IGI global handbook of research on global diffusion of broadband data transmission jan 2008 ISBN 1599048515 pdf

This chapter provides an in-depth analysis of the impact of policy issues on broadband Internet access in Australia.. Independent of these poli-cies however, social factors can also have

on Global Diffusion of Broadband Data

Hershey • New York

INFORMATION SCIENCE REFERENCE Volume I

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3URGXFWRUFRPSDQ\QDPHVXVHGLQWKLVVHWDUHIRULGHQWL¿FDWLRQSXUSRVHVRQO\,QFOXVLRQRIWKHQDPHVRIWKHSURGXFWVRUFRPSDQLHVGRHV not indicate a claim of ownership by IGI Global of the trademark or registered trademark.

Library of Congress Cataloging-in-Publication Data

Handbook of research on global diffusion of broadband data transmission / Yogesh K Dwivedi, Anastasia Papazafeiropoulou, and Jyoti Choudrie, editors.

p cm.

Summary: “This book explores broadband adoption and the digital divide through a global perspective, it provides research on constructs such as relative advantage, utilitarian outcomes, hedonic outcomes, and service quality From over 100 noted experts in nearly 30 countries, WKLVZRUNDOORZVSROLF\PDNHUV,QWHUQHWVHUYLFHSURYLGHUVDQGRWKHUVWRJDLQPXOWLFXOWXUDOLQVLJKWLQWRZKDWIDFWRUVLQÀXHQFHFRQVXPHUV¶ decisions to adopt broadband” Provided by publisher.

ISBN 978-1-59904-851-2 (hardcover) ISBN 978-1-59904-852-9 (e-book)

1 Internet users Attitudes 2 Digital divide 3 Internet service providers 4 Consumer behavior 5 Broadband communication systems 6 Globalization Social aspects I Dwivedi, Yogesh Kumar II Papazafeiropoulou, Anastasia III Choudrie, Jyoti

TK5103.4.H36 2008

¶GF

2007052995

British Cataloguing in Publication Data

A Cataloguing in Publication record for this book is available from the British Library.

All work contributed to this book set is original material The views expressed in this book are those of the authors, but not necessarily of the publisher.

If a library purchased a print copy of this publication, please go to http://www.igi-global.com/reference/assets/IGR-eAccess-agreement.pdf

To Athina

To my dearest, wonderful, encouraging and supportive Mum, Dad and Bobby

Foreword xxxi Preface xxxiv Acknowledgment xlvi

Volume I

Chapter I

Broadband Adoption and Diffusion (BAD): A Framework / Yogesh K Dwivedi

and Anastasia Papazafeiropoulou 1

Section I National Policies Division I Africa Chapter II

South Africa: The Long Walk to Broadband Freedom / Justin Henley Beneke 13

Division II Asia

Chapter VII

Structural Changes and Regulatory Challenges in the Japanese Telecommunications Industry /

Hidenori Fuke 90

Division III Australia and New Zealand

Chapter XI

Digital Divide and Broadband Access: The Case of an Italian Region / Enrico Ferro,

J Ramon Gil-Garcia and Natalie Helbig 160

Chapter XII

Improving Broadband Access in Rural Areas / Ingjerd Skogseid 177

Chapter XIII

Metropolitan Broadband Networks: Design and Implementation Aspects, and Business Models /

Antonios Alexiou, Christos Bouras, John Papagiannopoulos and Dimitris Primpas 196

Chapter XIV

Small World: The Irish Broadband Experience / Diana Wilson, Kevin O’Reilly,

and Dave Murray 211

Chapter XV

Social, Political, and Ethical Responsibility in Broadband Adoption and Diffusion:

$*HUPDQ&DVH6WXG\Axel Schulz, Bernd Carsten Stahl, and Simon Rogerson 227

Chapter XVI

Competition in Broadband Provision and the Digital Divide /

Wei-Min Hu and James E Prieger 241

Division I Australia Chapter XIX

Factors Affecting Broadband Adoption for Mainstream Consumers / Peter Adams 306

Division II Europe

Chapter XX

Developing a Dynamic View of Broadband Adoption / Herbert Daly, Adrina Ortiz,

Yogesh K Dwivedi, Ray J Paul, J Santos, and J.M Sarriegi 322

Chapter XXI

Employing the Content Validity Approach for Improving the Content of the Broadband

Adoption Survey Instrument / Yogesh K Dwivedi, Banita Lal, and Khalil Khoumbati 337

Chapter XXII

Inside the Microcosm: A Case Study of a Wireless Internet Hotspot / Pierre Vialle, Olivier Epinette,

and Olivier Segard 349

Chapter XXIII

7KH8VHVDQG*UDWL¿FDWLRQVRI%URDGEDQG,QWHUQHW

Karianne Vermaas and Lidwien van de Wijngaert 366

Chapter XXIV

Factors Affecting Attitudes towards Broadband Adoption in the Kingdom of Saudi Arabia /

Vishanth Weerakkody 380

Division IV North America

Chapter XXV

Characteristics of Farm and Rural Internet Use in the United States /

Peter L Stenberg and Mitchell Morehart 395

Division V South America

Chapter XXVI

Broadband User Behavior Characterization / Humberto T Marques Neto, Leonardo C.D Rocha,

Pedro H.C Guerra, Jussara M Almeida, Wagner Meira Jr., and Virgilio A.F Almeida 408

