Evolution of the EU broadband policy: Towards an integrated framework?

Since more than two decades, broadband has been recognized in the EU as having great benefits to economic and social development.This recognition is evident in the first EU policy document on the telecommunications market - the 1987 Green Paper - which assumed that harmonization and liberalization through competition mechanism could be used as the tools to bring all those benefits to the European citizens. Although the policy in the following years emphasized the competition mechanism, many additional instruments were developed and implemented in order to make broadband available to all European citizen. Some instruments can be seen in the form of Directives, and some instruments are shown in many policy strategies. All of them have a considerable contribution to the growth of broadband deployment in the EU. However, with globalization, the policy impetus for broadband has shifted toward a means to increase competitiveness of a nation or region.This changing emphasis due to globalization and competitiveness impacts the design of policy instruments. A question can be raised which instruments can serve a new concept of future broadband policy. Against this background, the paper will present an evolutionary concept of broadband policy in the EU by providing a model to integrate the related broadband policy instruments. A timeline of all instruments and initiatives being implemented will be explored. This evolution will be analyzed in order to see what kind of future model is applicable when broadband policy is based on a perspective of globalization and regional competitiveness. The analysis will address how well the existing instruments can serve a new concept of broadband policy and what the needs are for new policy instruments and working structures. --network society,post-industrial society,broadband policy,the EU,sector,agenda,strategic agenda

Broadband universal service in Europe:A review of policy consultations 2005-2010

Recognition of the growing importance of broadband to the public presents challenges for policy-makers in introducing efficient strategies, not only to serve the increasing demand for broadband among people in society but also to increase their economic contribution both in the short run and in the long run. Different measures and strategies have been implemented in many countries and regions in order to encourage broadband deployment. Among them, the inclusion of broadband in the scope of universal service has been discussed.In the European Union, the discussion on broadening the scope of the Universal Service Directive (USD) to include broadband has been raised since the first periodical review in 2005. At that time, the European Commission concluded that only a small, although rapidly growing, minority of European consumers currently make use of broadband services. Therefore, the conditions for including broadband services within the scope of universal service as set out in the USD were not fulfilled. Later, the European Commission launched the second periodical review of universal service in 2008 with the preliminary conclusion that broadband has not yet reached the majority of people, implying that the conditions of the USD for expanding the scope of universal service were not yet fulfilled. However, the public consultation on broadening the scope of the USD to include broadband has been opened since March 2010 and was last on May 7, 2010. In the meantime, the public workshop organized in the context of the public consultation on universal service principles in e-communications was held on March 30, 2010. The workshop provided wide-ranging views on the topic, including an assessment of the cost of broadband availability and also the rapid change of broadband penetration rate throughout Europe. Against this background, this paper provides an analytical survey of the current state and trends of universal service with focus on broadband access in the European Union. First it presents an overview of broadband deployment and regulation in Europe. Then, it analyzes the USD reviews by taking into account the previous and the recent review, in particular by comparing the discourse evolution of the public submissions from stakeholders in the two consultations. A framework to evaluate broadband universal service will be provided. In conclusion, the paper will identify selected issues regarding broadband universal service in Europe, especially the pros and cons of broadband universal serviceuniversal service obligation, broadband, legislations, public consultaitons

Understanding the digital divide: A literature survey and ways forward

The term digital divide was introduced in the mid-1990s and defined as the gap separating those who have access to new forms of information technology from those who do not. The digital divide remains an important public policy debate that encompasses social, economic and political issues. This paper presents a literature review and classification scheme for digital divide research. The review covers journal articles published between 2001 and 2010 in three types of journals: (1) Information technology & information systems, (2) Economics and business & management and (3) Social science. A classification of digital divide literature and a comprehensive list of references are provided. The results show that the digital divide is a multifaceted phenomenon, due to the many dimensions of determinant factors. Recent studies have included socio-economic, institutional and physiological factors in order to gain a greater understanding of the digital divide. Among other findings, they show that technological determinism is not sufficient to explain the emergence of the digital divide. Moreover, several types of technologies were investigated, both from empirical and conceptual standpoints. The Internet is the most commonly studied technology. The divide in access and usage are discussed at the global, social and democratic levels by employing a quantitative method, either a survey or data analysis, as the main method. However, there is less discussion in developing countries and at the level of the organization (i.e. SMEs, the private sector and the public sector). The qualitative research method could be seen as a complementary method to fill the gap in the current research. The choice of policies which have been recommended to the policy maker and national regulatory agency (NRA) are also presented and discussed at the end of this paper. Several initiatives made at the country and regional levels and by international organizations have also attempted to create a combined policy. This may suggest that the combined policy is the current trend among digital divide policies. Therefore, there is a need for future research to examine these determinants through the context of global, social and democratic divides. The results would provide some insight into how diverse people in different areas adopt ICTs. --Digital divide,Literature review,Future research

