Only a Few Roads lead to Rome: The Regulation of Entry and - - PowerPoint PPT Presentation

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Only a Few Roads lead to Rome: The Regulation of Entry and Broadband Performance Jos Maria Castellano Universitat Pompeu Fabra Acorn-Redecom Conference Mexico City, 4-5th September 2009 07/06/2010 1 Overview Basic Concepts

SLIDE 1

07/06/2010 1

Only a Few Roads lead to Rome: The Regulation of Entry and Broadband Performance

José Maria Castellano Universitat Pompeu Fabra Acorn-Redecom Conference Mexico City, 4-5th September 2009

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07/06/2010 2

Overview

Basic Concepts
Empirical Evidence
The Theoretical Framework
The Causal Model
The Methodology
The Data Analysis
Conclusions

SLIDE 3

Basic Concepts

 Broadband = Internet > = 256 kbit/s  Broadband Penetration = % inhabitants

with broadband subscription

SLIDE 4

Basic Concepts

 Broadband Performance = (% inhabitants

in ti -% inhabitants in t0) /ti-t0

 Market Entry Regulation = Legal

Requirements

SLIDE 5

Empirical Evidence

 Entry regulation do not explain

differences in broadband performance.

SLIDE 6

Empirical Evidence

Reg. /Perf.

High Medium Low High Denmark France Ireland Medium Estonia Lithuania Greece Low Finland Germany Italy

SLIDE 7

 Under what conditions does entry

regulation promote different broadband performances?

SLIDE 8

The Theoretical Framework

 Economic Factors

 GDP is 0.65 correlated with broadband

penetration

 Political and Institutional Factors

 Market Entry regulation is key for

invesment and innovation

SLIDE 9

SLIDE 10

The Theoretical Framework

 Technological Factors

 Path Dependence and Network Effects

 Social and Demographic Factors

 Urban areas (more density, education

and higher income)

SLIDE 11

The Causal Model

 Dependent Variable

 Broadband Performance

 Independent Variable

 Entry Regulation

 Other variables

 Education (secondary school dropout rate)  Income (GDP per capita)  Density (% inhabitant per m2)  Young Population (% population bn 18-24 y.o.)

SLIDE 12

The Methodology

Reg./Eco- demo-soc High Medium-Low High H1 H4 Medium H2 H5 Low H3 H6

SLIDE 13

The Methodology

 Method

 QCA

 Intensity/Large number of cases

 Data

 Broadband (OECD/ITU)  Regulation (PLAUT ECONOMICS)  Social, Economic and demographic

(EUROSTAT)

 Case selection

 27 EU  From 1996 to 2008

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The Data Analysis

High Broadband Performance

   Config. MedEnt

Reg Young Popul High Income MedSec School 1 P P P 2 P P 3 P P A

SLIDE 15

The Data Analysis

Medium Broadband Performance

  

Conf. MEntReg Youn Popul MedInc

MedSec School MedDen sity

1 P P P 2 P P 3 P P 4 P P 5 A P A 6 P A P

SLIDE 16

The Data Analysis

Low Broadband Performance

   Conf.

MEntReg Youn Popul MedInc

MedSec School MedDen sity

1 P 2 P P 3 A P

SLIDE 17

Conclusions

 The most common factors:

Country

MEntR eg Youn Popul High Incom e MedIn come Low Incom e MedS ecSch

MedD ensity

High

* *

Medium

* *

Low

* *

SLIDE 18

Conclusions

 Medium entry regulation interacts with:

Country

Youn Popul High Income MedInc

Low Income MedSec School MedDe nsity

High

P A

Medium

P P P

Low

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 Entry regulation is less important

 Young + high income = high bb

performance

 Medium income + Medium secondary

school dropout = medium bb performance

 Low income + medium density = low

bb performance

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 Medium entry regulation = high and

medium broadband performance countries.

 High broadband performance:

 Medium entry regulation + young

population – medium secondary school dropout

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 Medium broadband performance

countries:

 Medium Entry Regulation + Medium

Income + Medium Secondary School dropout + Medium density

 Low broadband performance

countries:

 No interaction

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Regulation helps but it does not cure!

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Thank you for your attention!