Volume II

Chapter XXVII

Precisions about the Broadband Divide in Chile / Sergio Godoy and M Soledad Herrera 427

Section III Small and Medium-Sized Enterprises (SMEs)

Division I Asia

Chapter XXVIII

A Survey on the Adoption and Usage of Broadband Internet / Roya Gholami, John Lim,

and Sang-Yong Tom Lee 448

Division II Europe

Chapter XXIX

Broadband Access and Broadband-Based Applications: An Empirical Study of the Determinants of

Adoption Among Italian SMEs / Massimo G Colombo, Luca Grilli, and Cinzia Verga 466

Chapter XXXI

Environmental Drivers of E-Business Strategies Among SMEs /

Alessandro Arbore and Andrea Ordanini 493

Chapter XXXII

([SORULQJ60(V¶$GRSWLRQRI%URDGEDQGLQWKH1RUWKZHVWRI(QJODQGBoumediene Ramdani

and Peter Kawalek 504

Chapter XXXIII

External Pressures for Adoption of ICT Services among SMEs /

Andrea Ordanini and Alessandro Arbore 524

Section IV Impact on Emerging Applications

Division I Entertainment Industry

Chapter XXXIV

IPTV Business Model Analysis / Kate Carney Landow, Michelle Fandre, Raghu Nambiath,

Ninad Shringarpure, Harvey Gates, Artur Lugmayr, and Scott Barker 538

Chapter XXXV

The Impact of the Internet on the Law and Economics of the United States Motion

Picture Industry / Stanford L Levin, John B Meisel, and Timothy S Sullivan 563

Division II Health Industry

Chapter XXXVI

Broadband for Health in Developing Countries / Aradhana Srivastava 581

Chapter XXXVII

Improving Health Services via Advanced ICT Networks / Peter Farr, Isabelle Ellis,

and John Royle 593

Chapter XXXVIII

Remote Patient Monitoring in Residential Care Homes:

Using Wireless and Broadband Networks /

Tanja Bratan, Malcolm Clarke, Joanna Fursse, and Russell Jones 604

Chapter XXXIX

Social Consequences of Broadband Access in Japan / Kenichi Ishii 619

Division IV Communication

Chapter XL

Internet-Based Changes in Organizational Communication /

Erik Lundmark and Alf Westelius 637

Chapter XLI

8ELTXLWRXV&RPPXQLFDWLRQYLD5HVLGHQWLDO*DWHZD\VAlex De Smedt 655

Section V Cross-Country Analysis

Diffusion of Broadband Access in Latin America /

Arturo Robles Rovalo, Claudio Feijóo González, and José Luis Gómez-Barroso 711

Chapter XLV

Diffusion Forecasting and Price Evolution of Broadband Telecommunication

Services in Europe / Dimitris Varoutas, Christos Michalakelis, Alexander Vavoulas,

and Konstantina Deligiorgi 729

Chapter XLVI

Explaining Patterns of Broadband Deployment and Adoption in OECD Countries /

Inmaculada Cava Ferreruela 756

Chapter XLVII

ICT Statistics for Broadband Promoting Regulatory Policy /

Diana Korsakaite and Tomas Lamanauskas 776

Chapter XLIX

The Adoption of Broadband Internet in Australia and Canada /

Catherine Middleton and Shanton Chang 818

Chapter L

The Evolution of Broadband Industry in the Developing World:

A Comparison of China and India / Nir Kshetri, and Nikhilesh Dholakia 841

Acknowledgment xlvi

Volume I

Chapter I

Broadband Adoption and Diffusion (BAD): A Framework / Yogesh K Dwivedi

and Anastasia Papazafeiropoulou 1

The aim of this chapter is to outline various factors reported in the 49 chapters of this handbook of research 7KHDLPLVDOVRWRRUJDQL]HLGHQWL¿HGIDFWRUVLQDPHDQLQJIXOPDQQHULQRUGHUWRSURSRVHDIUDPHZRUNRIbroadband adoption and diffusion This chapter illustrates the fact that research on the adoption, diffusion, usage, and impact of broadband is clearly a global issue which requires a multidisciplinary approach The proposed framework includes three levels of factors—macro factors, individual micro factors, and SME-level micro factors These three levels of factors are relevant at different levels of development, deployment, and diffusion of broadband which persist in various developed and developing countries The chapter concludes by suggesting that the proposed framework is based on a comprehensive set of factors observed in various countries, and future studies may use this framework to identify gaps and then bridge those gaps by conducting new studies

Section I National Policies

This section examines the macro or supply-side factors affecting broadband deployment and diffusion

in various countries including Australia, Bangladesh, Germany, Greece, India, Ireland, Italy, Japan, New Zealand, Norway, South Africa, South Korea, Taiwan, and the United States of America A number of pertinent factors and issues including national policy, market competition, ICT competency, structural changes, regulatory challenges, rural access, socio-political and ethical responsibility, and digital divide DUHGLVFXVVHGLQWKLVVHFWLRQ7KHVHFWLRQLVIXUWKHURUJDQL]HGLQWR¿YHGLYLVLRQVDFFRUGLQJWRWKHJHR-graphical areas where the studies included in this section were conducted