On the ICT Economy in the European Countries: Investigating the Contribution of the ICT Sectors Using the Input-Output Model

Investigating the Contribution of the ICT Sectors Using the Input-Output Model Previous studies have been devoted to investigating the future of economic growth and examining the importance of technology and the ICT sectors in accelerating the growth of the economy. These studies are from a macro perspective that emphasizes the role of infrastructure investment, as well as from the firm level analysis, which is mainly related to cost efficiency. In addition, recent studies of the European countries indicate that the region is now facing a weakening effect regarding the contribution of the knowledge economy, which slows economic growth. This study aims at investigating the contribution of the ICT sectors in driving economic performance in the European economies with a sectoral approach using the Input-Output (IO) methodology. The method measures the contribution of ICT sectors based on the OECD's definition (2009) and decomposing it into several variables. In addition, the study focuses on investigating one decomposition factor related to technological change effects. The results indicate that the growth of ICT sectors' output declined considerably during 2000-2005 compared to 1995-2000. The decomposition analysis found that the ICT sectors have lost the advantage of export and technological change effects. It has also been ascertained that the smaller impact of technological change effects is due to the lack of connection between the ICT sectors and other sectors on the production side. At country level, this analysis consistently explains this phenomenon, especially in Germany and Spain but fails to detect it in France, where the technological change effect remains stable given the lack of connection between ICT sectors and the rest of the economy. --structural change,economic growth,ICT sectors,input-output,multiplier

Towards the alternative measurement: Discovering the relationships between technology adoption and quality of life in Indonesia

The vast majority of the studies investigating telecommunication development (diffusion of mobile phone, Internet, the broadband, etc.) that have been carried out in the literatures aim at assessing the impact on economic indicators, mainly the Gross Domestic Product (GDP), whereas little attention has actually been paid to investigate the other measurement which reflects a more direct linkage to the individual welfare, for instance the quality of life (QOL) indicators. Following the current counterargument for using the GDP as the goal of economic development, this paper investigates a survey data in Indonesia, observing the relationships between the experience to technology (the length of mobile phone ownership) and technology adoption (internet access) in affecting quality of life (QOL) at individual level. The QOL index is proxied by two indicators which are equally weighted; the objective measurement represented by income level and subjective perceived QOL following the study by Costanza et al., (2007). To operationalize these aims, the model is investigated in two sequential ways; first by determining binomial probit on the Internet access demand equation and then putting the predicted probability of the first equation into second equation of the ordered probit model. The model is further analyzed through the return to education-type equation (Card, 2001) to see the impact of experience to technology and internet access on the QOL index. The results indicate that whereas the access to the Internet is not statistically significant affecting QOL, experience to technology plays an important role. Additionally, the experience of technology (measured at its mean value of 3.5 years) affects the likelihood to have a lower QOL index around 49% and to achieve a higher QOL index in Indonesia around 12%. A year additional of ownership reduces the likelihood on a lower QOL by 3.6% and increases the likelihood to obtain a higher QOL by 2%. --technology,quality of life,ordered-probit,Internet

The Mobile Broadband and Fixed Broadband Battle in Swedish market: Exploring complementary or substitution

The mobile broadband (MBB) in Swedish market has become a more attractive opportunity for service providers, with growing demand for ubiquitous broadband connectivity after the mobile operators got 3G license in 2000. MBB seems to have more advantage compare to Fixed broadband (FBB) in term of mobility, compatibility and quality of service. This paper aims to explore the current broadband situation in Swedish market, in particular whether the mobile broadband is a complementary or substitute by using descriptive analysis. The data is collected from the Post- och telestyrelsen (PTS) Survey and the secondary data from PTS during 2002-2009. The findings indicate that the MBB and FBB subscribers remain growing, but the issue of complementary and substitution between MBB and FBB cannot be given an answer at this stage. The crucial problem of comparing MBB and FBB is the different units of measurement. Also, the potential of avoiding regulation by service providers is discussed since the market participants in FBB and MBB services are the same players. The rapid growth of MBB together with a lower degree of regulation in mobile services may attract the market player to put their effort more in MBB market. Moreover, the gap between broadband infrastructure coverage and the usage of this service is huge. Thus, the inefficiency of BB infrastructure utilization becomes another issue that NRAs could consider. --Mobile broadband,Fixed broadband,Complementary,Substitution

