Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/100086
Authors: 
Haucap, Justus
Heimeshoff, Ulrich
Lange, Mirjam R. J.
Year of Publication: 
2014
Series/Report no.: 
DICE Discussion Paper 156
Abstract: 
This paper provides an empirical analysis how tariff diversity affects fixed-line broadband uptake, utilizing a new data set with 1497 fixed-line and 2158 mobile broadband tariffs from 91 countries across the globe. An instrumental variable approach is applied to estimate demand, controlling for various industry and socio-economic factors. The empirical results indicate that, firstly, lower prices, more tariff diversity and higher income increase broadband penetration. Secondly, inter-platform competition and mobile broadband prices are not found to have a significant effect on fixed-line broadband penetration. This suggests that low prices and the diversity of broadband offerings are more important drivers of fixed broadband adoption than competition between various technologies (cable networks, fixed-line telephone networks, mobile networks).
Subjects: 
Broadband prices
Tariff diversity
Broadband demand
Broadband penetration
Broadband uptake
Price discrimination
Inter-platform competition
JEL: 
L86
L96
ISBN: 
978-3-86304-155-7
Document Type: 
Working Paper

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