in-time perspective on the state of broadband services in each region. In this paper, we discuss a new set of metrics and measurement techniques needed to make broadband funding decisions efficient in terms of quality of services delivered and return on investment, and to track their progress. We propose composite metrics that capture the complete value of the service to the user and emphasize the feasibility of measuring and monitoring such a metric over time.

Rural digital infrastructure and labor market: Evidence from universal telecommunication service

AbstractThis study estimates the effects of the rapid expansion of digital infrastructure on rural employment and income. We use a triple‐difference framework and exploit the geographic variation of the recent universal telecommunication service in China. Empirical results reveal increased broadband adoption after the implementation of the program with governmental subsidy. The universal telecommunication service led to an increase in rural residents’ income and their employment in the non‐agricultural sector, especially salaried work. The findings suggest that digital infrastructure promotes the transformation of the rural economy in emerging markets.

Impacts of Mobile Phone Subscription, Internet Users, and Broadband Adoption on National Output in South Korea

Applying the macroeconomic model developed by Romer (2000), this paper finds that more mobile phone subscriptions, Internet users, and broadband adoption raise output (real GDP) in South Korea. In addition, fiscal expansion and a higher expected inflation rate reduce output whereas real appreciation of the Korean won increases output. Therefore, governments should support investments in ICT (information and communication technologies) in order to enhance output.

The South Korean case of deploying rural broadband via fiber networks by implementing universal service obligation and public-private partnership based project

Despite broadband being essential infrastructure for conducting basic socio-economic activities and reducing inequality and the digital divide, expanding broadband coverage in rural areas remains a significant challenge in many countries due to high deployment costs. South Korea, a developed country in terms of fixed broadband penetration, implemented two policies for rural broadband via fiber access networks simultaneously during the COVID-19 pandemic. One is the universal broadband service at 100 Mbps speed introduced in 2020, and the other is the rural broadband project in terms of a public-private partnership (PPP) that proceeded from August 2020 to 2022. While both policies contribute to reducing the broadband gap between the urban and the rural in the country, it is still important to find the optimal cost-effective combination of the plural rural policies as much as possible from the cost perspective. Accordingly, this study proposes an investment cost estimation model for deploying rural broadband via fiber networks in South Korea and evaluates whether implementing two rural broadband policies in the country is cost-effective. The proposed model is designed according to the bottom-up approach, which involves building an efficient network with the latest technologies; thus, it gives a more accurate and reliable estimation of the investment cost of building rural broadband in the South Korean territory. The significant findings of this study are twofold. First, the PPP-based project could make the participating internet service providers (ISPs) deploy broadband at a cost-effective level, similar or lower to the universal service, and then recover the investment cost per building within a reasonable period. Thus, the result implies that governments need to consider the PPP-based project as an effective measure to deploy rural broadband, in addition to the introduction of universal service. Implementing multiple broadband policies to expand rural broadband coverage could be a reasonable and practical approach to improving broadband availability. Second, the governments still needs to make efforts to solve the complicated difficulties in rural areas in South Korea where rural-related broadband policies are still challenging to implement. This study confirmed that in some regions, the PPP-based project was still inferior to universal service in terms of average investment cost. In contrast, universal service had significant constraints to providing broadband because of the end-users cost burden, resulting in low broadband adoption. Therefore, the government needs to consider some measures to increase broadband availability and broadband adoption, such as widening the rural areas under the jurisdiction of participating ISPs, decreasing the proportion of participating ISPs bearing the investment cost of deploying broadband, and improving the cost burden of the end-users of universal service in some limited areas.

