Information Technology Reference
In-Depth Information
Several empirical studies have linked the use
and adoption of broadband technology to various
measurements of both economic and job growth;
however, such analyses have not been undertaken
specifically with regard to mobile broadband dif-
fusion. In part, this is due to data limitations that
exist due to the relatively recent emergence of
mobile broadband technology.
Additionally, as the goal of ubiquitous broad-
band adoption increasingly is proposed, policy-
makers will find it necessary to determine which
demographic or socio-economic groups are least
likely to be included in the achievement of this
goal. To that end, a clear understanding of char-
acteristics of individuals who access the Internet
through various means, and such individuals'
patterns of use can help to determine appropri-
ate policies for reaching such individuals and
for providing information on benefits of Internet
applications likely to be important to them.
To add to studies focusing primarily on fixed
broadband adoption, we include analyses of mobile
and nomadic broadband adoption and consumer
usage patterns. Specifically, we consider charac-
teristics of broadband users by access type and
relevant socio-economic and demographic vari-
ables, and we analyze usage patterns by access
type, also including relevant explanatory variables.
cable for broadband access. Japan is emphasizing
FTTH in its broadband policies, and also relies on
DSL. There also are countries, such as Portugal,
where wireless broadband is expanding rapidly.
Whether customers view these various technolo-
gies as providing equivalent broadband access
is important for public policy reasons: a country
that is predominant in one broadband technology
may be so because regulatory policies include
technology biases. Such a country could be at a
competitive disadvantage if its populace would
find a different mix of technologies to be more
productive economically and socially. On the
other hand, if alternative broadband technologies
are close substitutes, then a country could waste
resources promoting a change in technology mix.
Another important consideration for under-
standing the roles of various broadband tech-
nologies is the context within which broadband
penetration occurs. According to Schwab and
Porter (2007), the most competitive economies
in the future will be those that are innovation-
driven. Broadband is instrumental in creating
opportunities for innovation in a modern economy.
A study by Van Ark and Inklaar (2005) supports
this assertion, finding that the economies that
have experienced the greatest economic impacts
from information technologies are those that have
leveraged those technologies to create entirely
new products and ways of doing business. Still,
broadband alone does not promote innovation;
the Global Competitiveness Index includes nu-
merous economic and legal features of a country
that should be present if broadband is to reach its
potential impact.
1
Studies of fixed broadband adoption and de-
ployment are numerous. Holt and Jamison (2008)
provide an overview of various economic impact
studies, but such studies of broadband's effects
suffer from the problem of endogeneity (i.e.,
information that comes from the model cannot
be used to explain the model). For example, if
it is observed that economic development and
broadband adoption are positively correlated, how
BACKGROUND
The economic importance of broadband is well
accepted, but there is much that we do not know
about how various technologies of broadband
delivery differ in their commercial viability, ef-
fectiveness, and value. In some countries, such
as the United States, customers often can choose
between fixed technologies (such as DSL, fiber
to the home (FTTH), and cable), and can access
wireless broadband through WiFi and third gen-
eration mobile (3G). In other countries, where
cable television is less well developed, custom-
ers generally do not have the option of choosing
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