The Determinants of Household Demand for Mobile Broadband in Indonesia

Abstract

Based on the Global Information Technology 2013 report, mobile broadband user in Indonesia is increasing at 70% per year as well as internet users will grow from 55 million in 2012 to 125 million in 2015, which is expected to accelerate as Unfortunately, there are still drawbacks in understanding of potential benefits from widespread access to mobile broadband due to the lack of government efforts as well as studies in capturing demand of mobile broadband nationwide. The study concludes that income plays a less important role in its effect on mobile broadband access than geographical area, indicating that affordability is not an issue to further develop broadband. The importance of geographical characteristics confirms the studies by Rappoport (2002) and Steinberg, Degagne and Dough (2008). The fact that urban areas, and Java and its cities, are more developed in terms of broadband development leads to a need to develop infrastructure more evenly throughout the country