Fixed Broadband Penetration Research Articles

How is mobile broadband intensity affecting CO2 emissions? – A macro analysis

This paper investigates the association between relative mobile broadband penetration (i.e. mobile broadband connections in total mobile connections) and carbon dioxide (CO2) emissions globally. The study is based on 181 countries for the period 2002–2020. The results indicate an initial increase in CO2 emissions for a country at an average emission level once mobile broadband is introduced. Possible explanations might be initial investment in network infrastructure and increased consumption of electricity. However, on average for the period 2002–2020 the continuous relationship between mobile broadband (defined as speeds of at least 256 kb/s) and CO2 is significantly negative in a statistical sense, i.e. emissions at a country level significantly reduce as mobile broadband penetration increase. Based on a two-stage model and controlling for additional independent variables (i.e. GDP per capita, population density, the share of electricity consumption that comes from fossil fuel, industry as a share of GDP, a regulation index, fixed broadband penetration, working age population as a share of total population and a human capital index), we conclude that on average a 10 percentage points increase in relative mobile broadband penetration causes a 7 percent reduction of CO2 emissions per capita (given that the instrumental variable strategy, as assumed, identifies causal effects). Thus, the results shows that investments in mobile infrastructure over longer periods of time can contribute to mitigating climate change. However, the relationship is only significant for high-income countries (i.e. countries with a GNI of $4096 or above). The results remain significant when mobile broadband is defined as mobile broadband connections per 100 inhabitants.

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.

Analysis of the Needs of ICT Ecosystems to Support the Acceleration of Internet Fixed Broadband Penetration (case: Bogor, Sumedang, Bangli, and Karangasem)

<p class="JGI-AbstractIsi">This study is conducted to see the potential demand with the characteristics of the campus environment, industrial environment, and tourism environment on internet fixed broadband use, where the objective of this survey is limited to households, individuals and businesses. Analysis is carried out in a descriptive manner based on the results of qualitative discussions by experts which is reinforced by the findings of the survey results. The survey results show that the internet utilization by the public (households, businesses) is mostly for communication and entertainment, so that the cellular internet is considered adequate for public's internet need. This is relevant to the public’s opinion that 87.9% of the internet needs are met when using cellular phone. There are 3 (three) perceptible reasons of why respondents choose not to subscribe to Fixed broadband internet, namely: 1) There is no necessity for subscription, 2) Lack of Knowledge/Information related to Broadband Fixed internet, and 3) Expensive Prices. The potential demand for each characteristic is always there, however, the most dominant one comes from the businesses, such as cafes/eateries, food stores, gift shops, photocopying businesses, vehicle rental services, travel businesses, etc.<strong></strong></p>

Analysis of the Needs of ICT Ecosystems to Support the Acceleration of Internet Fixed Broadband Penetration (case: Bogor, Sumedang, Bangli, and Karangasem)

This study is conducted to see the potential demand with the characteristics of the campus environment, industrial environment, and tourism environment on internet fixed broadband use, where the objective of this survey is limited to households, individuals and businesses. Analysis is carried out in a descriptive manner based on the results of qualitative discussions by experts which is reinforced by the findings of the survey results. The survey results show that the internet utilization by the public (households, businesses) is mostly for communication and entertainment, so that the cellular internet is considered adequate for public's internet need. This is relevant to the public’s opinion that 87.9% of the internet needs are met when using cellular phone. There are 3 (three) perceptible reasons of why respondents choose not to subscribe to Fixed broadband internet, namely: 1) There is no necessity for subscription, 2) Lack of Knowledge/Information related to Broadband Fixed internet, and 3) Expensive Prices. The potential demand for each characteristic is always there, however, the most dominant one comes from the businesses, such as cafes/eateries, food stores, gift shops, photocopying businesses, vehicle rental services, travel businesses, etc.

Fixed Broadband Penetration and Economic Growth

This study explores causal relationships between fixed broadband penetration, gross capital accumulation, the degree of urbanisation, and economic growth, using panel data from 9 ASEAN member countries in 2003-2016. Employing multivariate models, we reveal bidirectional causality between fixed broadband penetration and economic growth, with a higher magnitude of effect from GDP per capita to broadband penetration. Furthermore, fixed broadband penetration has bidirectional causality to urbanisation, while a unidirectional link exists from fixed broadband penetration to gross capital accumulation.