Chapter II

South Africa: The Long Walk to Broadband Freedom / Justin Henley Beneke 13

South Africa has fallen behind its international peersboth developing and developed marketsin the race to rollout broadband services In fact, even within the African continent, it is neither the broad-band leader nor progressive in comparison to its Northern African counterparts This chapter explores the development of broadband services in South Africa, as well as touching on the challenges faced in bringing this phenomenon into the mainstream Reasons for the lack of diffusion and adoption of such VHUYLFHVSRLQWWRKLJKHQGXVHUFRVWVRIWKHVHUYLFHDYHU\OLPLWHGJHRJUDSKLFDOIRRWSULQWRIERWK¿[HGline and mobile broadband infrastructure, as well as a lack of computer literacy and an understanding of what broadband is able to offer The chapter looks at possible solutions, including introducing a greater degree of competition into the market to facilitate downward pressure on prices, as well as providing FRVWEDVHGDFFHVVWRLQWHUQDWLRQDOVXEPDULQH¿EHUFDEOHVDQGWKHXQEXQGOLQJRIWKHORFDOORRSWRIXUWKHUthis objective

Division II Asia

Chapter III

Bridging the Digital Divide through Broadband Deployment / Challa Radhakumari 30

This chapter provides a summary relating to the functioning of two projects in the two Southern States of India, Andhra Pradesh and Kerala, to show how through broadband deployment in rural areas the digital divide can be bridged By focusing on the implementation of the two projects, the chapter illustrates their contribution in practically using the broadband technologies in overcoming the hurdles to bridging WKHGLJLWDOGLYLGHDQGKLJKOLJKWVWKHFULWLFDOVXFFHVVIDFWRUVDVLGHQWL¿HGGXULQJWKHIXQFWLRQLQJRIWKHprojects which helped the states in achieving their goals The chapter also reveals through its analysis that the accessibility of services through broadband technology has brought an opportunity to the citi-zens to become a part of the current knowledge revolution, besides bringing about a great technological transformation to the areas where it is implemented and thus contributed to bridging the digital divide The chapter is concluded by proving that moving from a manual to electronic process with broadband technology as an enabler; the two Southern States of India set an example, which will serve as a set of guidelines for application of similar projects in other geographical settings

Chapter IV

Broadband Policy, Market Competition, and User Adoption in Taiwan / Yu-li Liu 47

7DLZDQKDVEHHQPDNLQJJUHDWHIIRUWVWRSURPRWHWKHIXO¿OOPHQWRILWV1DWLRQDO,QIRUPDWLRQ,QIUDVWUXFWXUH(NII), with broadband network technology and its application having rapidly developed in recent years This chapter analyzes the broadband adoption, the competition among providers of broadband, and rel-evant policies in Taiwan The research methods adopted include a literature review, in-depth interviews,

Chapter V

ICT Competency of Bangladesh to Face Broadband Diffusion /

Anwarul Islam and K.C Panda 60

As a developing country, Bangladesh has taken keen initiatives to develop its sustainable information infrastructure Teledensity and overall IT infrastructure is now in a growing stage Recently, Bangladesh KDVEHHQFRQQHFWHGZLWK6($0(:(VXEPDULQHFDEOHHVWDEOLVKLQJDQRSWLFDO¿EHUEDFNERQHLWVteledensity is changing in rapid pace But, the broadband diffusion in Bangladesh is not on par with other Asian countries, since it is in an embryonic stage in broadband diffusion This chapter tries to show the initiatives taken and the existing condition of Bangladesh to fetch the countrywide broadband diffusion Efforts have been made to unmask the overall development of ICT infrastructure in Bangladesh to judge the environment of broadband diffusion in the country

Chapter VI

Socio-Cultural Interpretations to the Diffusion and Use of Broadband Services in a Korean

Digital Society / Dal Yong Jin 78

This chapter attempts to ascertain the causes of the rapid growth of broadband services in the context

of the broader socio-cultural elements It recognizes technology as a socio-cultural product which has historically been constituted by certain forms of knowledge and social practice, so this chapter explores cultural elements contributing to the diffusion of broadband services in the context of the cultural en-YLURQPHQWLQ.RUHD)XUWKHUWKLVFKDSWHUGLVFXVVHVWKHVLJQL¿FDQWUROHRIWKHSHRSOHDVXVHUVLQWKHprocess of the rapid diffusion and growth of broadband services In particular, it emphasizes the way in ZKLFKWKHHFRQRPLFFULVLVDVRQHRIWKHPRVWVLJQL¿FDQWVRFLRFXOWXUDOWXUQLQJSRLQWVLQPRGHUQ.RUHDQKLVWRU\KDVLQÀXHQFHGWKHGHSOR\PHQWRIEURDGEDQGVHUYLFHVDVKLJKVSHHG,QWHUQHWFRQQHFWLRQVhave developed since 1997

D HVVHQWLDOIDFLOLWLHVUHJXODWLRQE DXQLYHUVDOVHUYLFHV\VWHPDQGF DÀDWUDWHSULFLQJV\VWHPRIthe Internet to solve problems that are likely to distort the new industry structure and would stress the importance of a regulatory system that is competition, technology, and content neutral

