The Impact of Regulation and Competition on the Adoption of Fiber-based Broadband Services: Recent Evidence from the European Member States

Publication: Working/Discussion PaperWU Working Paper

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Fibre deployment of next-generation high-speed broadband networks is considered to be a decisive
development for any information-based society, yet investment activities and especially the adoption
of fibre-based broadband services take place only very gradually in most countries. This work
identifies the most important determinants of the adoption of fibre-based broadband services, using the
most recent panel data from the European Union member states (EU27) for the years from 2004 to
The results show that the stricter previous broadband access regulation has a negative impact on
adoption, while competitive pressure from mobile networks affects adoption in a non-linear manner. It
appears that the approach of strict cost-based access regulation embedded in the EU regulatory
framework is at odds with the targets outlined in the European Commission's "Digital Agenda".
Finally, we also find strong evidence for network effects underlying the adoption process. (author's abstract)
Original languageEnglish
Place of PublicationVienna
PublisherForschungsinstitut für Regulierungsökonomie, WU Vienna University of Economics and Business
Publication statusPublished - 2013

Publication series

SeriesWorking Papers / Research Institute for Regulatory Economics

Bibliographical note

Earlier version

WU Working Paper Series

  • Working Papers / Research Institute for Regulatory Economics

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