A Model to Estimate the Broadband and Internet Access Demand for Typical Mexican Rural Communities

11 Pages Posted: 3 Nov 2016

See all articles by Ante Salcedo

Ante Salcedo

Instituto Tecnológico Autónomo de México (ITAM)

Federico Kuhlmann

Instituto Tecnológico Autónomo de México (ITAM)

Date Written: June 22, 2016

Abstract

Benefits of developing telecommunications infrastructure are beyond questioning; however, challenges stand at small rural communities, which in Mexico encompass ~15% of the population, living in townships with less than ~800 residents. Previous research indicates that technology concepts like the Internet of Things (IoT) can create economic value in local economies. Thus, this paper presents a model to estimate wireless access demand in such communities. Estimated projections of IoT product adoption are built for a representative scenario, considering publicly available statistical information (accounting for variables like the number of residents, households, cars, commercial establishments, or local economic indicators). A basket of highly probable products, like payment terminals, is constructed and characterized. Then the adoption process for each considered product estimated with an S-curve, to integrate the corresponding broadband/Internet access demand. Telecommunications industry is experiencing exciting times, yet careful analysis is crucial to support well informed strategic planning processes.

Keywords: Mobile Broadband Access, Rural Community, ICT

JEL Classification: L86

Suggested Citation

Salcedo, Ante and Kuhlmann, Federico, A Model to Estimate the Broadband and Internet Access Demand for Typical Mexican Rural Communities (June 22, 2016). CPRLATAM Conference, Mexico, June 22-23rd, 2016 in conjunction with CLT2016, June 20-23rd, 2016. Available at SSRN: https://ssrn.com/abstract=2863367

Ante Salcedo (Contact Author)

Instituto Tecnológico Autónomo de México (ITAM) ( email )

Av. Camino a Sta. Teresa 930
Col. Héroes de Padierna
Mexico City, D.F. 01000, Federal District 01080
Mexico

Federico Kuhlmann

Instituto Tecnológico Autónomo de México (ITAM) ( email )

Av. Camino a Sta. Teresa 930
Col. Héroes de Padierna
Mexico City, D.F. 01000, Federal District 01080
Mexico

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