| By: |
Georg Götz (Justus-Liebig-University Gießen, Department of Economics) |
| Abstract: |
This paper reexamines the effect of the regulatory regime on both penetration
and coverage of broadband access to the internet. The framework also allows
for an evaluation of different public policy measures such as subsidization of
broadband demand and supply. A welfare analysis asks what the optimal
regulatory regime is and whether and how high-speed access to the internet
should be subsidized. Using an approach similar to Valletti et al. (2002), the
paper highlights the importance of population density for whether firms invest
to provide internet access. The analysis reveals a trade-off between coverage
and penetration. |
| Keywords: |
Broadband, coverage, penetration, investment, population density |
| JEL: |
L51 L96 L12 |
| Date: |
2009 |
| URL: |
http://d.repec.org/n?u=RePEc:mar:magkse:200924&r=ict |