Driving Demand for Broadband Networks and Services

This book examines the reasons why various groups around the world choose not to adopt broadband services and evaluates strategies to stimulate the demand that will lead to increased broadband use. It introduces readers to the benefits of higher adoption rates while examining the progress that developed and emerging countries have made in stimulating broadband demand. By relying on concepts such as a supply and demand gap, broadband price elasticity, and demand promotion, this book explains differences between the fixed and mobile broadband demand gap, introducing the notions of substitution and complementarity between both platforms. Building on these concepts, Driving Demand for Broadband Networks and Services offers a set of best practices and recommendations aimed at promoting broadband demand. The broadband demand gap is defined as individuals and households that could buy a broadband subscription because they live in areas served by telecommunications carriers but do not do so because of either economic, limited awareness, or lack of digital literacy reasons. This grouping represents a range from 30% of the population in the US, 40% in Germany, and over 80% in most emerging countries. Research indicates that broadband usage is critical for social development, economic performance, and overall welfare and so it behoves governments to encourage demand. This study is the first of its kind to address the demand side of broadband diffusion, incorporating an economic analysis while offering real world examples of policies and initiatives that have successfully spurred demand in developed and emerging markets alike. This book is intended for policy makers, managers of telecommunications and other technology companies, as well as academics and graduate students in the areas of public policy, economic development, and technology management. This book is an eye-opener for policy makers. Traditionally ICT policy has focused onthe supply side. Katz and Berry develop great ideas to leapfrog Internet penetration from the demand side, where the value of the Internet is. - Diego Molano Vega, Minister of Information Technologies and Communications of Colombia This book is an instant classic. It brilliantly and convincingly lays out the case why dealing with inadequate internet penetration has moved from the creation of supply to one of encouraging demand. It provides an information-rich and well-written presentation of the factors holding back people from becoming users, and offers a hugely valuable survey of the various programs around the world to make the broadband internet truly useful to people everywhere. It is the kind of book writers in this field will use constantly. - Eli Noam, Professor of Finance and Economics, Columbia Business School This new study by Katz and Berry examines the rationale for national broadband plans and the evidence for their success in driving demand. It presents the latest data on broadband in a range of case study countries, and provides best practice advice for policy-makers and development practitioners. - Dr Tim Kelly, Lead ICT Policy Specialist, World Bank