Fixed-line broadband: From ADSL to FTTH

This chapter will consider the structure of the fixed-line broadband market during the initial period of deployment, including observations based on econometric analysis. Fixed-line broadband began its explosive growth in Japan in 2001 when Softbank BB entered the market. Today, there are clear indi...

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Tipo de recurso:: Part of book

Fecha de publicación:: 2009

Institución:: Universidad de Bogotá Jorge Tadeo Lozano

Repositorio:: Expeditio: repositorio UTadeo

Idioma:: eng

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Summary:	This chapter will consider the structure of the fixed-line broadband market during the initial period of deployment, including observations based on econometric analysis. Fixed-line broadband began its explosive growth in Japan in 2001 when Softbank BB entered the market. Today, there are clear indications of a full-scale rollout of fiber to the home (FTTH) services, so it is widely believed that ADSL will be superseded by FTTH in the not-toodistant future. In this chapter I will consider fixed-line broadband from the following four points. First, citing data, I will examine the supply-side structure of fixed-line broadband. Taking up ADSL, FTTH, and CATV Internet in turn, I will examine trends in the number of subscribers, market shares, and price levels of each type of service. Second, I will consider the broadband user demand structure, based on a consumer questionnaire. I will examine peoples’ objectives in using the Internet, their reasons for selecting a particular service provider, and how and why they migrated from narrowband to broadband and from ADSL to FTTH Internet services. Third, I conduct a discrete choice model analysis based on the consumer questionnaire data. First, I will measure demand substitutability using actual revealed preferences (RP) data, focusing on the degree of price elasticity for the various services. Next, I consider the amount people claim they would be willing to pay for faster throughput using hypothetical choice situations and stated preferences (SP) data. Here, I focus on how the actual availability of FTTH affects consumers’ preferences. Fourth, I will address policy-related issues now under discussion including the definition of broadband markets, the state of effective competition in the ADSL market, and the degree of market dominance over the FTTH market.

Fixed-line broadband: From ADSL to FTTH

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