The impact of taxation in the telecommunications industry

In this article we study the impact of taxation in the performance of the telecommunications sector. To do so, we develop a model that considers the taxes and fees imposed directly or indirectly along the telecommunications value chain. Overall, we find strong evidence of a negative impact on investment from an increase in regulatory fees, profit taxes, and excise taxes. In addition, telecommunication service prices are affected by the fiscal regime, both directly -through taxation over services- and indirectly, through obligations imposed on operators that can ultimately have an impact on service prices. We also find some evidence of the effect of custom duties for equipment and smartphones on the decrease of investment on broadband network deployment and service adoption, respectively. On this basis, we simulate a fiscal-reform scenario, consisting in removing sector-specific contributions to eliminate inter-sectoral asymmetries, with results suggesting significant gains in investment, coverage, and adoption. Considering these findings, and the potential socioeconomic gains from increasing broadband adoption, we believe that governments pursuing the development of digital agendas should consider potential fiscal reforms to accelerate the development of the digital economy. That being said, considering the potential loses in tax collection, a careful trade-off analysis should be performed before determining the nature and the scope of the fiscal reforms to be introduced.

Community-wide broadband adoption and student academic achievement

This study examines the relationship between broadband adoption and county-level educational achievement in the US. We employ a novel measure of home broadband subscriptions to explore longitudinal community impacts of broadband adoption on aggregated standardized test scores in math and reading/language arts for students enrolled in 3rd-8th grades. We create a panel of US counties and measure the effect of broadband adoption on student educational achievement by estimating a fixed effect estimator. For the typical student in a county, the main results indicate that higher broadband adoption increases standardized test scores in both math and reading/language arts. The results are robust to alternate model specifications and an instrumental variable approach. Not all students benefit equally from higher rates of broadband adoption, however. We find that Black and Latino (and lower-income students) enjoy higher educational achievement gains compared to their white (and higher-income) student counterparts. The findings highlight the potential role community broadband adoption can have in promoting student educational achievement and reducing disparities within the education system.

Can the Arts and Crafts Sector in India be Sustainable: A Grounded Theory Approach to Mapping Challenges and Proposing Solutions

The demand and market for indigenous art, craft and handloom products in India have witnessed a massive decline in recent years. The growing popularity of machine-made products through online retail and a lack of monitoring for product quality led to genericide in the arts and crafts sector, which is detrimental to the indigenous and traditional handicraft businesses. India’s sub-optimal performance in competitiveness factors such as basic infrastructure, intellectual property rights, education and broadband adoption not only bring down revenues for indigenous artists and crafts people but also lower consumer demand due to a lack of trust in the product as well. Drawing on constructivist grounded theory, this paper identifies challenges facing indigenous art and craft sellers and proposes measures to ensure the sustainability of this sector. The paper also finds that Genericide is not only having an adverse economic impact on the sector but also affecting the brand image of Indian Indigenous Arts and Crafts. Geographical Indication is proposed as a possible way to create a differentiation between indigenous products and generic products to counter Genericide and check the growing hyper-competition. A system for quality management is suggested to ensure Geographical Indication products stand out and win consumer trust.Supplementary InformationThe online version contains supplementary material available at 10.1007/s42943-022-00065-9.

The Role of Broadband Infrastructure in Building Economic Resiliency in the United States during the COVID-19 Pandemic

The purpose of this paper is to study the role of broadband in mitigating the economic losses resulting from COVID-19 in the United States by providing a necessary infrastructure to keep economic systems operating, albeit partially. The study is based on an empirical framework underlined by a Cobb–Douglas production function and estimated within a structural multi-equation model through the three-stage least squares approach. To consider the impact of COVID-19 on the economy, we rely on two main variables: an indicator of the quantity of deaths attributed to the disease for every 100,000 inhabitants; and the Stringency Index, a metric linked to the intensity of social restrictions imposed by national and local governments. The main contribution of this article is to provide robust evidence for how the heterogeneous effects of the pandemic across states are in part explained by differences in broadband adoption. Our results indicate that those states with higher broadband adoption were able to mitigate a larger portion of their economic losses derived from the pandemic-induced lockdowns. Addressing the digital divide and ensuring universal access to broadband represent critical goals for building economic resilience to face future emergencies.