Broadband Adoption Research Articles

Household Adoption of Technology: The Case of High-Speed Broadband Adoption in Australia

Within the home context a high-speed broadband Internet connection is seen as a key enabler for effective access to and use of the Internet. This article examines the factors contributing to household adoption of high speed broadband in Australia. Building on the Theory of Reasoned Action and seminal research on technology adoption in the home and the workplace, the article presents and evaluates a hypothesized model of Household Adoption of Technology.

Broadband Adoption: Translating the Digital Divide Literature into Effective Government Policies and Actions

Broadband Adoption: Translating the Digital Divide Literature into Effective Government Policies and Actions

Broadband for All: Policies for a Connected Society

Intelligent networks, smart appliances, the Internet of things – whatever it is called, the future that many envision will require a robust Internet, and everyone, or nearly everyone, will need to be connected to it. This paper explores three questions that are foundational to the achievement of this vision of a connected society: (1) How to determine the minimum Internet connection speed compatible with effective participation by citizens in a connected economy? (2) What policy choices influence the availability of broadband networks? (3) What policy choices influence the adoption of broadband by citizens where broadband networks are available? How to determine the minimum speed of Internet connection compatible with effective participation by citizens in a connected economy? Many households are able to obtain very fast Internet connections, often up to 100 Mbps or even faster, and the number of households with access to such a service is increasing. These very fast download speeds, however, are well in excess of what is minimally required for households to participate in a connected economy. It is not necessary that every household has superfast Internet, only that they have a sufficiently fast Internet connection. First, one must determine the services that are necessary for households to participate in a connected economy, and then one must determine the download speed and upload speed that are sufficient for that participation. This paper considers the available information on services and download and upload speeds. While the required minimum standard might be available to most households in developed countries, it is likely not available to all households. What policy choices influence the availability of broadband networks? Cambini and Jiang (2009, pages 560-562) identify three broad policy approaches to broadband deployment. The first, exemplified by the US, features platform competition and a deregulatory approach to FTTP networks, which are not subject to mandatory unbundling requirements. A second approach, exemplified by East Asian nations such as South Korea and Japan, features strong policy intervention and direction from the state to promote FTTP deployment and adoption. A third approach is found in the EU where unbundling of fixed networks figures very prominently. At a broad level, these approaches reflect differing patterns of political and economic institutions among the U. S., the EU, and East Asia. The accumulating empirical evidence shows a sharp divergence, as between North America and Europe, in terms of broadband network availability, adoption and performance. This suggests that the relatively restrained wholesale policies in North America, compared to Europe, have led to more successful broadband outcomes. Where policies of facilities-based competition reach their limits, this paper explores options for extending broadband service. A bidding process to extend service to underserved or unserved areas, or a reverse auction, will hold down the cost of extending service. The cost of such a service extension can be funded, preferably, from general tax revenues, or, if that is not possible, from a broad-based telecommunications revenue charge. This would provide the required funds in the least distortionary and most efficient manner. What policy choices influence the adoption of broadband by citizens where broadband networks are available? Even where policies are encouraging the construction of broadband networks, the vision of a connected society cannot be achieved without the wide adoption of broadband by citizens. Indeed, in telecommunications markets with advanced platform competition across cable, wireline, wireless and satellite infrastructures, encouraging adoption represents a major opportunity to generate additional socio-economic benefits. Recent studies highlight supply-side, socio-economic characteristics – such as age, education, and income – as primary factors that limit broadband adoption (Landry and Lacroix, 2014). Addressing such issues is typically beyond the mandate and skill set of a sector-specific regulator and calls forth the need for broader governmental action (via school system, skills training, etc) Sector-specific regulators can, however, use their tool box of skills and remedies to increase adoption by maintaining a robust commitment to facilities-based competition. Empirical research has shown that broadband adoption is greater in countries with facilities-based competition (Crandall et al., 2013).

Is There a Coupon Divide? A Study of Technology Adoption in the Digital Television Transition of 2005

At the zip code level, I investigate drivers of adoption for converter boxes funded by the Digital Television Transition of 2005. I find that broadband adoption explains participation in the coupon program. In regression analysis, I include controls for over-the-air television households, coupon redemption rates, broadband availability, location affordability, income, population density, age, and dependents per capita. Broadband adoption may have driven coupon requests. But coupon seekers may have adopted broadband for access to savings. My study does not identify the direction of causation between broadband and coupon requests. However, this data suggests that broadband adoption correlates to preferences for coupon savings. Broadband enhances preferences of householders to seek coupons, deals, and opportunities. By finding a relationship between coupon participation and broadband adoption, I add to the digital divide literature and suggest questions for further study. I review a federal program that spent 160 million dollars to distribute 1.34 billion dollars in coupons redeemable in electronics stores nationwide.