Chapter VIII

$QDO\VLVRIWKH,QÀXHQFHRI$XVWUDOLD¶V*RYHUQPHQW3ROLF\RQ%URDGEDQG,QWHUQHW$FFHVV

Qiuyan Fan 109

Like many other governments in the world, the Australian government has taken a multi-faceted approach

to promoting broadband Internet access This chapter provides an in-depth analysis of the impact of policy issues on broadband Internet access in Australia The primary goal of this chapter is to develop a holistic XQGHUVWDQGLQJRI$XVWUDOLD¶VQDWLRQDODSSURDFKHVSHUWDLQLQJWREURDGEDQG,QWHUQHWDFFHVV7KLVUHVHDUFKKDVFOHDUO\LQGLFDWHGWKDWWKHVWDWHRIEURDGEDQG,QWHUQHWDFFHVVLVFORVHO\UHODWHGWRWKHJRYHUQPHQW¶Vpolicy and regulatory framework The government has been basing its actions on market forces as a principal driver for broadband Internet connectivity However, market forces only play roles in improv-ing broadband Internet access in the major cities and have little effect in regional and rural Australia The research has indicated that the regulatory competition regime, by and large, has failed to address concerns of market dominance and market power in the telecommunications sector as is evidenced by

a relatively lower price-performance ratio of broadband services in Australia

Chapter IX

Broadband for the Mass Market / Roger Saunders 126

This chapter suggests that there is no new application to stimulate adoption of broadband by the mass market Many new applications have been introduced but have not created the desired growth One application that could have mass market attraction is voice over Internet protocol (VoIP), and it is the most likely killer application But failure by major communications carriers to develop VoIP is slowing broadband penetration to this larger market segment It is postulated that this resistance results from the risk to current carrier call revenue from VoIP and that infrastructure to support high-speed broadband PD\QRWJHQHUDWHDGHTXDWHUHYHQXHLQWKHVKRUWWHUPWRVDWLVI\VKDUHKROGHUVRU¿QDQFLDOPDUNHWV1Rinternational standards have yet been set, and VoIP between the Internet platforms is not fully integrated Also the multitude of broadband packages offered by the various competing carriers creates confusion

in the mass market which, as a result, defers purchase decisions

and the choices made by consumers between different generational variants within that technology The case indicates a need for more research on the effect of telecommunications industry regulations

on demand-side uptake factors

Division IV Europe

Chapter XI

Digital Divide and Broadband Access: The Case of an Italian Region /

Enrico Ferro, J Ramon Gil-Garcia and Natalie Helbig 160

Reducing digital divide in order to build an information society for all is one of the top priorities for European policymakers A better understanding of the determinants of broadband access at the individual level represent a key starting point for any e-inclusion policy Based on a review of the literature on digital divide and broadband access, the authors document different approaches to understanding the digital divide and argue that these perspectives can also help to understand broadband access Combin-ing the digital divide and broadband literature provides a systematic and theory-based approach to the selection and inclusion of variables in different models This chapter presents a case study conducted LQDQ,WDOLDQUHJLRQ7KHDXWKRUVSURYLGHVRPHLPSOLFDWLRQVRIWKH¿QGLQJVDQGDUJXHWKDWSROLF\PDNHUVshould explore the relationship between IT skills acquisition, broadband access, and Internet use in order

to develop more effective policies and programs

Chapter XII

Improving Broadband Access in Rural Areas / Ingjerd Skogseid 177

The chapter explores the characteristics of rural broadband infrastructure development Taking the existing installed base into consideration, small rural communities can initiate bottom-up cultivation

of broadband infrastructure Such initiatives are important contributions to overcoming the disparity

in broadband access In effect, they aggregate demand by creating a larger total market for suppliers than the individual needs of the actors The proposal is to use descriptive clusters as a way to reveal the LQVWDOOHGEDVH$VHWRITXHVWLRQVDQGDQVZHUVZLOOEHGH¿QHGWRUHYHDOWKHLQVWDOOHGEDVH7KHUHVXOWLQJdata can be used to acquire an overview of the types of resources available and the choices that need to

be made The use of descriptive clusters places emphasis on the local context and culture With a tom-up strategy, questions must be answered in relation to the local context The responses and lessons learned may vary from one location to the next, making blueprint implementations impossible

bot-Chapter XIII

Metropolitan Broadband Networks: Design and Implementation Aspects, and Business Models / Antonios

Alexiou, Christos Bouras, Dimitris Primpas, and John Papagiannopoulos 196

This chapter presents the design principles that cover the implementation of broadband infrastructure in the region of Western Greece, by examining all the necessary parameters that arise while implementing

Patras, the third largest city of Greece and the Wireless Access Network of Messatida The major target

of the broadband networks is to interconnect the buildings of the public sector in the city and also deploy LQIUDVWUXFWXUH¿EHURUZLUHOHVVV\VWHPV WKDWZLOOFUHDWHFRQGLWLRQVRIFRPSHWLWLRQLQSURYLGLQJERWKDF-cess and content services to the advantage of the end consumer The usage of the broadband infrastructure

by service providers will be based on the open availability of the infrastructure in a cost-effective way 7KLVFKDSWHUDOVRSUHVHQWVWKHPDLQFKDUDFWHULVWLFVRIDSURSRVHGEXVLQHVVSODQWKDWHQVXUHV¿QDQFLDOviability of the broadband infrastructure and guarantees the administration, growth, and exploitation of infrastructure

