Productivity Questions for Public Sector Fast Fibre Network Financiers

Fast internet access is widely considered to be a productivity-enhancing factor. However, despite promises of substantial gains from its deployment, the evidence from recent empirical studies suggests that the productivity gains may not be as large as originally hypothesised. If substantiated, these findings suggest that current government plans to apply significant sums to bring forward the deployment of fast fibre networks (e.g. in both Australia and New Zealand) may not generate returns to the extent anticipated by their sponsors. Drawing upon the original ‘computer productivity paradox’ literature, this paper develops a critical questioning framework to assist policy-makers in identifying the salient productivity issues to be addressed when making the decision to apply scarce public resources to faster broadband network deployment. Using multiple literatures, the framework highlights the nuanced and highly complex ways in which broadband network speed may affect productivity, both positively and negatively. Policy-makers need to be satisfied that, on balance, government-funded investments in faster networks will likely generate the anticipated net benefits, given the significant uncertainties that are identified.Internet, broadband, productivity, public investment

Household technology acceptance heterogeneity in computer adoption

Technology policy analysis and implementation relies on knowledge and understanding of the "adoption gap" in information technologies among different groups of consumers. Factors that explain the residential "digital divide" also need to be identified and quantified. Through the application of survey data we provide an enhanced understanding of the key factors involved in the choice of residential computer adoption. These choices are analysed using a discrete choice model that reveals that sociodemographic factors strongly influence the adoption of the residential computer. Moreover, we apply the basic findings of the Technology Adoption Model (TAM) into the discrete choice framework heteroscedastically to deepen our understanding of why some households choose not to have computers; above and beyond what may be explained by socio-demography alone. Generally, we find that computer adoption is sensitive to household digital division measures and that the model fit improves with the heteroscedastic addition of the TAM factors. These findings are important for market planners and policymakers who wish to understand and quantify the impact of these factors on the digital divide across different household types, as defined by the TAM model

Demand for Internet Access and Use in Spain

The goal of this paper is to analyze a new phenomenon: Internet demand in Spain. To do so, we use a new high quality data set and advanced econometric techniques for estimating Internet demand functions, incorporating the socio-demographic characteristics of the individuals. We begin with a graphic analysis of the data, searching for relationships between the different characteristics. Then we specify and estimate two econometric models, one for broadband access at home and another for Internet use intensity. We also find that 25.2% of the Spanish population accesses the Internet at home, but less than half uses broadband connection. This demand is positively related to income and other technological attributes and negatively related to socio-demographic attributes such as habitat and age. Our results are compatible with previous literature for other countries, although there is a important difference: broadband Internet connections are still considered as a luxury good in Spain.Broadband, Internet Access, Internet Use, Selection Bias Correction, Multinomial Logit Models, marginal effects, elasticities.

Extreme Value Analysis of Teletraffic Data

An empirically verified characteristic of the expanding area of Internet is the longtailness of phenomena such as cpu time to complete a job, call holding times, files lengths requested, inter-arrival times and so on. Extreme values of the above quantities are liable to cause problems to the efficient operation of the network and call for effective design and management. Extreme-value analysis is an area of statistical analysis particularly concerned with the systematic study of extremes, providing useful insight to fields where extreme values are probable to occur and have detrimental effects, as is the case of teletraffics. In this paper we illustrate the main elements of this analysis and proceed to a detailed application of extreme-value analysis concepts to a specific teletraffic data set. This analysis verifies, too, the existence of long tails in the data.Teletraffic engineering, Long tails, Extreme-value index, Smoothing procedures

Feeding a need for speed or Funding a Fibre 'Arms Race'?

Fast internet access is widely considered to be a productivity-enhancing factor. However despite promises of substantial gains from its deployment the evidence from recent empirical studies sugests that the productivity gains may not be as large as originally hypothesised. If substantiated these findings suggest that current government plans to apply significant sums to bring forward the deployment of fast fibre networks (e.g. in both Australia and New Zealand) may ultimately be unlikely to generate returns to the extent anticipated by their sponsors.Drawing upon the critical literature generated when the original 'computer productivity paradox' called into question why investment in ICTs was apparently failing to generate anticipated productivity returns this paper develops a critical questioning framework to assist policy-makers in identifying the salient productivity issues to be addressed when making the decision to apply scarce public resources to faster broadband network deployment. Using multiple literatures the framework highlights the nuanced and highly complex ways in which broadband network speed may affect productivity both positively and negatively. Policy-makers need to be satisfied that on balance government-funded investments in faster networks will likely generate the anticipated net benefits given the significant uncertainties that are identified in the questioning framework

The impact of local ICT initiatives on social capital and quality of life

This paper reviews the evidence for the effects of local ICT initiatives (‘community networks’) on neighbourhood social capital and quality of life and has been developed from the public SOCQUIT D11 report (Anderson et al, 2006)

Survey of Landslide Warning Systems and their Applicability in Mauritius

Landslide is major problem in several countries causing loss of lives and major infrastructural damage. Several systems have been set-up for monitoring and predicting landslides in different countries where this problem is prevalent. These systems integrate sensing mechanism with communication systems and GPS to detect landslide conditions and alert concerned parties via sms, emails and other appropriate means. Wireless sensor networks have also been widely deployed for landslide monitoring. Mauritius which is an island nation situated in the Indian Ocean has recently faced several problems due to extreme climatic conditions such as torrential rains and flash floods that have led to major landslide problems in different parts of the island. However, to date, there is no adequate system in place to monitor landslides. This paper surveys the different landslide modelling and warning systems that have been deployed worldwide and assesses their suitability for Mauritius. Given the excellent mobile network coverage available in Mauritius, a landslide warning system based on sms notifications appears to be a viable solution for Mauritius. A potential framework for a landslide monitoring system for Mauritius is therefore proposed along with a feasibility analysis

