An empirical study of broadband diffusion in rural America

Glass, Victor; Stefanova, Stela

doi:10.1007/s11149-010-9119-y

Cited by 30 publications

(22 citation statements)

References 18 publications

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“…Consumer Focus, the public body representing consumer interests in basic markets, has promoted "Consumer Vulnerability Action" in markets which provide basic goods and services (Stearn 2012 It is in the context of these emerging concerns about introducing better demandside policy that this paper seeks to examine closely the empirical evidence on the relationship between satisfaction and consumers' socio-economic background. Glass and Stevanova (2010), which examine the relationship between Internet usage and consumers' socio-economic background.…”

Section: U N C O R R E C T E D P R O O Fmentioning

confidence: 99%

The impact of socio-economic background on satisfaction: evidence for policy-makers

2014

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Consumer satisfaction with utility services has received increased attention from firms, consumer associations, regulators and governments since the 1990s. Evidence is mounting that consumers in specific socioeconomic groups express lower satisfaction levels than their peers, at least, in some utility markets. Seeing this as part of their remit to protect consumer welfare, governments and international organizations are exploring possible demand-side policy responses with the intention of ameliorating lower satisfaction levels of these groups of consumers. However, more information on the precise relationships between satisfaction and consumers' socioeconomic background is required if policy is to be proportional and effective. This paper provides new empirical knowledge on this topic by contrasting consumers' stated and revealed preferences for five utility services (electricity, gas, fixed and cellular telephony and Internet) across twelve European countries. We find strong evidence that consumers' socioeconomic characteristics matter: consumers with lower levels of education, the elderly and those not employed exhibit particular expenditure patterns on, and lower satisfaction levels with, some utility services. However, this relationship is uneven and depends on the socioeconomic category and service in question. We conclude by highlighting five findings which may be of use to policy-makers when considering whether demand-side regulatory policies are required

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Section: U N C O R R E C T E D P R O O Fmentioning

confidence: 99%

The impact of socio-economic background on satisfaction: evidence for policy-makers

2014

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“…They interpret this as a quality effect, as data speeds feasible with ADSL tend to fall with increasing line length. However, Glass and Stefanova (2010) report no significant effect between mean distance to from exchange to customer and the decision to offer DSL service.…”

Section: Previous Research On Residential Broadband Adoptionmentioning

confidence: 87%

Timing and determinants of local residential broadband adoption: evidence from Ireland

Lyons

2014

Empir Econ

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This paper tests whether households that are offered broadband service for the first time tend to delay in taking it up. Using cross-sectional data on broadband takeup and socioeconomic characteristics of small areas in Ireland, linked to GIS data on ADSL availability, I find that local adoption rates are positively associated with the time elapsed since service was first offered. The strength of this association increases for the first two years after local enabling of service and then decreases to zero after about five years. The paper also includes estimates of the effect of various household characteristics on adoption, finding effects broadly consistent with previous literature. Simultaneity in demand and supply are addressed using 2SLS regression. Further research will be needed to explain the mechanisms behind lags in adoption behaviour, but those evaluating investments or subsidies in broadband infrastructure should such take lags into account.Corresponding Author: sean.lyons@esri.ie ESRI working papers represent un-refereed work-in-progress by members who are solely responsible for the content and any views expressed therein. Any comments on these papers will be welcome and should be sent to the author(s) by email. Papers may be downloaded for personal use only.

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“…Following Samuelson (1938), the economic theory of consumer behavior was based on RP, inferred from consumers' expenditure decisions in the market in response to different price combinations. RP reflected in expenditure patterns have been used, in the case of utilities, to evaluate the effect of regulatory reform of the British gas market on households with different socioeconomic characteristics (Hancock 1996;Gómez-Lobo 1996) and on internet usage according to consumer socio-economic background (Cardona et al 2009;Glass and Stevanova 2010).…”

Section: Data and Approachmentioning

confidence: 99%

How Consumers’ Socio-Economic Background Influences Satisfaction: Insights for Better Utility Regulation

2013

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An empirical study of broadband diffusion in rural America

Abstract: DSL, Demand, Universal broadband, Universal service, Intercarrier compensation reform, Rural America, Elasticity, Video, L51, L96,

Cited by 30 publications

References 18 publications

The impact of socio-economic background on satisfaction: evidence for policy-makers

The impact of socio-economic background on satisfaction: evidence for policy-makers

Timing and determinants of local residential broadband adoption: evidence from Ireland

How Consumers’ Socio-Economic Background Influences Satisfaction: Insights for Better Utility Regulation

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