Using new measures of expanded Internet access in China and internet-based search, we examine how competitive shocks from China impact U.S. innovation through the markets for innovation and existing products. We identify shocks to innovation competition using the geography of Chinese internet penetration and Chinese import data. Increases in the ability of Chinese industry peers to gather knowledge through the internet are followed by reductions in U.S. R&D investment and subsequent patents, and increased patenting by Chinese firms. The new Chinese patents also cite the U.S. firms patents at a high rate, consistent with increased intellectual property competition. Institutional subscribers to the NBER working paper series, and residents of developing countries may download this paper without additional charge at www.nber.org.
{"title":"Internet Access and U.S. - China Innovation Competition","authors":"Gerard Hoberg, Yuan Li, G. Phillips","doi":"10.3386/W28231","DOIUrl":"https://doi.org/10.3386/W28231","url":null,"abstract":"Using new measures of expanded Internet access in China and internet-based search, we examine how competitive shocks from China impact U.S. innovation through the markets for innovation and existing products. We identify shocks to innovation competition using the geography of Chinese internet penetration and Chinese import data. Increases in the ability of Chinese industry peers to gather knowledge through the internet are followed by reductions in U.S. R&D investment and subsequent patents, and increased patenting by Chinese firms. The new Chinese patents also cite the U.S. firms patents at a high rate, consistent with increased intellectual property competition. \u0000 \u0000Institutional subscribers to the NBER working paper series, and residents of developing countries may download this paper without additional charge at www.nber.org.","PeriodicalId":412625,"journal":{"name":"PSN: Infrastructure & Communication (Topic)","volume":"13 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"122272304","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
In this paper we examine Intel’s launch of Centrino and interpret it as platform leader’s attempt to restructure a supply chain. We provide a narrative of key actions and how they coordinated changes and offer a framework of the predictable consequences for complementary markets. We then collect data and test these predictions on outcomes in several related complementary markets. The overall findings are consistent with our framework. We show that the launch of Centrino increased the likelihood of exit from internal and external Wi-Fi cards markets, and we find that the magnitude of the effect was largest for internal cards. We also show that the launch of Centrino’s stimulated product introduction in the markets for complements overall and find that the effect varied across type of routers. Finally, we show that experience with producing Wi-Fi cards shaped product introduction by router providers.
{"title":"Centrino and the Restructuring of Wi-Fi Supply","authors":"R. Fontana, S. Greenstein","doi":"10.3386/w27754","DOIUrl":"https://doi.org/10.3386/w27754","url":null,"abstract":"In this paper we examine Intel’s launch of Centrino and interpret it as platform leader’s attempt to restructure a supply chain. We provide a narrative of key actions and how they coordinated changes and offer a framework of the predictable consequences for complementary markets. We then collect data and test these predictions on outcomes in several related complementary markets. The overall findings are consistent with our framework. We show that the launch of Centrino increased the likelihood of exit from internal and external Wi-Fi cards markets, and we find that the magnitude of the effect was largest for internal cards. We also show that the launch of Centrino’s stimulated product introduction in the markets for complements overall and find that the effect varied across type of routers. Finally, we show that experience with producing Wi-Fi cards shaped product introduction by router providers.","PeriodicalId":412625,"journal":{"name":"PSN: Infrastructure & Communication (Topic)","volume":"231 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-08-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132283028","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The developing countries like India, are going through a huge shift from old cultural and social era to 21stcentury new edge where the developed countries have already started taking the benefits of E-Retailing for their routine businesses. The citizens of developed countries have also accepted this transformation. But India is still far from this transformation. This paper focuses on various characteristics of social, cultural, economic and infrastructural issues which are becoming the hurdle for the acceptance of E-Retailing in a developing country like India. The findings identify the solutions required to accept the changes in retail to E-Retail for Indian customers. The paper also provides guidance businesses to implement the solution in business structures by understanding the demands of future market. It also helps to governments of developing countries to take concrete decisions for changing customer’s future needs to service them in competitive world.