Go for Gigabit? First Evidence on Economic Benefits of (Ultra-)Fast Broadband Technologies in Europe

The literature on the effects of telecommunications infrastructure investments find positive macroeconomic effects, however, it is severely constrained because it could hitherto only analyze investment up to broadband but not up to the newer generations of and broadband; in particular there is no such evidence available at the EU level so far. Utilizing a comprehensive panel dataset of EU27 member states for the period from 2003-2015, we estimate a small but significant effect of fiber-based ultra-fast broadband over and above the effects of basic broadband on GDP. Adoption of hybrid-fiber fast broadband is incrementally to basic broadband insignificant. Our cost-benefit analysis implies that policy intervention – as foreseen by the European Commission in its public policy targets – is only justified for coverage and adoption levels of around 50% of fast or ultra-fast broadband, whereas for 100% coverage levels we find net losses to society. Thus, it appears that – for the time being and according to the policy principle of technological neutrality – a combination of basic broadband, fast and ultra-fast broadband entails the largest economic net benefits to society.

Private Solutions to Broadband Adoption: An Economic Analysis

For the last twenty years, promoting broadband adoption has been a focal point of communications policy around the world. Despite significant advances, there is still much work to be done. To help bridge this adoption gap, in many countries private communications companies are now offering services at deeply discounted prices or even for free. Facebook’s “Free Basics” program, for instance, helps to address the awareness, digital literacy and affordability barriers to adoption by offering consumers in more than 45 countries free access to basic on-line services such as communication tools, health services, educational information, and job tools. And, by increasing digital awareness, many of the program’s users upgrade to fee-based services to the broader Internet in a short amount of time. Nonetheless, questions are being asked about the propriety of the basic connectivity offered by such programs. Using economic theory, we demonstrate that the price-quality variations of such programs are economically sensible, if not necessary, to address the key barriers to adoption without attenuating investment incentives. In addition, we demonstrate that such “free but limited” programs can increase adoption by “smoothing” Internet consumption over time and present econometric evidence of “connectivity insurance,” keeping consumers on-line during periods of financial distress.

Picking up Speed: Does Ultrafast Broadband Increase Firm Productivity?

UFB alone is not the path to success. Organise, you must. We estimate whether there are productivity gains from ultrafast broadband (UFB) adoption and whether any gains are higher when firms undertake complementary organisational investments. Using an IV strategy based on proximity to schools (that were targeted in the UFB roll-out), we find that the average effect of UFB adoption on employment and (labour and multifactor) productivity is insignificantly different from zero, even for firms in industries where we might expect the returns to UFB to be relatively high. Conversely, we find that firms making concurrent investments in organisational capital specifically for the purpose of getting more from their ICTs appear to experience higher productivity growth, at least in first-difference specifications. Firms making these joint (UFB-organisational) investment decisions are significantly more likely to report other positive outcomes from their ICT investments, consistent with the identified relationship with productivity being causal.

The Digital Divide and Other Economic Considerations for Network Neutrality

In its 2016 Broadband Report, the Federal Communications Commission (FCC) recognizes that a rural/urban digital divide remains prevalent—especially with respect to broadband adoption. It also highlights several policies that the FCC has undertaken purportedly to reduce the divide, including the 2015 Open Internet Order (OIO)—in which the stated intent is to enforce “network neutrality.” However, long before the OIO, studies have raised concerns that network neutrality policies will discourage investment by internet service providers (ISPs) in broadband infrastructure, to the detriment of broadband accessibility, and may increase average consumer costs—both of which would only further exacerbate the digital divide. In this paper, we provide a holistic analysis of the effects of net neutrality on the digital divide; in doing so, we draw from recent economic research on this issue. Our goal is to present a range of economic considerations that should be taken into account when evaluating the overall impact of the OIO, with particular attention to its impact on the digital divide.

Aspectos discriminantes entre usuários e não usuários da internet banda larga

The internet has been detached as communication means in many different ways. This development would not be possible if data transmission technology through the internet had not been developed enough to allow adequate speed for these applications. In small business markets, one can still find a significant part of dial-up internet users that have not yet adopted broadband. This study had two objectives: test the dimensionality and the reliability of a technology acceptance model in the context of broadband adoption and identify the factors in the model that have significant differences between users and non-users of this service. Significant differences have been identified for the factors: behavior intention, social influence and facilitating conditions. Among these factors, the ones that present negative means (facilitating conditions and behavior intention) for the non-users of broadband may represent barriers in broadband adoption by the potential client.

