By Raul L. Katz, Taylor A. Berry
This ebook examines the explanations why numerous teams world wide opt for to not undertake broadband prone and evaluates innovations to stimulate the call for that would result in elevated broadband use. It introduces readers to the advantages of larger adoption premiums whereas analyzing the growth that constructed and rising international locations have made in stimulating broadband call for. by means of hoping on recommendations akin to a offer and insist hole, broadband expense elasticity, and insist merchandising, this e-book explains variations among the fastened and cellular broadband call for hole, introducing the notions of substitution and complementarity among either systems. development on those options, ‘Driving call for for Broadband Networks and providers’ deals a collection of most sensible practices and suggestions aimed toward selling broadband call for.
The broadband call for hole is outlined as members and families which can purchase a broadband subscription simply because they reside in parts served through telecommunications companies yet don't achieve this due to both fiscal, restricted know-how, or loss of electronic literacy purposes. This grouping represents a variety from 30% of the inhabitants within the US, forty% in Germany, and over eighty% in so much rising nations. examine exhibits that broadband utilization is important for social improvement, monetary functionality, and total welfare and so it behoves governments to motivate call for.
This examine is the 1st of its type to handle the call for aspect of broadband diffusion, incorporating an monetary research whereas supplying actual global examples of regulations and tasks that experience effectively spurred call for in built and rising markets alike. This publication is meant for coverage makers, managers of telecommunications and different know-how businesses, in addition to lecturers and graduate scholars within the components of public coverage, monetary improvement, and expertise management.
This booklet is an eye-opener for coverage makers. regularly ICT coverage has serious about the provision aspect. Katz and Berry enhance nice rules to leapfrog net penetration from the call for part, the place the price of the net is. - Diego Molano Vega, Minister of data applied sciences and Communications of Colombia
This publication is an quick vintage. It brilliantly and convincingly lays out the case why facing insufficient net penetration has moved from the construction of provide to at least one of encouraging call for. It presents an information-rich and well-written presentation of the standards preserving again humans from changing into clients, and provides a highly priceless survey of a number of the courses around the globe to make the broadband net really helpful to humans all over. it's the type of publication writers during this box will use continually. - Eli Noam, Professor of Finance and Economics, Columbia enterprise School
This new learn by means of Katz and Berry examines the reason for nationwide broadband plans and the facts for his or her luck in using call for. It offers the most recent information on broadband in a number of case research nations, and gives most sensible perform recommendation for policy-makers and improvement practitioners. - Dr Tim Kelly, Lead ICT coverage professional, global Bank
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Additional info for Driving Demand for Broadband Networks and Services
9). In stage 1, at lower levels of adoption, the factor constraining penetration is supply-driven. Price does not play a significant role because the first group of adopters is relatively price insensitive. 1. The second variable affecting broadband adoption is device availability. For example, Chinn and Fairlie (2010) found in their study of Internet usage in 161 countries between 1999 and 2001 that the main factors affecting adoption are possession of a computer and awareness of benefits. Ono and Zavodny (2007) confirmed this finding; relying on microdata for United States from 1997 to 2003, they found that the possession of a computer to use Internet remains the main barrier.
Again, this percentage was substantially less than those households that alluded to the affordability barrier (16 %). Interestingly enough, in a similar study conducted in 2010 (OFCOM 2012), the affordability barrier was mentioned by 23 % of households surveyed. This suggests that, as prices for broadband service decline, the cultural relevance factor gains in importance. In other words, from a policy standpoint, once the economic obstacles are tackled and affordability becomes less of an explanatory factor of non-adoption, the lack of relevance or interest variable gains weight.
Asian countries like Hong Kong, Japan, and Singapore, for instance, have some of the world’s fastest growing aging populations. Even in these countries, seniors appear resistant to broadband use and adoption. 7 Programs addressing the generational gap will be presented in Sect. 2. 3 Lack of Content Relevance or Interest Since broadband is a platform used to access Internet content, applications, and services, the relevance of such content offers an incentive to purchase a subscription. Conversely, the lack of cultural relevance could serve as a barrier to adoption.