Chapter XIV

Small World: The Irish Broadband Experience / Diana Wilson, Kevin O’Reilly,

and Dave Murray 211

In this chapter the authors consider from a marketing perspective the political, cultural/social, and nomic factors, both micro and macro, affecting the supply/demand nexus of broadband services for the Irish consumer This chapter charts the development of broadband and its current situation of rollout and uptake, examines the reasons for its continuing poor performance, and offers recommendations on how Ireland may close the gap and perhaps even move ahead Utilized data was collated from a variety

eco-of resources, journals and press and trade publications The authors attended a ministerial conference

on the state of broadband to which many representatives of the telecommunications industry had been LQYLWHG7KH\VXUYH\HGSHRSOHZLWKDQGZLWKRXWWKHIDFLOLW\DQGLQWHUYLHZHGNH\SOD\HUVLQWKH¿HOG7KHchapter concludes that, although the market is beginning to grow strongly, it is from a low base, and as

a result Ireland still lags behind many of its European counterparts There is still a lack of competition which is having an adverse effect on both supply and demand of broadband for the Irish domestic con-VXPHU,UHODQGLVDVPDOOFRXQWU\DQGWKHLQFXPEHQWVWLOOKROGVFRQWURORIWKHPRVWSUR¿WDEOHDUHDVRIWKHtechnology, particularly wholesale and selling to other operators Also, the Irish are still not convinced WKDWEURDGEDQGLVWKHµNLOOHUDSS¶WKH\QHHG7KLVPD\FKDQJHLQWKHIXWXUHDVWKHWHFKQRORJ\GHOLYHUVmore of the content-rich multimedia fare that the Irish already enjoy in other formats

Chapter XV

Social, Political, and Ethical Responsibility in Broadband Adoption and Diffusion:

A German Case Study / Axel Schulz, Bernd Carsten Stahl, and Simon Rogerson 227

There is considerable interest worldwide in broadband diffusion, with research focusing on aspects such as the provision of broadband in remote areas and the socio-economic factors that determine the OLNHOLKRRGRIDGRSWLRQ7KLVFKDSWHULGHQWL¿HVWKHSROLFLHVDQGLQLWLDWLYHVXVHGWRHQFRXUDJHEURDGEDQGawareness, availability, and adoption Using the case study of a local broadband initiative in remote and rural Germany, the chapter asks the question of who can and should be responsible for broadband provision, and how such responsibility ascriptions are realized

Chapter XVI

Competition in Broadband Provision and the Digital Divide / Wei-Min Hu

and James E Prieger 241

This chapter examines the supply of DSL broadband by the incumbent local exchange company (LEC) LQ¿YH86VWDWHVLQWKHHDUOLHU\HDUVRIGHSOR\PHQW(PSLULFDODQDO\VLVVKRZVWKDWLQFRPHRWKHUGH-mographics, and cost factors are important determinants of entry and availability After controlling for other factors, the racial characteristics of the area do not affect DSL provision Active competition in broadband from competitive LECs reduces deployment of DSL by the incumbent, but potential competi-tion from competitive LECs has the opposite effect Competition from cable companies also negatively LQÀXHQFHVWKHLQFXPEHQW¶VGHFLVLRQWRVXSSO\'6/7KHDXWKRUV¶REMHFWLYHLQJDXJLQJWKHLPSRUWDQFHRIthe various factors is to highlight the important drivers of broadband provision for policymakers

Chapter XVII

Governmental and Cultural Factors in Broadband Adoption / Elizabeth Fife, Laura Hosman,

and Francis Pereira 260

7KRXJKWKHSRWHQWLDOEHQH¿WVRIEURDGEDQG,QWHUQHWDGRSWLRQDUHJUHDWWKHOHYHOVRIWDNHXSYDU\JUHDWO\around the world Some governments have adopted aggressive policies to deploy broadband networks and to encourage the use of these applications, while others have not In the former cases, governments DUHPRWLYDWHGWRSURPRWHEURDGEDQGDGRSWLRQLQRUGHUWRUHDOL]HERWKHFRQRPLFDQGVRFLDOEHQH¿WV7KLVchapter argues that the high level of broadband adoption rates witnessed in certain Asian economies is attributable in part to the aggressive policies pursued by these governments Independent of these poli-cies however, social factors can also have an impact on whether broadband-related technology will be DGRSWHG(YHQLIHFRQRPLFDQGVRFLDOEHQH¿WVH[LVWWKHUHIRUHDVLQWKHFDVHRIWHOHPHGLFLQHLQWKH8QLWHGStates, cultural and social factors may in fact hinder the deployment of such applications and retard the growth rate of broadband access

Chapter XVIII

Regulation and the Deployment of Broadband / James E Prieger and Sunhwa Lee 278

This study examines the impact of telecommunications regulatory policy on broadband service PHQW8VLQJ86GDWDFRYHULQJDOOIRUPVRIDFFHVVWHFKQRORJ\FKLHÀ\'6/DQGFDEOHPRGHP DQGDOOareas served by major carriers, authors investigate the impact of state and federal regulation on broadband availability Alternative regulation increases the probability of broadband availability, particularly for price caps Unbundled network element (UNE) rates, the prices incumbent carriers charge to competi-tors for access to the local exchange network, also matter Areas with lower UNE rates have a slightly higher probability of broadband availability The effects of UNE rates on broadband deployment are ODUJHVWZKHUHLQFHQWLYHUHJXODWLRQLVLQSODFH7KHDXWKRUV¶REMHFWLYHLQH[DPLQLQJUHJXODWRU\IDFWRUVLV

deploy-to highlight the role of incentive regulation and local telecommunications competition policypolicies used or available around the worldin stimulating broadband service deployment