{"title":"E-retailing Issues in Developing Countries Like India","authors":"Dr Kamini Khanna","doi":"10.2139/ssrn.3436617","DOIUrl":"https://doi.org/10.2139/ssrn.3436617","url":null,"abstract":"The developing countries like India, are going through a huge shift from old cultural and social era to 21stcentury new edge where the developed countries have already started taking the benefits of E-Retailing for their routine businesses. The citizens of developed countries have also accepted this transformation. But India is still far from this transformation. This paper focuses on various characteristics of social, cultural, economic and infrastructural issues which are becoming the hurdle for the acceptance of E-Retailing in a developing country like India. The findings identify the solutions required to accept the changes in retail to E-Retail for Indian customers. The paper also provides guidance businesses to implement the solution in business structures by understanding the demands of future market. It also helps to governments of developing countries to take concrete decisions for changing customer’s future needs to service them in competitive world.","PeriodicalId":412625,"journal":{"name":"PSN: Infrastructure & Communication (Topic)","volume":"51 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-08-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127846215","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Directive (EU) 2019/770 of the European Parliament and of the Council of 20 May 2019 on certain aspects concerning contracts for the supply of digital content and digital services and Directive (EU) 2019/771 of the European Parliament and of the Council of 20 May 2019 concerning contracts for the sale of goods, amending Regulation (EU) 2017/2394 and Directive 2009/22/EC, and repealing Directive 1999/44/EC were published in the Official Journal of the European Union on 22 May 2019. They represent a major challenge for consumer law at European level. More and more areas of the law are being harmonised, coming closer to comprehensive regulation of consumer contracts at EU level. Even though Directive 2019/771 gives more freedom to Member States than Directive 2019/770, the similarities between the two Directives are clearly more significant than the differences. This could be an interesting opportunity for the Member States, which may decide to adopt a unified legal regime on conformity and lack of conformity for all consumer contracts.
{"title":"Sale of Goods and Supply of Digital Content and Digital Services – Overview of Directives 2019/770 and 2019/771","authors":"Jorge Morais Carvalho","doi":"10.2139/ssrn.3428550","DOIUrl":"https://doi.org/10.2139/ssrn.3428550","url":null,"abstract":"Directive (EU) 2019/770 of the European Parliament and of the Council of 20 May 2019 on certain aspects concerning contracts for the supply of digital content and digital services and Directive (EU) 2019/771 of the European Parliament and of the Council of 20 May 2019 concerning contracts for the sale of goods, amending Regulation (EU) 2017/2394 and Directive 2009/22/EC, and repealing Directive 1999/44/EC were published in the Official Journal of the European Union on 22 May 2019. They represent a major challenge for consumer law at European level. More and more areas of the law are being harmonised, coming closer to comprehensive regulation of consumer contracts at EU level. Even though Directive 2019/771 gives more freedom to Member States than Directive 2019/770, the similarities between the two Directives are clearly more significant than the differences. This could be an interesting opportunity for the Member States, which may decide to adopt a unified legal regime on conformity and lack of conformity for all consumer contracts.","PeriodicalId":412625,"journal":{"name":"PSN: Infrastructure & Communication (Topic)","volume":"104 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-07-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124056819","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2018-12-10DOI: 10.11575/SPPP.V11I0.43229
G. Fellows, Mukesh Khanal
We examine the role that the telecommunications sector plays in the Canadian Economy. This examination is predominantly based on an analysis of data from Canada’s system of National Accounts. Through examination of upstream and downstream value flows we itemize direct contributions of telecom in the form of upstream production generated by the sector, value added generated by the sector as well as downstream production. We also assess recent trends in telecom service levels, prices and the resulting labour income and investment behavior in the sector. Our assessment also includes projections of the relationship between telecom capital stock and overall Canadian GDP and GNP. We close with a discussion of the policy implications of the current regime of wholesale price regulation in the telecom sector and how this relates to investment incentives and by extension the overall health of the Canadian economy.
{"title":"The Economics of Telecommunications in Canada: A Backgrounder","authors":"G. Fellows, Mukesh Khanal","doi":"10.11575/SPPP.V11I0.43229","DOIUrl":"https://doi.org/10.11575/SPPP.V11I0.43229","url":null,"abstract":"We examine the role that the telecommunications sector plays in the Canadian Economy. This examination is predominantly based on an analysis of data from Canada’s system of National Accounts. Through examination of upstream and downstream value flows we itemize direct contributions of telecom in the form of upstream production generated by the sector, value added generated by the sector as well as downstream production. We also assess recent trends in telecom service levels, prices and the resulting labour income and investment behavior in the sector. Our assessment also includes projections of the relationship between telecom capital stock and overall Canadian GDP and GNP. We close with a discussion of the policy implications of the current regime of wholesale price regulation in the telecom sector and how this relates to investment incentives and by extension the overall health of the Canadian economy.","PeriodicalId":412625,"journal":{"name":"PSN: Infrastructure & Communication (Topic)","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2018-12-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"130099724","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
It is widely believed that the social contract, credited to Magna Carta of Englandin the 13th century and subsequent thinkers such as Thomas Hobbes, JohnLocke, is the major factor that has empowered the concept of civil society in theworld, starting from the West. This perspective paper suggests that althoughthat still holds to a large extent, the case of Indochina shows a diametrical, andunnatural, difference as civic engagement in social matters of deep influence wasborn out of the state’s necessity to tolerate diverging voices, either bycontrolling, empowering or engaging, in order to cope with social conflicts. Thisobservation gives rise to the need for further studies on the nature of theinformation-power nexus in the age of big data and social networks.