Advanced users and the adoption of high speed broadband: Results of a living lab study in the Netherlands

In linking the literature on the adoption of Information and Communication Technology (ICT) with the lead user theory, the paper presents the results of a living lab study on the adoption of high speed broadband and advanced ICT services in the Netherlands. The paper proposes that advanced users are able to shape ICT technologies based on their status, their needs and their ability to propose new solutions. In order to examine the role of advanced users, we use data from an on-line survey conducted in a living lab called “Kenniswijk” (Knowledge District) in the Netherlands carried out among 2994 residential users in July 2009. In a first step, the paper examines the leading-edge status of advanced users. Afterwards it studies the extent to which the choice of these users to adopt high speed broadband is related to their decision to adopt advanced ICT services. Finally, the paper utilizes an experimental choice design in order to examine the role of advanced users in defining new product and service characteristics of advanced ICT services. Our research shows that an advanced group of users expected to benefit from using a variety of advanced ICT services in areas such as e-surveillance and local television. In addition, they can contribute to the product and service generation phase within a living lab environment.

The Economic Impacts of Telecommunications Networks and Broadband Internet: A Survey

We provide a structured overview of the quantitative literature on the economic impacts of telecommunications networks and broadband internet. Differentiating between wireline and wireless technologies as well as broadband availability and broadband adoption, respectively, we review studies investigating the impacts on economic growth, employment and regional development as well as productivity and firm performance. Eventually, the survey does not only allow the identification of main research gaps but also provides useful information for policy makers on the significance and importance of communication networks for social welfare.

Broadband and civic engagement in rural areas: What matters?

This article uses recent data on both broadband and civic engagement to assess how various aspects of broadband access might be related to community involvement in rural areas of the US. In particular, it seeks to answer whether broadband access, adoption, or infrastructure (as measured by community anchor institutions) has the strongest relationship with specific civic engagement metrics. The data include 19 specific civic engagement metrics from the 2011 Current Population Survey and 2011 data on broadband access and adoption from the National Broadband Map and the Federal Communications Commission. Scatterplots and regression analysis using both aggregate (state-level) data and individual (household-level) data were used to assess overall relationships. The results of both univariate and multivariate analyses suggest that it is the adoption of broadband that is the most influential to civic engagement overall; however, community anchor institutions are important for certain metrics such as interactions with neighbors or confidence in local schools.

Analysis of the dynamic broadband technology competition

Purpose – The purpose of this paper is to investigate the effect of inter-platform competition on the adoption of different broadband technologies (i.e. among xDSL, fibre-optic technologies, and hybrid fibre coaxial (HFC)), examine the direction of the effect, and identify potential technology convergence and the speed of technology innovation. Design/methodology/approach – It uses Lotka-Volterra equation to determine the dynamic competition pattern for xDSL, fibre-optic technologies, and HFC. Findings – The influence of inter-platform competition on the adoption rate may vary depending on the market conditions, the phase of the adoption period, and the types of competing technology. Even though new technology has competitive advantage, it still requires time to acquire market share. Even though fibre-optic is leading in the market, alternative technologies have also garnered significant market share in the early stage. Specifically, HFC has gained its own market position, making it a valuable alternative in the short term. Nonetheless, the market will eventually converge to fibre-optics. Originality/value – The findings show that inter-platform competition does not always exert positive influence on broadband adoption as indicated in previous literature. Instead, the influence may vary from negative to neural. This information is an important knowledge addition to the literature. Overall, the study has important implications to governmental effort in managing market competitions and in planning national broadband infrastructure policies. It also provides valuable implications on how ISPs should strategize their investment in new broadband technologies.

Does Broadband Matter for Rural Entrepreneurs and Creative Class Employees?

Efforts to attract entrepreneurs and “creative class” workers have become important components of economic development strategies for rural communities. One commonly held perception is that broadband access is important for these types of employees; however, empirical research on the relationship between the two is generally lacking. This study uses county-level data from the continental U.S. to estimate spatial and first-differenced regression models on the association between broadband and measures of entrepreneurship/creative-class employees in rural areas. The results suggest that high levels of broadband adoption may in fact serve to reduce the numbers of entrepreneurs and creative class employees in rural America. These findings serve as a reminder that broadband is not a panacea for all issues of importance to rural communities and provide evidence that there may be negative implications associated with efforts to increase levels of rural broadband access and adoption.

Does Broadband Matter for Rural Entrepreneurs or ‘Creative Class’ Employees?

