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Article
Publication date: 19 June 2020

Pedro Fuentes Hernández, Rosa María Aguilar Chinea and Pedro Baquero Pérez

This paper aims to study the results of the public aid programmes, through supply-side subsidies, for ultra-fast next generation access (NGA) broadband deployment that have been…

Abstract

Purpose

This paper aims to study the results of the public aid programmes, through supply-side subsidies, for ultra-fast next generation access (NGA) broadband deployment that have been developed in The Canary Islands since 2013. These findings will, in turn, hopefully help the policymakers of archipelagos define their own ultra-fast broadband development plans.

Design/methodology/approach

An empirical approach has been used, based on the observation of the historical results obtained in the archipelago and the way broadband was diffused throughout the territory.

Findings

Results show that the broadband has developed asymmetrically in the archipelago, which, in turn, has caused the onset of a triple spatial digital divide. It was also observed that some aspects of the current way that such programmes are created and, consequently, the way that public funds are allocated, that could be improved and might help prevent geographical discrimination. Lastly, several insights have been presented for further investigation.

Originality/value

A large amount of scientific research has been carried out studying ultra-fast broadband NGA networks deployment. Less literature can be found on this topic when considering the specificities of fragmented territories like archipelagos. This paper tries to contribute with some empirical insights about such specific scenarios.

Details

Digital Policy, Regulation and Governance, vol. 22 no. 3
Type: Research Article
ISSN: 2398-5038

Keywords

Article
Publication date: 7 January 2014

François Jeanjean

This paper aims to investigate the impact of copper access regulation on broadband household adoption for each technology (xDSL on copper infrastructure, FTTx on fiber

Abstract

Purpose

This paper aims to investigate the impact of copper access regulation on broadband household adoption for each technology (xDSL on copper infrastructure, FTTx on fiber infrastructure and cable modem). It provides a forecast of the penetration rate of broadband access for each technology (copper xDSL, fiber, FTTx and cable modem) through 2020.

Design/methodology/approach

This paper uses an empirical approach using a dataset covering 15 European countries. The dynamic of the adoption path is modeled by a logistic function. Copper access regulation is measured by two variables: copper access charge and copper wholesale access share, i.e. the ratio of copper wholesale access provided by the incumbent to alternative operators out of the total number of copper accesses.

Findings

This paper shows that tough copper access regulation has a negative impact on fiber and cable modem adoption. Low copper prices decrease consumer adoption of other technologies. This reduces their profitability and thus the incentives to invest in alternative platforms.

Practical implications

This paper highlights that an increase in copper access charges or a decrease in copper wholesale access shares could help to achieve the objectives of the Digital Agenda for Europe.

Originality/value

This paper provides an empirical evidence of the impact of the copper access regulation on the fiber and ultra-fast broadband adoption from a dynamic point of view.

Article
Publication date: 7 January 2014

J. Scott Marcus and Dieter Elixmann

The purpose of the paper is to address the issue of demand for broadband access and the specific role that bandwidth plays in this context. The aim is to assess available

Abstract

Purpose

The purpose of the paper is to address the issue of demand for broadband access and the specific role that bandwidth plays in this context. The aim is to assess available empirical evidence regarding the dynamics of bandwidth consumption in different countries and to discuss implications for public policy regarding the deployment of ultra-fast broadband infrastructures, in particular vis-à-vis the Digital Agenda for Europe (DAE).

Design/methodology/approach

The approach adopted uses publicly available empirical data in order to derive patterns of the development of broadband demand in previous years as well as regarding current demand in specific countries. The authors contrast these findings with information on the deployment of broadband infrastructures in these countries.

Findings

The relationship between availability of fast broadband and the use of bandwidth by consumers appears to be richer and more complex than many have assumed. Availability of fast broadband does not alone appear to determine the level of use. This suggests that a more balanced approach between supply side and demand side measures is likely to be warranted.

Originality/value

The paper provides new evidence on the relationship between the speed of fast broadband infrastructure and its use by consumers.

Article
Publication date: 11 May 2015

Chatchai Kongaut and Erik Bohlin

The purpose of this paper is to propose a guideline for the European Union (EU) to support high-speed broadband development based on economic frameworks and successful countries…

Abstract

Purpose

The purpose of this paper is to propose a guideline for the European Union (EU) to support high-speed broadband development based on economic frameworks and successful countries, Korea and Sweden. In the past decade, both policymakers and academic scholars have so far emphasised broadband policy mostly on the supply side. Increasing broadband adoption, nevertheless, is important for the EU to meet its Digital Agenda. Therefore, demand-side policy is also needed to stimulate high-speed broadband adoption in the EU.

