Achieving Affordability
Abstract
This chapter focuses on one of the three dominant adoption obstacles needed to be tackled to achieve broadband diffusion among residential subscribers: limited affordability. The research reviewed in Chap. 2 indicated that, while price does not play a significant role among early adopters of broadband, once service coverage has reached a tipping point, affordability becomes the most important variable driving penetration. Moreover, research also indicated that, at higher penetration levels of broadband, price elasticity coefficients start to decline, indicating the lower importance of affordability as an adoption factor. In that regard, research indicates that limited affordability is a critical adoption obstacle when broadband penetration ranges between 3 and 20 %, which is the stage at which most emerging countries are.
Keywords
Price Elasticity Herfindahl Hirschman Index Broadband Access Mobile Broadband Competitive IntensityReferences
- Atkinson, R.D., Correa, D.K., Hedlund, J.A.: Explaining International Broadband Leadership. http://archive.itif.org/index.php?id=142 (2008). Accessed 29 March 2014
- Cadman, R., Dineen, C.: Price and income elasticity of demand for broadband subscriptions: a cross-sectional model of OECD countries. http://spcnetwork.eu/uploads/Broadband_Elasticity_Paper_2008.pdf (2008). Accessed 22 March 2014
- DANE.: Gran Encuesta Integrada de Hogares. http://www.dane.gov.co (2012). Accessed 2 April 2014
- Dutz, M., Orszag, J., Willig, R.: The substantial consumer benefits of broadband connectivity for US households. Internet Innovation Alliance (2009)Google Scholar
- Galperin, H.: Precios y calidad de la banda ancha en América Latina: Benchmarking y tendencias. Centro de Tecnología y Sociedad, Universidad de San Andrés. https://www.udesa.edu.ar/files/AdmTecySociedad/12_galperin.pdf (2012). Accessed 2 April 2014
- Galperin, H., Ruzzier, C.A.: Price elasticity of demand for broadband: evidence from Latin America and the Caribbean. Telecom Policy 37(6–7), 429–438 (2013). doi: 10.1016/j.telpol.2012.06.007
- Goolsbee, A.: The value of broadband and the deadweight loss of taxing new technology. Contributions Econ. Anal. Policy 5(1), 1–29 (2006)Google Scholar
- Greenwood, J., Kopecky, K.: Measuring the welfare gain from personal computers. CRIW Workshop. NBER Summer Institute. retrieved: http://karenkopecky.net/ComputerSlides.pdf (2008)
- GSR11.: Best Practice Guidelines on Regulatory Approaches to Advance the Deployment of Broadband, Encourage Innovation and Enable Digital Inclusion for All. Paper presented at 11th Global Symposium for Regulators, Armenia City, September 21–23, ITU (2011)Google Scholar
- IBGE.: Pesquisa Nacional por Amostra de Domicílios. www.ibge.gov.br (2012). Accessed 2 April 2014
- INDEC.: Encuesta Permanente de Hogares. www.indec.gov.ar (2012). Accessed 2 April 2014
- INEC.: Encuesta Nacional de Empleo Desempleo y Subempleo ENEMDUR – Módulo “Tecnologías de la Información y Comunicaciones”. ww.inec.gob.ec (2012). Accessed 2 April 2014
- INEGI.: Encuesta Nacional de Ocupación y Empleo - Módulo sobre Disponibilidad y Uso de Tecnologías de la Información en los Hogares. www.inegi.org.mx (2012). Accessed 2 April 2014
- InfoDev.: Mobile Usage at the Base of the Pyramid in South Africa. http://www.infodev.org/en/Publication.1193.html (2012). Accessed 2 April 2014
- Katz, R.: El Presente y futuro de las telecomunicaciones en Costa Rica. Presentation to the IV Expo-Telecom, San Jose, Costa Rica. September 19. http://www.teleadvs.com/wp-content/uploads/Presentacion-Expo-Telecom-v.4.pdf (2012). Accessed 6 March 2014
- Katz, R., Callorda, F.: Mobile Broadband at the bottom of the pyramid (report). http://gsma.com/newsroom/wp-content/uploads/2013/12/GSMA_LatAM_BOP_2013.pdf (2013). Accessed 2 April 2014
- Katz, R., Flores-Roux, E., Mariscal, J.: The impact of taxation on the development of the mobile broadband sector (report). http://www.gsma.com/latinamerica/the-impact-of-taxation-on-the-development-of-the-mobile-broadband-sector (2011). Accessed 2 April 2014
- Lee, S., Marcu, M., Lee, S.: An empirical analysis of fixed and mobile broadband diffusion. Inf. Econ. Policy 23(3), 227–233 (2011)CrossRefGoogle Scholar
- Mitchell, J.: FCC Healthcare Connect Fund « Center for Telehealth and e-Health Law. http://ctel.org/expertise/fcc-healthcare-connect-fund/ (2013). Accessed 29 March 2014
- NsrinJazani, A., Khatavakhotan, S.: A novel model for estimating bottom of the pyramid market size in IRAN based on inflation rate and income rate. IPEDR, vol. 13. IACSIT Press, Singapore (2011)Google Scholar
- OECD.: Methodology for Constructing Wireless Broadband Price Baskets. OECD Digital Economy Papers, p. 205. OECD Publishing. http://dx.doi.org/10.1787/5k92wd5kw0nw-en (2012)
- Prahalad, C.K.: The Fortune at the Bottom of the Pyramid. Wharton School Publishing, Philadelphia (2004)Google Scholar
- Prahalad, C.K.: The fortune at the bottom of the pyramid: eradicating poverty through profits, p. 407. Wharton School, Upper Saddle River. ISBN 978-0-13-700927-5 (2010)Google Scholar
- Rappoport, P., Kridel, D.J., Taylor, L.D., Alleman, J., Duffy-Deno, K.T.: Residential demand foraccess to the Internet. Int. Handb. Telecommun. Econ. 2, 55–72 (2002)Google Scholar
- Shah, Z.: The Income and Expenditure Pattern of Families at the Bottom of the Pyramid (2013)Google Scholar
- Srinuan, P., Srinuan, C., Bohlin, E.: The Mobile Broadband and Fixed Broadband Battle in Swedish Market: Complementary or substitution? (2011)Google Scholar
- Zager, M.: Broadband Transforms Rural Health Care. http://www.bbpmag.com/MuniPortal/EditorsChoice/0912editorschoice.php (2012)