{"title":"The Internet and the Grassroots Foundation of Civil Society in Indochina","authors":"Q. Vuong","doi":"10.2139/ssrn.3465089","DOIUrl":"https://doi.org/10.2139/ssrn.3465089","url":null,"abstract":"It is widely believed that the social contract, credited to Magna Carta of Englandin the 13th century and subsequent thinkers such as Thomas Hobbes, JohnLocke, is the major factor that has empowered the concept of civil society in theworld, starting from the West. This perspective paper suggests that althoughthat still holds to a large extent, the case of Indochina shows a diametrical, andunnatural, difference as civic engagement in social matters of deep influence wasborn out of the state’s necessity to tolerate diverging voices, either bycontrolling, empowering or engaging, in order to cope with social conflicts. Thisobservation gives rise to the need for further studies on the nature of theinformation-power nexus in the age of big data and social networks.","PeriodicalId":412625,"journal":{"name":"PSN: Infrastructure & Communication (Topic)","volume":"8 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2018-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114348310","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
With increasing demand for wireless data and new requirements to uphold “net neutrality,” internet service providers try new methods to ensure their profits. Sponsored content, the archetype of “Zero-Rating,” allows the content provider to pay for the accrued traffic instead of the consumer. This paper shows, using a theoretical model, that allowing sponsored content has ambiguous results both on infrastructure investments and net welfare. Sponsored content may be used by the ISP to internalize additional profits of the content provider and thus motivate higher infrastructure investments, especially given very high network costs. However, given a sufficiently high profitability of the content provider, the internet service provider might be more interested in optimizing the income stream from the content provider than in the satisfaction of the consumer. This not only decreases effective network capacity but might also lead to a decrease in net welfare.
{"title":"Impacts of Sponsored Data on Infrastructure Investments and Welfare","authors":"M. Kies","doi":"10.2139/ssrn.3042563","DOIUrl":"https://doi.org/10.2139/ssrn.3042563","url":null,"abstract":"With increasing demand for wireless data and new requirements to uphold “net neutrality,” internet service providers try new methods to ensure their profits. Sponsored content, the archetype of “Zero-Rating,” allows the content provider to pay for the accrued traffic instead of the consumer. \u0000This paper shows, using a theoretical model, that allowing sponsored content has ambiguous results both on infrastructure investments and net welfare. \u0000Sponsored content may be used by the ISP to internalize additional profits of the content provider and thus motivate higher infrastructure investments, especially given very high network costs. However, given a sufficiently high profitability of the content provider, the internet service provider might be more interested in optimizing the income stream from the content provider than in the satisfaction of the consumer. This not only decreases effective network capacity but might also lead to a decrease in net welfare.","PeriodicalId":412625,"journal":{"name":"PSN: Infrastructure & Communication (Topic)","volume":"54 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2017-12-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"131491040","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
In this paper we study how the coexistence of access regulations for legacy (copper) and fiber networks shapes the incentives to invest in network infrastructure. To this end, we develop a theoretical model explaining investment incentives by incumbent telecom operators and heterogeneous entrants and test its main predictions using panel data from 27 EU member states over the last decade. Our theoretical model extends the existing literature by, among other things, allowing for heterogeneous entrants in internet access markets, as we consider both other telecom and cable TV operators as entrants. In the empirical part, we use a novel data set including information on physical fiber network investments, legacy network access regulation and recently imposed fiber access regulations. Our main finding is that more stringent access regulations for both the legacy and the fiber networks harm investments by incumbent telecom operators, but, in line with our theoretical model, do not affect cable TV operators.
