Abstract
The adoption of broadband is a major policy issue for all countries. The objective of this paper is to identify factors which lie behind mobile broadband diffusion (3G + 4G mobile phones) by focusing on smartphones. Broadband consists of fixed and mobile (or wireless), and the former consists of DSL, cable modem, and FTTH. His paper focuses on the latter. In so doing, among 34 OECD member countries, the US, UK, France, Germany, Korea, and Japan are selected, since these six countries represent more than 50% of the total population and the number of mobile handsets in these 34 countries. Based on the data from 2000 to 2012, panel data analysis is employed. Estimates from the results of this analysis show that the introduction of smartphone, competition in the market in terms of HHI, and FTTH diffusion are factors in mobile broadband adoption. In particular, the result for HHI can be applied to the current issue of “consolidation”, namely the merger of mobile carriers. The result indicates that consolidation should not be approved by regulators.