Fixed Broadband Penetration and Economic Growth

This study explores causal relationships between fixed broadband penetration, gross capital accumulation, the degree of urbanisation, and economic growth, using panel data from 9 ASEAN member countries in 2003-2016. Employing multivariate models, we reveal bidirectional causality between fixed broadband penetration and economic growth, with a higher magnitude of effect from GDP per capita to broadband penetration. Furthermore, fixed broadband penetration has bidirectional causality to urbanisation, while a unidirectional link exists from fixed broadband penetration to gross capital accumulation.

An approach to the broadband effect on Latin American growth: A structural model

This paper analyses the fixed broadband penetration effect on Latin American economic growth. The methodology employed consists of using a simultaneous equation model based on Koutroumpis (2009) and Katz and Callorda (2013). To aid this process, we use country level data from the World Bank and the Regional Dialogue about the Information Society-DIRSI for the 2010-2014 period. The results obtained stress the importance of broadband penetration for economic growth in Latin America.

Broadband penetration and economic growth: Do policies matter?

Although a significant body of literature has examined the interlinkage between broadband penetration and economic growth, the linkage between broadband policies and broadband penetration has been less studied in the literature. In addition, the role of 3G/4G services has also received limited attention. To address this issue, we combine the staggered timing of the implementation of broadband and 3G/4G services across countries and examine its impact on broadband penetration. Relatedly, we also examine the impact of broadband penetration on economic growth and the possible growth drivers. We find that while broadband policies improve fixed broadband penetration, 3G/4G services improve mobile broadband penetration; the magnitude of the latter being nearly three-times that of the former. Besides, we also uncover a positive effect of broadband penetration on economic growth, primarily working through a reduction in broadband prices and well as greater innovation and entrepreneurial activity.

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.

An Empirical Research on the Influencing Factors of Mobile Commerce Diffusion in China

This paper analyzes the factors affecting China’s mobile commerce diffusion at the infant stage and taking-off stage using the data of 31 provinces of China in the years of 2009 and 2012 respectively based on the partial least square regression method. The results of the analysis indicate that fixed broadband penetration rate, GDP per capita and internet penetration rate, urbanization level are the top 4 factors at the infant stage of mobile commerce diffusion, while internet penetration rate,2G mobile penetration rate, income and fixed broadband penetration are the top 4 factors at the taking-off stage of mobile commerce. The findings provide researchers and policy-makers systematic insights into the role of different factors in mobile commerce diffusion at a country level and over time.

The Diffusion of Fixed Broadband: An Empirical Analysis

Broadband infrastructure is a key component of the knowledge economy. Broadband connections on both fixed and mobile networks are becoming an indicator of the knowledge economy. Employing the largest secondary data set, this study examines adoption factors of fixed broadband. The result of nonlinear and linear regression analysis of fixed broadband deployment suggests local loop unbundling (LLU) policy, platform completion between different broadband technologies and other diverse industry, ICT (Information and Communication Technology) and demographic factors influence fixed broadband diffusion. Specifically, the regression analysis of fixed broadband penetration found different types of LLU policies and previous fixed broadband penetration are significant factors of fixed broadband deployment. Some of the significant factors of fixed broadband deployment are different in developed countries than developing countries. This finding suggests, countries fostering broadband deployment need to adopt LLU policy for broadband, but the costs and benefits of the different LLU policy types should be carefully considered. Interestingly, the result of nonlinear regressions of fixed-broadband penetration suggest high levels of platform competition are related to high levels of fixed-broadband penetration, but the effects of platform competition are not statistically significant in OECD countries. This outcome is consistent with the result of linear regression analysis of developed countries (high income ITU membership countries). Considering OECD countries are composed of 30 developed countries with comparatively high GDP per capita, this result is robust. Taking into account this study’s results as well as previous empirical studies on fixed broadband deployment, the effects of platform competition are strong in the initial deployment of fixed-broadband, but the effects of platform competition are decreasing when the broadband market size is sufficiently large or the broadband market is mature. Also, as expected, previous fixed- broadband penetration was found to be an influential factor of current fixed-broadband deployment in all ITU membership countries, whether characterized as developed or developing countries. Considering impacts of platform competition in ITU membership countries, currently it appears in many countries that network effects and the effects of platform competition co-exist.