Does broadband speed really matter as a driver of economic growth? Investigating OECD countries

This paper aims to measure the impact of broadband speed on economic growth in the OECD countries. All the variables used in this study were collected from OECD databases, except the speed data, which were gathered from Ookla, a company that provides broadband testing and web-based network diagnostic applications data on a daily basis. Quarterly balanced panel data for 33 OECD countries during the period 2008-2010 were examined. The study found that the estimated coefficient of broadband speed is statistically significant. The hypothetical result of this study shows that doubling the broadband speed will contribute 0.3% growth compared with the growth rate for the base year. The results convey that the impact of increasing broadband speed on GDP growth will largely depend on two aspects: 1) the size of the coefficient of the broadband speed (ß); 2) the existing economic growth in each country. Finally, the paper provides suggestions for future research in this vein and further calibration of future models

An evaluation of the broadband ecosystem in Western Downs region (WDR)

There is a large body of research on broadband adoption and use at the macro and national level, however, there is limited research on rural and remote areas. This research provides an in-depth understanding of the broadband ecosystem in terms of supply (broadband infrastructure), and household demand (adoption and use) of broadband Internet and its impact (building and maintaining social capital) in the Western Downs Region (WDR) of Queensland, Australia. Using the broadband ecosystem as an overarching framework, three phases and a mixed methods approach was used to conduct an in-depth explanatory case study of the WDR. The first research phase collected publicly available archival (primarily quantitative) data and field data from testing of mobile networks to determine and evaluate the status (supply) of broadband infrastructure in the WDR (RQ1). The second research phase collected primarily qualitative information using semi-structured interviews to address research questions (RQ2 and RQ3). The third phase, using a survey, collected quantitative data to validate and test broadband adoption, use and impact components of the broadband ecosystem (RQ2 and RQ3, 13 hypotheses). Thereby, the second and third research phase determined the extent of adoption and use of broadband Internet services by households and its impact in helping to build and maintain social capital in rural communities in the WDR. The research findings show that there are limitations in broadband infrastructure in remote and outer regional locations. In these locations, most households rely on mobile broadband services which were clearly demonstrated to be patchy at best in most areas of the WDR. To a lesser extent in remote and outer regional locations affordability of mobile broadband is also an issue for households given the lower socio-economic status of much of rural Australia including the WDR. Furthermore, data quotas are much more expensive for mobile broadband and satellite broadband in comparison to wired broadband. Hence, there would also appear to be a digital divide, particularly between remote and outer regional locations of the WDR and inner regional and urban locations in Australia. The researcher also demonstrated that this reflects a similar situation in many other remote and outer regional locations in Australia. The findings indicate that most households have moved beyond the adoption phase to the use phase and indicate that hedonic outcomes, self-efficacy and number of years of Internet use are significant determinants of actual use of broadband. Conversely, perceived cost, prior knowledge and experience factors were found to be significant determinants of intention to adopt and use broadband services. However, utilitarian outcomes and purchase complexity had no significant impact on intention to adopt and use. The study also found that broadband Internet use has significant impact for rural communities in the WDR by helping to build and maintain social capital (bonding and bridging). This research has made several important contributions to knowledge, theory and practice. Firstly, this research adapted the Broadband Ecosystem framework to incorporate system quality and impact components of information systems success theory, Technology Acceptance Model (TAM) and Model of Adoption of Technology in Household (MATH) technology adoption theories and two dimensions of social capital theory (bridging and bonding theory) which complement the overarching economic theory of supply and demand in this theoretical and conceptual model. Secondly, this research addressed an important gap in information systems research -the lack of empirical research on digital infrastructure. In this study, broadband infrastructure was included in a comprehensive evaluation of the broadband ecosystem in a rural setting, the WDR. Thirdly, by focusing on two units of analysis broadband infrastructure in a rural region and household adoption, and use and impact of broadband this study addresses important research problems from a societal and government policy perspectives. Fourthly, this research examined and validated the broadband ecosystem framework using mixed methods approach in a rural context. Finally, this research has made significant practical contributions which can inform government policy by identifying that availability, reliability and affordability shortcomings of broadband infrastructure in outer regional and remote regions is impacting household adoption, use and benefits of broadband services in rural Australia. Hence, future government policy needs to ensure that access to reliable and high speed broadband services is part of its Universal Service Obligation so that the current shortcomings in broadband infrastructure in rural Australia are prioritised and addressed. This study confirms that improved access and more effective use of broadband could help to address the digital divide that currently exists between rural and urban Australia and also help to build and maintain social capital in rural communities

The Need for Speed: Impacts of Internet Connectivity on Firm Productivity

Fast internet access is widely considered to be a productivity-enhancing factor. Internet access speeds vary regionally within countries and even within cities. Despite articulate pleas for network upgrades to accelerate internet access, there is little rigorous research quantifying benefits to individual firms that arise from upgraded internet connectivity. We use a large New Zealand micro-survey of firms linked to unit record firm financial data to determine the impact that differing types of internet access have on firm productivity. Propensity score matching is used to control for factors, including the firm’s (lagged) productivity, that determine firms’ internet access choices. Having matched firms, we examine the productivity impacts that arise when a firm adopts different types (speeds) of internet connectivity. Broadband adoption is found to boost productivity but we find no productivity differences across broadband type. The results provide the first firm-level estimates internationally of the degree of productivity gains sourced from upgraded internet access.Internet, broadband, productivity