{"title":"Speeding Up the Internet: Regulation and Investment in European Fiber Optic Infrastructure","authors":"Wolfgang Briglauer, C. Cambini, M. Grajek","doi":"10.2139/ssrn.2962532","DOIUrl":"https://doi.org/10.2139/ssrn.2962532","url":null,"abstract":"In this paper we study how the coexistence of access regulations for legacy (copper) and fiber networks shapes the incentives to invest in network infrastructure. To this end, we develop a theoretical model explaining investment incentives by incumbent telecom operators and heterogeneous entrants and test its main predictions using panel data from 27 EU member states over the last decade. Our theoretical model extends the existing literature by, among other things, allowing for heterogeneous entrants in internet access markets, as we consider both other telecom and cable TV operators as entrants. In the empirical part, we use a novel data set including information on physical fiber network investments, legacy network access regulation and recently imposed fiber access regulations. Our main finding is that more stringent access regulations for both the legacy and the fiber networks harm investments by incumbent telecom operators, but, in line with our theoretical model, do not affect cable TV operators.","PeriodicalId":412625,"journal":{"name":"PSN: Infrastructure & Communication (Topic)","volume":"88 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2017-05-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114921753","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
A. Breuer, Laura Blomenkemper, S. Kliesch, Franziska Salzer, M. Schädler, Valentin Schweinfurth, Stephen Virchow
This study adds to the debate on the contribution of digital Information and Communication Technologies (ICT) towards the improvement of local governance.Sub-Saharan Africa has been identified as a region where the achievement of development goals is hampered by a high degree of government centralisation. The recognition of decentralisation as a strategic imperative for development has contributed to the popularity of participatory development approaches (PDA) which aim at empowering local populations. Motivated by the rapid of mobile telephony in Africa, scholars and development practitioners have become increasingly interested in the possibility of utilising digital ICT in the context of PDA in the region. In the context of a decentralisation programme, the German KfW Development Bank is currently pilot testing an ICT-based citizen participation platform in several Togolese middle cities. The objective of the platform is two improve citizen participation, transparency, and accountability in local governance.This study presents a Social Network Analysis (SNA) that investigates the state of decentralisation in two of the Togolese cities in which KfW’s ICT-based citizen participation platform is being implemented.Based on the findings of the SNA, the authors discuss the potential of ICT-based participatory development approaches to strengthen local governance in general, and formulate specific recommendations for the further development of KfWs ICT-based citizen participation platform in Togo.
{"title":"Decentralisation in Togo: The Contribution of ICT-Based Participatory Development Approaches to Strengthening Local Governance","authors":"A. Breuer, Laura Blomenkemper, S. Kliesch, Franziska Salzer, M. Schädler, Valentin Schweinfurth, Stephen Virchow","doi":"10.2139/ssrn.2915509","DOIUrl":"https://doi.org/10.2139/ssrn.2915509","url":null,"abstract":"This study adds to the debate on the contribution of digital Information and Communication Technologies (ICT) towards the improvement of local governance.Sub-Saharan Africa has been identified as a region where the achievement of development goals is hampered by a high degree of government centralisation. The recognition of decentralisation as a strategic imperative for development has contributed to the popularity of participatory development approaches (PDA) which aim at empowering local populations. Motivated by the rapid of mobile telephony in Africa, scholars and development practitioners have become increasingly interested in the possibility of utilising digital ICT in the context of PDA in the region. In the context of a decentralisation programme, the German KfW Development Bank is currently pilot testing an ICT-based citizen participation platform in several Togolese middle cities. The objective of the platform is two improve citizen participation, transparency, and accountability in local governance.This study presents a Social Network Analysis (SNA) that investigates the state of decentralisation in two of the Togolese cities in which KfW’s ICT-based citizen participation platform is being implemented.Based on the findings of the SNA, the authors discuss the potential of ICT-based participatory development approaches to strengthen local governance in general, and formulate specific recommendations for the further development of KfWs ICT-based citizen participation platform in Togo.","PeriodicalId":412625,"journal":{"name":"PSN: Infrastructure & Communication (Topic)","volume":"5 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2017-02-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124593600","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
