An empirical study of broadband diffusion in rural America |
| |
Authors: | Victor Glass Stela K Stefanova |
| |
Institution: | 1.National Exchange Carrier Association, Inc.,Whippany,USA |
| |
Abstract: | In this study we examine the factors that will encourage broadband adoption in rural areas. Using data on rural Incumbent
Local Exchange Carriers (ILECs) we find that low density, high cost markets decrease the ability of the telecommunication
service providers to offer DSL, but other factors also play a role. Demand for broadband has become more inelastic over time,
marginal increases in speed alone have lost their appeal to customers, and the inclusion of video in a broadband package improves
broadband take rates and willingness to pay. Small income elasticities reinforce our finding that broadband has become a necessity.
Our analysis shows that price subsidies may not be effective in providing a large boost in demand, but policies that lower
the cost of providing video may stimulate broadband adoption indirectly if the savings lead to more affordable bundled communications
multimedia packages that users want. |
| |
Keywords: | |
本文献已被 SpringerLink 等数据库收录! |
|