This section examines the micro or demand-side factors affecting broadband adoption and usage in various countries including Australia, Brazil, Chile, France, The Kingdom of Saudi Arabia, The Netherlands, the United Kingdom, and the United States of America Chapters included in this section provides in-depth discussion on socio-behavioral, attitudinal, and demographic factors affecting the adoption of broadband and the digital divide at the consumer level This section also focuses on broadband user behavior and characterization Similar to Section I, according to geographical area where studies (included within WKLVVHFWLRQ ZHUHFRQGXFWHGWKLVVHFWLRQLVIXUWKHURUJDQL]HGLQWR¿YHGLYLVLRQV

Division I Australia Chapter XIX

Factors Affecting Broadband Adoption for Mainstream Consumers / Peter Adams 306

7KLVFKDSWHUH[SORUHVZKHWKHUSDVWH[SHULHQFHVZLWKWHOHFRPPXQLFDWLRQVSURYLGHUVDQGFXUUHQWµSODQV¶RQRIIHUVHUYHDVEDUULHUVEHWZHHQDQLQGLYLGXDOFRQVXPHU¶VSHUVXDVLRQSKDVHRIWKHLQQRYDWLRQGHFL-sion process and the decision phase With broadband in approximately one-third of Australian homes,

it is important that telecommunications providers understand why the future mainstream segment of consumers will want to adopt broadband, and any barriers to this This analysis suggests studies are needed to investigate whether the telecommunications providers are collectively confusing potential broadband consumers in their attempts to differentiate a generic product in the market It argues that future technology adoption studies need to consider including the complexity of the actual purchase decision when developing constructs for quantitative models The author argues that if we are to build

a picture of why mainstream consumers adopt broadband, more than just the perceptions of using the technology itself need to be investigated

Division II Europe

Chapter XX

Developing a Dynamic View of Broadband Adoption / Herbert Daly, Adrina Ortiz,

Yogesh K Dwivedi, Ray J Paul, J Santos, and J.M Sarriegi 322

The widespread domestic use of broadband Internet technology has been recognized to have a positive LQÀXHQFHRQQDWLRQDOHFRQRPLHVDQGLPSURYHWKHOLIHRIFLWL]HQV'HVSLWHVXEVWDQWLDOLQYHVWPHQWWRGH-velop the infrastructure, many of the countries have experienced slow adoption rates for broadband This chapter develops a view of UK broadband adoption using dynamic modeling techniques based on an existing statistical study The contrasting approaches to modeling are compared Principles of a dynamic modeling system are introduced, and an appropriate form for broadband adoption chosen The process of building a dynamic model based on an existing static model of broadband adoption is presented Finally, the new perspective of the dynamic model is explored using the causal loop analysis technique

The overall aim of this chapter is to validate the content of the broadband adoption survey instrument IURPWKHKRXVHKROGFRQVXPHU¶VSHUVSHFWLYH7KHREMHFWLYHVRIWKLVFKDSWHUDUH¿UVWWRHQVXUHWKDWWKHLGHQWL¿HGFRQVWUXFWVDQGWKHLUUHVSHFWLYHLWHPVDGHTXDWHO\FRYHUUHOHYDQWGLPHQVLRQVRIIDFWRUVWKDWDIIHFWFRQVXPHUVLQWKHGRPDLQRIEURDGEDQGDGRSWLRQVHFRQGWRGHWHUPLQHZKHWKHUWKHLGHQWL¿HGFRQVWUXFWVand their respective items adequately cover relevant dimensions; and third, to conduct a pre-test and pilot WHVWRQWKHUHVXOWLQJVXUYH\LQVWUXPHQWVLQRUGHUWRREWDLQIHHGEDFNOHDGLQJWRLPSURYHPHQWVLQWKH¿QDOTXHVWLRQQDLUH7KHLQLWLDOLWHPVIRUHDFKFRQVWUXFWZHUHLGHQWL¿HGIURPERWKWKHWHFKQRORJ\DGRSWLRQOLWHUDWXUHDQGH[SORUDWRU\VWXGLHVRQEURDGEDQGDGRSWLRQ9DOLGDWLRQRIWKHLGHQWL¿HGLWHPVZDVWKHQSHUIRUPHGHPSOR\LQJDYDULDWLRQRIDTXDQWLWDWLYHDSSURDFKWRFRQWHQWYDOLGLW\7KH¿QGLQJVREWDLQHGfrom the content validation are then presented and subsequently discussed.

Chapter XXII

Inside the Microcosm: A Case Study of a Wireless Internet Hotspot / Pierre Vialle,

Olivier Epinette, and Olivier Segard 349

The objective of this chapter is to highlight critical elements affecting the diffusion of broadband less Internet at a hotspot location, through a case study The research deals with a wireless Internet services project in the main Paris airport, and comprises two components First, this chapter analyzes WKHHPHUJHQFHRIDYDOXHFKDLQIRUDQHZVHUYLFHEDVHGRQWKHFRRSHUDWLRQRIVHYHUDO¿UPV,QSDU-ticular, the authors show how different actors can or cannot position themselves on this value chain, according to their resources and capabilities Second, the authors explore the perceptions and attitudes

wire-of business passengers in order to better understand the potential adoption and use wire-of hotspot services, and provide a preliminary framework of analysis The research is drawn from a qualitative survey via in-depth interviews of potential suppliers (airline companies, service providers, airport managers) and business passengers

