Abstract
Following a discussion about the factors affecting the evolution and adoption of telecommunications and especially broadband communications, namely subscribers’ profile, market competition as well as users’ income and willingness to pay, in this work an overview of tariffs for Asymmetric Digital Subscriber Line (ADSL) connections across Europe is presented and a hedonic model is applied in order to identify and estimate the characteristics which are of substantial influence of the broadband prices’ shape. Finally, a price index for ADSL connections is constructed.
Similar content being viewed by others
References
Varoutas, D., Kamalakis, T., Katsianis, D., Sphicopoulos, T., & Monath, T. (2007). Techno-economic evaluation of optical access and metropolitan area networks: The influence of the status of maturity of the photonics component industry. In Proc. IEEE/OSA OFC 2007, Anaheim, CA, USA, 25–29 Mar 2007.
Haan, M. (2001). The economics of free internet access. Journal of Institutional and Theoretical Economics, 157(3), 359–379. doi:10.1628/0932456013621260.
Goff, D. H. (2002). An Assessment of the Broadband Media Strategies of Western European Telecoms. In Proc. 5th World Media Economics Conference, Turku, Finland, May.
Dickenson, P., & Ellison, J. (1999). Plugging in: The increase of household internet use continuous into 1999. Ottawa: Connectedness Series, Statistics Canada.
Valiente, J. (2002). The principle of non-discrimination in the ADSL market. Brussels: European Internet Services Providers Association (EuroISPA).
ECOSYS (2004). Deliverable 2, overview of demand forecasts for the fixed and mobile networks and services in Europe. ECOSYS, October.
Monath, T., Elnegaard, K., Cadro, P., Katsianis, D., & Varoutas, D. (2003). Economics of fixed broadband access network strategies. IEEE Communications Magazine, 41, 132–139. doi:10.1109/MCOM.2003.1232248.
Kalhagen, K. O., & Olsen, B. T.(2002). Provision of broadband services in non-competitive areas in Western Europe countries. In Proc. ISSLS, Seoul, Korea, April.
Kim, C., & Galliers, R. D. (2004). Toward a diffusion model for Internet systems. Internet Research Journal, 14(2), 155–166. doi:10.1108/10662240410530862.
Lu, J., Yu, C.-S., Liu, C., & Yao, J. E. (2003). Technology acceptance for wireless internet. Internet Research Journal, 13(3), 206–222. doi:10.1108/10662240310478222.
Madden, G., & Coble-Neal, G. (2005). Australian residential telecommunications consumption and substitution patterns. Review of Industrial Organization, 26, 325–347. doi:10.1007/s11151-004-6617-z.
Triplett, J. (2004). Handbook on hedonic indexes and quality adjustments in price indexes: Special application to information technology products. OECD Science, Technology and Industry Working Papers.
Goodman, S. (1999). Toward evidence-based medical statistics. 1: The P value fallacy. Annals of Internal Medicine, 130(12), 995–1004.
Berndt, E. R. (1991). The practice of econometrics: Classic and contemporary. London: Addison-Wesley.
Triplett, J. E. (2000). Draft copy handbook on quality adjustment of price indexes for information and communication technology products. Paris: OECD.
Rosen, S. (1974). Hedonic prices and implicit markets: Product differentiation in pure competition. The Journal of Political Economy, 92, 34–55. doi:10.1086/260169.
Jonker, N. (2001). Constructing quality adjusted price indexes: A comparison of hedonic and discrete choice methods. De Nederlandsche bank, Econometric Research and Special Studies Department.
ECOSYS (2005). Deliverable 14, updated forecasts for the mobile and fixed broadband networks and services. ECOSYS, December.
Author information
Authors and Affiliations
Corresponding author
Additional information
An earlier version of this paper has been presented in the Fifth Conference of Telecommunications Techno-Economics, held in Athens, 6–8 June 2006.
Rights and permissions
About this article
Cite this article
Deligiorgi, C., Vavoulas, A., Michalakelis, C. et al. On the construction of price index and the definition of factors affecting tariffs of ADSL connections across Europe. Netnomics 8, 171–183 (2007). https://doi.org/10.1007/s11066-008-9023-0
Received:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s11066-008-9023-0