TABLE OF CONTENTS I. INTRODUCTION 2 II. UNDERSTANDING THE BARRIERS TO BROADBAND ADOPTION 5 A. Demand-Side Barriers 5 B. Supply-Side Barriers 7 C. Social Value 8 D. Global Adoption Data 9 III. A MODEL OF BROADBAND ADOPTION 11 A. Choosing the Number of Quality Tiers 13 B. Awareness, Literacy, and Promotion 16 C. Summary 17 IV. ADDITIONAL WAYS "FREE-BUT-LIMITED" ACCESS ENCOURAGES ADOPTION 18 A. Increasing Adoption by Ensuring Continuous Access 18 B. Adoption Programs as Connectivity Insurance 19 V. CONCLUSION 22 I. INTRODUCTION Broadband Internet service is seen as critical to economic and social progress, yet broadband is not ubiquitously available and, even where available, the adoption rate is often seen as being too low. Consequently, expanding broadband deployment and adoption are top policy goals in nearly every industrialized nation as well as in many developing regions. (1) It is not proving to be an easy task. Faced with many impediments of both a public and private nature, progress on improving availability and adoption has proven unsatisfactory, resulting in what is often described as a "digital divide" separating the information "haves" from the "have nots." (2) In the United States, for example, broadband adoption appears to have plateaued even while systematic differences in adoption rates exist among subpopulations. The global digital divide is even more pronounced. (3) In less-developed economies, the hurdles to availability and adoption are especially high and Internet adoption rates remain very low. Despite differences in the economic fundamentals of nations, the barriers to deployment and adoption are categorically of the same underlying nature. On the supply side, the lack of access to broadband is mostly a financial issue driven by the high infrastructure costs of network deployment relative to the revenue potential. (4) On the demand side, research consistently points to the related concepts of awareness and digital literacy, as well as affordability. (5) An effective policy for expanding broadband adoption, therefore, seemingly must expose consumers to broadband service, do so at very low prices (or even free), and yet secure sufficient revenue for network deployment, maintenance, and upgrades. Thus far, despite much effort and discussion, no government has found an effective solution to this complex problem. Private companies have begun their own search for methods to increase adoption, perhaps driven in part by altruism and in part by the pursuit of income. In the United States, for instance, Comcast's Internet Essentials program provides a subsidized 10-Mbps connection and low-cost computers to qualified lower-income households. (6) While privately funded, the program is connecting more households to the Internet than multibillion dollars efforts by the U.S. federal government. (7) Similarly, Facebook's Free Basics program helps to address the awareness and affordability barriers to adoption by offering consumers free acces
{"title":"Private Solutions to Broadband Adoption: An Economic Analysis","authors":"T. Beard, George S. Ford, Michael L. Stern","doi":"10.2139/ssrn.2913113","DOIUrl":"https://doi.org/10.2139/ssrn.2913113","url":null,"abstract":"TABLE OF CONTENTS I. INTRODUCTION 2 II. UNDERSTANDING THE BARRIERS TO BROADBAND ADOPTION 5 A. Demand-Side Barriers 5 B. Supply-Side Barriers 7 C. Social Value 8 D. Global Adoption Data 9 III. A MODEL OF BROADBAND ADOPTION 11 A. Choosing the Number of Quality Tiers 13 B. Awareness, Literacy, and Promotion 16 C. Summary 17 IV. ADDITIONAL WAYS \"FREE-BUT-LIMITED\" ACCESS ENCOURAGES ADOPTION 18 A. Increasing Adoption by Ensuring Continuous Access 18 B. Adoption Programs as Connectivity Insurance 19 V. CONCLUSION 22 I. INTRODUCTION Broadband Internet service is seen as critical to economic and social progress, yet broadband is not ubiquitously available and, even where available, the adoption rate is often seen as being too low. Consequently, expanding broadband deployment and adoption are top policy goals in nearly every industrialized nation as well as in many developing regions. (1) It is not proving to be an easy task. Faced with many impediments of both a public and private nature, progress on improving availability and adoption has proven unsatisfactory, resulting in what is often described as a \"digital divide\" separating the information \"haves\" from the \"have nots.\" (2) In the United States, for example, broadband adoption appears to have plateaued even while systematic differences in adoption rates exist among subpopulations. The global digital divide is even more pronounced. (3) In less-developed economies, the hurdles to availability and adoption are especially high and Internet adoption rates remain very low. Despite differences in the economic fundamentals of nations, the barriers to deployment and adoption are categorically of the same underlying nature. On the supply side, the lack of access to broadband is mostly a financial issue driven by the high infrastructure costs of network deployment relative to the revenue potential. (4) On the demand side, research consistently points to the related concepts of awareness and digital literacy, as well as affordability. (5) An effective policy for expanding broadband adoption, therefore, seemingly must expose consumers to broadband service, do so at very low prices (or even free), and yet secure sufficient revenue for network deployment, maintenance, and upgrades. Thus far, despite much effort and discussion, no government has found an effective solution to this complex problem. Private companies have begun their own search for methods to increase adoption, perhaps driven in part by altruism and in part by the pursuit of income. In the United States, for instance, Comcast's Internet Essentials program provides a subsidized 10-Mbps connection and low-cost computers to qualified lower-income households. (6) While privately funded, the program is connecting more households to the Internet than multibillion dollars efforts by the U.S. federal government. (7) Similarly, Facebook's Free Basics program helps to address the awareness and affordability barriers to adoption by offering consumers free acces","PeriodicalId":412625,"journal":{"name":"PSN: Infrastructure & Communication (Topic)","volume":"14 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2017-02-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124749969","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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