Chapter XXIII

7KH8VHVDQG*UDWL¿FDWLRQVRI%URDGEDQG,QWHUQHWKarianne Vermaas

and Lidwien van de Wijngaert 366

7KLVFKDSWHULGHQWL¿HVDVPDOOQXPEHURIUHODWLYHO\KRPRJHQHRXVJURXSVRI'XWFK,QWHUQHWXVHUVERWKbroadband and narrowband), based on their usage pattern Using individual and behavioral character-LVWLFVWKHDXWKRUVIXUWKHULQYHVWLJDWHWKHQDWXUHRIWKHGLIIHUHQWJURXSV7KH8VHVDQG*UDWL¿FDWLRQVapproach is employed as a starting point for an online survey Cluster analysis and logistic regression ZHUHXVHGIRUGDWDDQDO\VLV7KLVFKDSWHULGHQWL¿HVDQGSUHVHQWV¿YHFOXVWHUVRIGLIIHUHQW,QWHUQHWXVHUVbased on patterns of behavior Results show that the Internet users in the sample consist of a large group that more or less conducts the same online activities Results also show that narrowband and broadband users differ in their Internet behavior

Division IV North America

Chapter XXV

Characteristics of Farm and Rural Internet Use in the United States / Peter L Stenberg

and Mitchell Morehart 395

The Internet became enmeshed in U.S businesses management practices over the last decade During this period access and use of the Internet increased for all regions of the United States, most types of work places, and all income groups In this study, the authors examine Internet use by farm and rural workers, and proprietors using descriptive statistics and market demand analysis In their market de-mand analysis approach, the primary methodology the authors used is categorical dependent variable analysis The results indicate income is a critical element, though other factors such as age of proprietor DQGUXUDOXUEDQORFDWLRQDUHDOVRVLJQL¿FDQWLQPDUNHWGHPDQGGHWHUPLQDWLRQ

Division V South America

Chapter XXVI

Broadband User Behavior Characterization / Humberto T Marques Neto, Leonardo C.D Rocha,

Pedro H.C Guerra, Jussara M Almeida, Wagner Meira Jr., and Virgilio A.F Almeida 408

This chapter presents a broadband user behavior characterization from an Internet service provider standpoint Understanding these user behavior patterns is important to the development of more ef-

¿FLHQW DSSOLFDWLRQV IRU EURDGEDQG XVHUV7KH FKDUDFWHUL]DWLRQ GLYLGHV WKH XVHUV LQWR WZR FDWHJRULHVUHVLGHQWLDODQGVPDOORI¿FHKRPHRI¿FH62+2 DQGHPSOR\VIRXUFKDUDFWHUL]DWLRQFULWHULDVHVVLRQarrival process, session duration, number of bytes transferred within a session, and user request patterns

comprise traditional Internet services, such as WWW services, e-mail, and instant messenger; and (2) VHVVLRQVWKDWFRPSULVHSHHUWRSHHU¿OHVKDULQJDSSOLFDWLRQVEDVLFDOO\7KLVFKDSWHUDOVRDQDO\]HVDQGFODVVL¿HVWKHHEXVLQHVVVHUYLFHVPRVWFRPPRQO\DFFHVVHGE\XVHUVZKLFKGLGQRWYDU\VLJQL¿FDQWO\across the user categories.

Volume II

Chapter XXVII

Precisions about the Broadband Divide in Chile / Sergio Godoy and M Soledad Herrera 427

This chapter aims to quantify more exactly the adoption of broadband at the household level in Chile,

by assessing its impact on three types of digital divide: between users and non-users of the Internet, between usage at home and elsewhere, and between home broadband users and modem home users This was done by a statistical analysis of WIP-Chile surveys of 2003 and 2006 At least in Chile, the main digital gap is still between users and non-users of the Internet, both in terms of age and education level Income mainly affects the probability of having broadband access at home Since broadband has rapidly expanded among all socioeconomic segments, it is becoming less relevant as a predictor of ac-cess and Web usage Other factors are also weak predictors of both residential use of the Internet and broadband connections at home

Section III Small and Medium-Sized Enterprises (SMEs)

This section examines the factors affecting broadband deployment, diffusion, and use by SMEs in various countries including Italy, Singapore, and the United Kingdom According to geographical area where the studies (included within this section) were conducted, this section is further organized in two divisions

Division I Asia

Chapter XXVIII

A Survey on the Adoption and Usage of Broadband Internet / Roya Gholami, John Lim,

and Sang-Yong Tom Lee 448

search papers explicitly addressing issues pertaining to its adoption and post-adoption Previous research

7KLVFKDSWHUDUJXHVWKDWLQVSLWHRILQFUHDVLQJVLJQL¿FDQFHRIEURDGEDQG,QWHUQHWWKHUHDUHQRWPDQ\UH-on broadband has mainly focused 7KLVFKDSWHUDUJXHVWKDWLQVSLWHRILQFUHDVLQJVLJQL¿FDQFHRIEURDGEDQG,QWHUQHWWKHUHDUHQRWPDQ\UH-on the supply-side aspect at the nati7KLVFKDSWHUDUJXHVWKDWLQVSLWHRILQFUHDVLQJVLJQL¿FDQFHRIEURDGEDQG,QWHUQHWWKHUHDUHQRWPDQ\UH-onal level, ignoring the importance

of the demand side, which may involve looking more deeply into the use as well as the factors impacting

organizations in Singapore Overall, strong support for the integrated model has been manifested by the UHVXOWVREWDLQHGSURYLGLQJLQVLJKWLQWRLQÀXHQWLDOIDFWRUV$WWKHDGRSWLRQVWDJHSHUFHLYHGEHKDYLRUDOcontrol has the greatest impact on behavioral intention Findings also suggest that, as compared to atti-WXGHVXEMHFWLYHQRUPVDQGSHUFHLYHGEHKDYLRUDOFRQWUROPRUHVLJQL¿FDQWO\DIIHFWWKHEURDGEDQG,QWHUQHWadoption decision At the post-adoption stage, intention is no longer the only determinant of broadband ,QWHUQHWFRQWLQXDQFHUDWKHULQLWLDOXVDJHVLJQL¿FDQWO\DIIHFWHGEURDGEDQG,QWHUQHWFRQWLQXDQFH

