nep-ict New Economics Papers
on Information and Communication Technologies
Issue of 2016‒03‒06
five papers chosen by
Walter Frisch
Universität Wien

  1. Mobile and more productive? Firm-level evidence on the productivity effects of mobile internet use By Bertschek, Irene; Niebel, Thomas
  2. Fiber to the People: the Development of the Ultra-broadband Network in Italy. By Carlo Cambini; Michele Polo; Antonio Sassano
  3. Economic determinants of optical fiber share in total broadband connections in OECD countries By Sudtasan, Tatcha
  4. How Much Does Speed Matter in the Fixed to Mobile Broadband Substitution in Europe ? By Michele Cincera; Lauriane Dewulf; Antonio Estache
  5. Measuring reservation prices for bundles of fixed telecommunications services By Sobolewski, Maciej; Kopczewski, Tomasz

  1. By: Bertschek, Irene; Niebel, Thomas
    Abstract: Mobile internet access allows for flexibility with respect to working time and working place. We analyse whether employees' use of mobile internet access improves firms' labour productivity. Our data set contains 2143 German firms and refers to the year 2014, when high-speed mobile internet was still at a relatively early stage of diffusion within firms. The econometric analysis shows that firms' labour productivity significantly increases with the share of employees with mobile internet access. Our instrumental variables approach reveals that mobile internet use does cause higher labour productivity.
    Keywords: Mobile Internet,Labour Productivity,Firm-Level Data
    JEL: D22 L20 O33
    Date: 2015
  2. By: Carlo Cambini; Michele Polo; Antonio Sassano
    Abstract: In this paper, we firstly revise the main technological solutions for ultra-fast broadband connections and summarize the main economic literature (both theoretical and empirical) on the role of regulation to support infrastructure investment in broadband networks We then move to the core of our analysis, that is to assess the relative positioning of the Italian market today in terms of deployment and penetration of broadband access, and then analyse the main relevant policy issues involved in the current Italian plans for broadband deployment. Our goal is to propose a policy framework for fostering the deployment of the Italian ultra-fast broadband network and evaluate the Government master plan. The analysis will also give the opportunity to provide our contribution to the current debate and to suggest how industrial policies in a market-oriented perspective should be re-considered.
    Keywords: Broadband network, regulation and investment, state aids.
    JEL: L51 L52 L96
    Date: 2016
  3. By: Sudtasan, Tatcha
    Abstract: This study realizes the benefits of optical fiber broadband as an economic stimulation thus it analyzes the determinants of optical fiber share in total broadband connections in OECD countries with the focus on the demand-driven factors and the government roles as the stimulator, the regulator and the investor in the optical fiber sector. It constructs a panel data set using the data during 2012-2014 and estimates the fixed and random effects model with the judgment of the best model by Hausman test. The results reveals that the share of optical fiber behaves well according to the demand theory on the own-price and cross-price effects. Education is a must to support the growth of optical fiber. The government roles differ in their effects, i.e. the role of stimulator and the regulation of local loop unbundling enhance the growth of optical fiber deployment and adoption while the role as the investor negatively impacts the share. Moreover, the study also examines the effects of government roles of regulation regarding to intra-platform competition on the unit price of optical fiber. It discovers that initially the larger number of competitors drives the unit price down by their competition, but later after the establishment of giant incumbent firms in the market and gain sufficient market power and the control over prices such that the number of new comers cannot affect the growing trend of the unit price of the optical fiber broadband.
    Keywords: Fixed broadband penetration,fixed broadband share,optical fiber internet,optical fiber share,consumer behavior
    JEL: L96 L52 D12
    Date: 2015
  4. By: Michele Cincera; Lauriane Dewulf; Antonio Estache
    Keywords: mobile; fixed; broadband; substitution; speed; econometrics; europe; deregulation; competition; ict
    JEL: D43 L43 L86
    Date: 2015–06
  5. By: Sobolewski, Maciej; Kopczewski, Tomasz
    Abstract: Bundling becomes a dominant sales strategy in telecommunications. Dual and triple-play packages are increasingly popular among subscribers. From operators’ perspective, a core issue in bundling design is the knowledge about how consumers value packages. In this paper we focus on elicitation of subscribers willingness to pay for bundles of fixed telecommunication services composed of telephony, Internet and paid TV. We conduct a stated preference discrete choice experiment on a sample of subscribers in Poland, to model subscription choices over packages of fixed services. We obtain estimates of mean willingness to pay as well as entire distributions of reservation prices for single services and possible combinations of bundles. We find that mean WTP for fixed telephony as a stand-alone service or an add-on to bundle is zero. This result suggest that fixed telephony has already become an obsolete service. Out of the three fixed services, Internet generates the biggest value for customers, driving up valuations of bundles. WTP for Internet is much higher than actually paid prices, leaving space for increase of profits. In contrast fixed telephony and pay TV seem to be overpaid which may create a pressure on operators’ revenue.
    Keywords: Bundling,stated choice experiment,willingness to pay,fixed telephony,fixed broadband,pay TV,dual play,triple play,fixed-to-mobile substitution
    JEL: C25 D12 L96
    Date: 2015

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