An Econometric Analysis of 3G Auction Spectrum Valuations

Scarce radio spectrum is assigned to mobile network operators (MNOs) by national regulatory authorities (NRAs). Spectrum is usually assigned by beauty contest or an auction. The process requires that winners make a payment to the government. MNOs seek scarce spectrum to enable the provision of wireless services for profit. While MNOs are imperfectly aware of their costs, NRAs rely solely on MNOs for this information. As such, NRAs set spectrum assignment conditions (including minimum bid price) largely ignorant of MNO operating conditions. This study examines the performance of 3G auction outcomes in terms of the prices paid by winners via an econometric analysis of a unique sample of national 3G spectrum auctions. These winning bids depend on national and mobile market conditions, spectrum package attributes, license process, and post-award operator requirements. Finally, model estimation accounts for the censored nature of these data.Mobile telephone markets, spectrum allocation, spectrum bid price

A global analysis of third generation mobile telecommunications market entry

National regulatory authorities (NRAs) attempt to encourage participation in spectrum assignments by enhancing entrants' likelihood of success. The question this study addresses is: Can NRA policy tools really affect the probability an entrant wins a 3G spectrum licence? In particular, the econometric analysis allows consideration of whether licence concession or mode of assignment encourages entry. The study finds that auction assignment processes only slightly increase the probability of entry, whilst price and quantity concessions have no impact. --Market entry,global mobile telephone markets,3G spectrum assignment

An analysis of mobile internet service in Thailand: Implications for bridging digital divide

Mobile Internet is growing around the world without exception for developing countries like Thailand by passing the poor legacy wired infrastructure. This study attempts to provide guidance to a national regulatory agency (NRA) by addressing the following question: What are the key determining factors to explain the probability that individual consumer will use mobile Internet? The discrete choice model is employed to empirically examine whether the service and application attributes, socio-economic variables and service provider has systematic link with the decision of consumer. The data from a national survey in 2010 commissioned by the National Telecommunications Commission (NTC) of Thailand is used for the analysis. Based on the findings, fixed telephony, e-mail, age, area of living and mobile operator are recognized as the strongest determinants for mobile Internet adoption. The findings suggest that the mobile Internet becomes an alternative technology to bridge the digital divide since a group of people who have no fixed Internet connection at home they can connect the Internet via mobile Internet. As such, telecom regulator and policy makers need to consider the policies regarding to infrastructure investment frequency allocation, content and application development and competition in order to stimulate the growth of mobile Internet adoption and close the digital divide within country. --Mobile Internet,digital divide,developing country

Will Broadband Networks Make the World Greener? Evaluating Pros and Cons of Broadband Development

The environmental issue has generally received much attention from the public for decades, especially as a result of heavy industry - electrical energy, oil and gas, mining, steel and metals. Recently, attention has been paid to Information and Communication Technology (ICT) and its effect on the knowledge and related industries. Broadband, both fixed and mobile, is not an exception. Even though it has been recognized as a factor that has contributed to social and economic development, anegative effect can also be seen in particular regarding the environment. This paper provides a review of how government policy, in particular by the EU and Japan, are moving towards the transition to sustainability by utilizing ICT, as well as an evaluation of the pros and cons of broadband development. There are many complex effects on sustainability due to ICT. Since ICT can have environmental effects both as enabling energy efficiency and causing rebound effects, the policies should respond to both direct and indirect effects. To facilitate policy analysis and recommendations, this paper categorizes ICT impacts by five orders of aggregation. These five orders of aggregation may contribute both positively and negatively to sustainability, and each level will need targeted policies. The five orders of aggregation suggest a comprehensive and long term view of policy development, encompassing even policies that seek to improve the quality of decision making in our societies, by utilizing ICTs.broadband, sustainable development, green ICT.