Promoting Consumer Migration to New Communications Technology: Does Regulation Affect the Digital Gap?

43 Pages Posted: 12 Oct 2016

See all articles by Wolfgang Briglauer

Wolfgang Briglauer

WU Vienna

Carlo Cambini

Politecnico di Torino & EUI - Florence School of Regulation; European University Institute - Robert Schuman Centre for Advanced Studies (RSCAS)

Date Written: October 12, 2016

Abstract

This paper provides evidence on the migration of consumers from an “old” (copper-based) to a “new” (fiber-based) communications technology, taking specifically into account the impact of regulatory interventions imposed on the old technology. The analysis has been applied to a sample of EU25 countries using panel data from 2003 to 2014 on the adoption (i.e. the demand of subscriptions by households and firms), and take-up rate of ultra-fast broadband technology (i.e. the ratio between fiber subscribers - “homes connected” - to population covered with fiber connections - “homes passed”). Results show that an increase in the regulated price for accessing the existing old network favours consumer migration to the new technology. However, the access price to old technology negatively affects the take-up rate of the new technology. This implies that access regulation also positively affects broadband coverage but more than demand adoption. Hence, in order to raise broadband take-up rate, other instruments are needed to support ultra-fast broadband subscriptions.

Keywords: ultra-fast broadband adoption; migration to new technology; access regulation; NGN infrastructures; broadband take-up rate

JEL Classification: H5, L38, L43, L52

Suggested Citation

Briglauer, Wolfgang and Cambini, Carlo, Promoting Consumer Migration to New Communications Technology: Does Regulation Affect the Digital Gap? (October 12, 2016). Available at SSRN: https://ssrn.com/abstract=2851337 or http://dx.doi.org/10.2139/ssrn.2851337

Wolfgang Briglauer (Contact Author)

WU Vienna ( email )

Welthandelsplatz 1 1
Wien, 1020
Austria

Carlo Cambini

Politecnico di Torino & EUI - Florence School of Regulation ( email )

Corso Duca degli Abruzzi, 24
Torino, Torino 10129
Italy
+390115647292 (Phone)
+390115647299 (Fax)

European University Institute - Robert Schuman Centre for Advanced Studies (RSCAS) ( email )

Villa La Fonte, via delle Fontanelle 18
50016 San Domenico di Fiesole
Florence, Florence 50014
Italy

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