Division II Europe

Chapter XXIX

Broadband Access and Broadband-Based Applications: An Empirical Study of the

Determinants of Adoption Among Italian SMEs /

Massimo G Colombo, Luca Grilli, and Cinzia Verga 466

Why do some small and medium enterprises (SMEs) adopt Internet broadband technologies (high-speed connection and complementary applications), and others do not? This chapter aims at analyzing the issue through an econometric investigation Relying on the (thin) previous empirical literature on the topic and focusing on a large and representative sample of Italian SMEs, we analyze the determinants of broadband connection and adoption of complementary applications Results of the econometric analysis UHYHDOWKDW DPRQJ¿UPVSHFL¿FFKDUDFWHULVWLFVVL]HDQGWKH¿UP¶VQHHGWRFRPPXQLFDWHDUHPDMRUdeterminants both of broadband connection and use of complementary applications, while indicators of

¿UPHI¿FLHQF\DQGRIWKHFRPSHWLWLYHSUHVVXUHVXIIHUHGIURPWKH60(SRVLWLYHO\DIIHFWRQO\WKHQXPEHU

of used applications, while not exerting any impact on the decision to connect; (2) among FL¿FFKDUDFWHULVWLFVWKHOHYHORIWHOHFRPPXQLFDWLRQVLQIUDVWUXFWXUHSRVLWLYHO\LQÀXHQFHVERWKFRQQHFWLRQand applications use, while the presence within the local labor market of a young and skilled workforce PDNHV60(VDGRSWPRUHDSSOLFDWLRQVDQG WLPHVSHFL¿FYDULDEOHVOLNHWKRVHUHODWHGWRWKHDFWXDODQGIXWXUHSULFHRIWKHKLJKVSHHG,QWHUQHWFRQQHFWLRQDIIHFW60(V¶GHFLVLRQVWRDGRSWEURDGEDQG7KHVH

location-spe-¿QGLQJVKDYHLPSRUWDQWLPSOLFDWLRQVIRUVXSSOLHUVDQGSROLF\PDNHUV

Chapter XXX

Broadband Diffusion to SMEs in the UK / Oluwasola Oni and Anastasia Papazafeiropoulou 481

Broadband is a relatively new technology, and its adoption in the United Kingdom has been an issue GXHWRLWVSHUFHLYHGEHQH¿WVIRUEXVLQHVVHVDQGPRUHVRIRU60(V,QWKLVFKDSWHUWKHDXWKRUVDUJXHWKDWprevious research focuses on home uses of broadband, particularly for educational purposes with little attention to its adoption by SMEs The authors argue that the existing diffusion of innovation theories are inadequate for the study of broadband diffusion, and they propose a more socio-technical approach for that purpose This study can be useful for SMEs considering adoption of new technologies such as broadband, as well as policymakers that seek to apply effective technological adoption policies

,QIURQWRIWUDGLWLRQDOLQWHUSUHWDWLRQVRIWKHGLJLWDOJDSEDVHGRQHQGRJHQRXVFRQGLWLRQVRIWKH¿UPVWKHauthors emphasize the importance that some external pressures may have on the e-business strategy of small and medium enterprises (SMEs) The environmental factors analyzed in this chapter are market position, competitive intensity, and institutional pressures SMEs have been grouped according to their level of e-business involvement, in relation to the number of e-business solutions adopted so far Three layers are proposed: excluded, tentative, and integrated e-business SMEs A general conclusion of this FKDSWHULVWKDWGLIIHUHQWPRGHOVVHHPWRH[SODLQH[FOXVLRQDQGLQYROYHPHQW6SHFL¿FDOO\WZRIDFWRUVamong those analyzed are revealed to be more suitable in explaining e-business exclusion They are the size of an SME and a lack of institutional pressures to adopt On the opposite side, this chapter suggests that e-business involvement seems to be primarily prompted by a selective competitive environment and not by imitative behaviors, as for the previous case.

Chapter XXXII

([SORULQJ60(V¶$GRSWLRQRI%URDGEDQGLQWKH1RUWKZHVWRI(QJODQG

Boumediene Ramdani and Peter Kawalek 504

7KLVFKDSWHUH[SORUHVWKHIDFWRUVLPSDFWLQJ60(V¶VPDOOWRPHGLXPVL]HGHQWHUSULVHV¶ ... the Handbook of Research on Global Diffusion

of Broadband Data Transmission.

The handbook is clearly a valuable resource, providing a timely and relevant collection of. .. stimulating diffusion of broadband, and national variants of this type of policy in different countries are important for an explanation of national differences in the adoption of broadband

Chapter... literature on the topic and focusing on a large and representative sample of Italian SMEs, we analyze the determinants of broadband connection and adoption of complementary applications Results of the