Broadband adoption in Algeria and the structural determinants of its pace

Abstract

Using a 2003–2019 dataset on broadband adoption in Algeria, we explore its pattern and the market structure, institutional, and socio-economic factors that influenced its pace, which was considerably delayed due to political and social instability during the decade of the 1990s. We propose an integrative model selection approach that simultaneously searches for the best diffusion model among the Bass, Gompertz, and Logistic diffusion models, as well as relevant explanatory variables. The Logistic model chosen strongly aligns with Algeria's historical context compared to the Gompertz model selected by the standard sequential approach. Market concentration exhibits a U-shaped impact on adoption rates, while institutional quality, mobile technology, and higher education enrollment consistently have a positive impact. Introducing differentiated broadband access to stimulate competition and lower prices can promote adoption among sub-populations in Algeria who currently find it financially inaccessible. Additionally, broadband uptake can be further accelerated by enforcing transparent governance, supporting regulatory policies, and boosting digital literacy.