Design/methodology/approach

This paper applies frameworks of network externalities and the information and communications technology ecosystem to provide a better understanding of the relationship between supply- and demand-side policies. In addition, Korea and Sweden, which are two successful countries in high-speed broadband development particularly their demand-side policy, are chosen as a comparative case study.

Findings

Both supply and demand sides are important to broadband policy to achieve the EU Digital Agenda 2020. It is also important for the policymakers to consider that demand-side policy should complement the implementation of supply-side policy, not substitute it. The demand side can be a great driver, especially with the development of content and applications for high-speed broadband.

Originality/value

This paper fills the research gap on broadband policy on the demand side which is currently limited in comparison to the supply-side studies.

Details

info, vol. 17 no. 3
Type: Research Article
ISSN: 1463-6697

Keywords

Article
Publication date: 1 March 2013

William H. Melody

This paper intends to promote a re‐consideration of the most appropriate policy framework for implementing the European Union (EU) digital agenda.

Abstract

Purpose

This paper intends to promote a re‐consideration of the most appropriate policy framework for implementing the European Union (EU) digital agenda.

Design/methodology/approach

The paper examines relevant EU documentation and the related research literature on EU telecommunications reform within a context of economic market theory and policy analysis models.

Findings

The liberalization principle driving EU telecommunications reform for the past quarter century has stalled, and may be reversed by the policy framework adopted for implementing the digital agenda. The public sector broadband funding model is likely to be wasteful and ineffective. Other options for implementation should be considered.

Originality/value

This paper examines current EU policy shaping the development of broadband networks and the evolution of the digital economy and information society. It highlights the progress and limitations of EU policy as it has evolved as a reference for implementation of current policy objectives. It will be of value to policy makers, industry analysts and players, as well as researchers in academia and other institutions.

Content available
Article
Publication date: 7 January 2014

Luciano Morganti and Karen Donders

417

Abstract

Details

info, vol. 16 no. 1
Type: Research Article
ISSN: 1463-6697

Article
Publication date: 11 February 2021

Jilnaught Wong and Norman Wong

This paper aims to examine the economic rationale for the COVID-19 wage subsidy and grants related to assets and the accounting for these wealth transfers under NZ IAS 20

Abstract

Purpose

This paper aims to examine the economic rationale for the COVID-19 wage subsidy and grants related to assets and the accounting for these wealth transfers under NZ IAS 20 Accounting for Government Grants and Disclosure of Government Assistance. The principal contribution is presenting an economics–accounting nexus for government assistance to firms during a pandemic and for the nation’s economic development.

Design/methodology/approach

This is a descriptive study that draws on the economic theory of regulation to understand the rationale for wealth transfers, then examining the accounting for the wealth transfers by analyzing the financial statements of NZX 50 companies that received the wage subsidy and SkyCity and Chorus that received substantial grants to develop and operate the New Zealand International Convention Centre and building a large part of New Zealand’s Ultra-Fast Broadband fiber optic network, respectively.

Findings

First, the 10 NZX 50 companies that received the government’s wage subsidy were justified to receive it from the legal, ethical and moral perspectives. However, some non-NZX 50 companies, while legally entitled to the wage subsidy, took advantage of the wealth transfer when they were profitable and paid dividends. This latter group of companies was not seen as behaving ethically and morally. Second, the government granted millions of dollars to SkyCity and Chorus for building critical infrastructures that are economically beneficial for the nation and that are unlikely to attract private investment, and these companies accounted for the grants related to assets in accordance with NZ IAS 20.

Research limitations/implications

The financial statement impacts of the wage subsidy are based on a subset of NZX 50 companies with available information at the time of writing. However, they do not compromise the external validity of the findings because the wage subsidy applies to all businesses. Similarly, the manner in which SkyCity and Chorus accounted for the grants related to assets would apply equally to any entity that is a recipient of such a grant.

Originality/value

This paper presents an economic understanding for the existence of government grants and how the accounting mirrors the economic rationale for the “grants related to income” and “grants related to assets.” This paper demonstrates the importance of the economics–accounting nexus.

