Factors Affecting Demand for Internet Access in Saudi Arabia

Abstract

As internet use in Saudi Arabia are dramatically increasing, a powerful demand is being laid down on internet service purpose where this paper aims at identifying major factors that influence these demand pertaining to internet services. Within a selected theoretical model, such multiple factors are being conceptualized and interrelated. Using time series data, the Ordinary Least Square (OLS) technique is employed to analyze the relationships. The results of the model indicated clearly that using the internet in Saudi Arabia is influenced most strongly by the number of educated people, the number of mobile subscribers, income, the number of fixed lines, and employment level. The results also suggest that demographic factors have a significant impact on the demand for internet, specifically, the number of educated people and levels of employment. This paper concludes with a recommendation on increasing the level of understanding of those the factors affecting practitioners who plan and promote new forms of internet services in the current competitive market.

Measuring the Effect of the Internet on Economic Growth: The Case of Saudi Arabia

“…To measure the effects of Internet usage on Saudi economic development, we proposed an econometric model within which the exact measure of this main exogenous variable would have to be clearly defined and which could measure an essential variation on the GDP endogenous variables. Bardesi (2016) mentioned that the Internet in the Saudi Arabian environment used to be delivered through several forms. The Internet in Saudi Arabia is delivered through Saudi Telecom or STC, Mobily, and Zain.…”