Abstract
Broadband access services are becoming popular at an increasing rate, especially in developed countries, for various applications including music download and video distribution. However, the number of broadband subscribers remains limited in most developing countries. In view of the enormous benefits of broadband, such as enabling people to comfortably access the Internet and transmit information at a low cost, it is important that its diffusion be encouraged by the government. To ensure effective measures for this, the government should understand the factors that actually contribute to the popularity of broadband services. In this study, the author conducts an empirical analysis using cross-country data to clarify the factors contributing to the diffusion of broadband access. It is found that on the demand side, broadband price, income level (only at the global level), dial-up price (only in developed countries) and users' capability (also only in developed countries) are significant factors. On the supply side, competition in the broadband market (both inter- and intra-modal), availability of existing networks and privatization (only at the global level) are significant factors. Based on these results, the author discusses the policy measures that may help promote the diffusion of broadband access.
JEL Classification: C31, L86, L96, L98, O33, O57