Article
Publication date: 14 March 2016

Martin Cave and Tony Shortall

The purpose of this paper is to consider circumstances when technological neutrality in fixed broadband (according firms the power to determine technological choices untrammelled…

Abstract

Purpose

The purpose of this paper is to consider circumstances when technological neutrality in fixed broadband (according firms the power to determine technological choices untrammelled by regulation or the operation of specific incentives) should be adopted.

Design/methodology/approach

The paper reviews the likely effect of such a policy on the competitive structure of fixed broadband markets, taking four case studies as examples.

Findings

The paper finds that choices made by broadband firms with respect to the adoption of fibre to the home versus fibre to the premise, the use of vectoring and the variant of fibre to the home adopted (point to point or point to multipoint) can have a significant effect on the nature of access products which can be provided and thus in the market structure of fixed broadband markets. Access providers can, thus, abridge or foreclose competition in downstream markets. Accordingly, regulators may decide to seek to influence such technological choices to promote competition. But this should be done carefully.

Originality/value

These issues are part of the on-going debate concerning the revision of the European regulatory framework for electronic communications services.

Details

info, vol. 18 no. 2
Type: Research Article
ISSN: 1463-6697

Keywords

Article
Publication date: 13 March 2017

Marolla Haddad and Carlo Maria Rossotto

This paper aims to explore how the Kurdistan Region of Iraq (KRI) can leverage broadband, as a frontier emerging market, to diversify the economy and promote growth, job creation…

Abstract

Purpose

This paper aims to explore how the Kurdistan Region of Iraq (KRI) can leverage broadband, as a frontier emerging market, to diversify the economy and promote growth, job creation and productivity. The objective is to analyze the challenges and opportunities of the broadband market and propose policies to boost its development and achieve medium to long-term economic benefits.

Design/methodology/approach

The paper uses qualitative and quantitative tools to study the legal and regulatory environment, market structure, competitive dynamics and available services and infrastructure in the KRI. The data and information analyzed were obtained through field research, primary data collection and consultation with government institutions, telecom operators and IT companies.

Findings

Obstacles to broadband development in the KRI are barriers to competition, the need for clearer and more transparent policies and regulations and a fragmented market. However, when the right conditions are in place, KRI has the potential to emerge as a regional hub for international broadband connectivity and significantly expand local broadband access.

Originality/value

This paper presents a first-of-its-kind baseline analysis of the telecom sector in the KRI. Very little information is available on the KRI market, which also has not been previously studied separately from the Iraqi market. Based on the fieldwork, the paper relies on region-specific data to analyze the particularity of the market and identify reforms within the prerogative of the regional government.

Details

Digital Policy, Regulation and Governance, vol. 19 no. 2
Type: Research Article
ISSN: 2398-5038

Keywords

Article
Publication date: 15 November 2021

Eduardo Krawietz Ramos, Rosa María Aguilar Chinea and Pedro Juan Baquero Pérez

This paper aims to study the competition problems and market failures in the Canary Islands and propose an alternative management model for the telecommunication transmission…

Abstract

Purpose

This paper aims to study the competition problems and market failures in the Canary Islands and propose an alternative management model for the telecommunication transmission network. This model is based on a wholesale-only open-access transmission network, available to all the retail service providers of this region, and managed by a unique entity subject to regulation with cost-based prices. The proposal hopefully will help to debate about the implementation of certain regulatory models in the network industries, concerning telecommunication submarine cables connecting archipelagos.

Design/methodology/approach

An empirical approach has been used, based on the observation and analysis of the regulatory policies applied to the wholesale transmission networks in the Canary Islands, Azores and Madeira archipelagos.

Findings

Results show a persistent margin squeeze situation on the retail broadband market in the Canary Islands, due to the pricing strategy on the Spanish mainland-Canaries wholesale market, which is, in turn, delaying the entry of alternatives and the level of development and efficiency of competition. The risk of duopoly collusion is also present on this wholesale market. Additionally, public aids will be needed to replace the systems connecting with the non-capital islands and to provide redundancy to El Hierro. The alternative proposal might help preventing the above. Eventually, several insights are considered for further investigation.

Originality/value

Little attention has been paid to this topic in the literature, regarding the analysis of regulatory policies applied over fiber optic submarine cable infrastructures in fragmented territories like archipelagos. Consequently, an empirical analysis has been accomplished to emphasize this research work, based on the regulatory policies adopted.

Details

Digital Policy, Regulation and Governance, vol. 23 no. 6
Type: Research Article
ISSN: 2398-5038

Keywords

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