Efforts to attract entrepreneurs and ‘creative class’ workers have become important components of economic development strategies for rural communities. One commonly held perception is that broadband access is important for these types of employees; however, empirical research on the relationship between the two is generally lacking. This study uses county-level data from the continental U.S. to estimate spatial and first-differenced regression models on the association between broadband and measures of entrepreneurship / creative class employees in rural areas. The results suggest that high levels of broadband adoption may in fact serve to reduce the numbers of entrepreneurs and creative class employees in rural America. These findings serve as a reminder that broadband is not a panacea for all issues of importance to rural communities, and provide evidence that there may be negative implications associated with efforts to increase levels of rural broadband access and adoption.

Broadband un-adopters

An important but understudied aspect of the current broadband adoption situation is households that once had Internet connectivity but no longer do. These households, termed “un-adopters,” comprised 12% of all non-adopting households as of 2013. In comparison with their “never-adopter” counterparts, un-adopters are significantly more likely to cite cost, the potential to use the Internet elsewhere, and the inadequacy of their computer as reasons for their discontinued use. Using national data from the 2013 Current Population Survey, a multinomial logit model assesses the reasons that these households no longer maintain a broadband connection. The findings suggest that to reach un-adopters, subsidized access may be warranted for households with incomes up to $40,000, and that programs on broadband awareness may be most effectively targeted towards retirees. These results are reinforced with recent data from the FCC’s Low-Income Broadband Pilot Projects, where approximately 22% of those signing up for the program were previous un-adopters. Understanding and engaging un-adopters will be crucial as the FCC Low-income Broadband program and other adoption-oriented policies move forward.

Investigating mobile broadband adoption and usage: A case of smartphones in Sweden

Looking back at the last decade, the mobile phone has undergone great development, from only voice calls and text messages to a multi-purpose device that includes a camera, music player, games, and even a small computer. The development of internet features in mobile phones has also continuously and extensively changed from providing only limited internet browsing in the early 2000s to high quality video on demand today. The speed of the internet has also increased significantly since the introduction of smartphones. After the implementation of 3G networks in the past decade and the recent LTE networks of 4G technology in the last few years, the transmission speed of mobile internet supports the use of mobile phones to provide high-speed internet services known as mobile broadband. Furthermore, recent studies have suggested that mobile broadband has a positive effect on economic outputs as well as reducing the problem of the digital divide, especially in rural areas where fixed broadband infrastructure is limited or not available.This paper analyses how mobile internet adoption has developed in the last decade and what factors determine mobile broadband adoption at this stage when smartphones are highly developed and the transmission speed is much improved. In this paper, Sweden is selected as a case study. The data set used in this paper is mainly based on the annual questionnaire conducted by the Swedish Post and Telecom Authority (PTS) in 2013. The methodology of this paper applies bivariate probit with sample selection since the data set consists of two sets of binary outcomes (adoption and usage). The findings show that smartphone adoption is less likely in the group of respondents who are older, have a lower income, lower level of education and live outside Stockholm. The findings on smartphone usage show that lower income respondents tend to use social networking, online shopping and internet telephone more than those with a higher income. The reasons could be explained by these kinds of applications reducing the costs for users compared with offline services. Identifying the determinants of mobile broadband adoption and usage is very useful for broadband policy, especially a policy related to reducing the digital divide. Policymakers can therefore use these findings to encourage the population to use the applications and services, especially people who are still non-adopters.

The downside of digital inclusion: Expectations and experiences of privacy and surveillance among marginal Internet users

Increasing broadband adoption among members of underserved populations remains a high priority among policymakers, advocates, corporations, and affected communities. But questions about the risks entailed in the flow of personal information are beginning to surface and shine light on the tension between broadband’s benefits and harms. This article examines broadband adoption programs at community-based and public institutions in the United States in order to understand the ways in which privacy and surveillance issues emerge and are engaged in these settings. While adults who enroll in introductory digital literacy classes and access the Internet at public terminals feel optimistic about broadband “opportunities,” they encounter “privacy-poor, surveillance-rich” broadband. Users experience myriad anxieties, while having few meaningful options to meet their concerns.

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, 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.

Evaluating the impact of the American Recovery and Reinvestment Act’s BTOP on broadband adoption

The American Recovery and Reinvestment Act’s Broadband Technology Opportunities Program (BTOP) spent $4.7 billion during 2009–2013 to, inter alia, increase broadband adoption in underserved communities. We characterize the BTOP grants and examine the impact of the awards on broadband adoption. Econometric specifications controlling for award endogeneity related to observed and unobserved county-level factors find that spending is apparently associated with increased broadband adoption. Further investigation, however, reveals that the impacts of spending are nonlinear and even nonmonotonic over the range of county-level BTOP spending in the data. Controlling for trends to reduce the potential for spurious correlation between spending and outcomes removes most of the significance of the results. We conclude with three lessons for policymakers derived from the uncertain outcomes of BTOP spending found in our exploration.