Household Demand for Broadband Internet in 2010

Abstract

This paper uses data from a nationwide survey administered during late 2009 and early 2010 to estimate a random utility model of household preferences for broadband Internet service. Reliability and speed are important service characteristics: the representative household is willing to pay $20 per month for more reliable service; $45 for an improvement in speed from slow to fast; and $48 for an improvement in speed from slow to very fast. A representative household would be willing to pay $79 per month for a fast, reliable Internet service. Internet valuations increase with experience, and there has been an estimated two- to three-fold increase in consumer surplus per household between 2003 and 2010. If experience causes increased valuation, targeted programs that educate households about the benefits from broadband, expose households to the broadband experience and/or directly support the initial take-up of broadband have potential to increase overall penetration in the United States.

Factors Affecting Demand for Internet Access in Saudi Arabia

“…Cadman and Dineen (2008) indicated that the pace of broadband penetration in the OECD is highly affected by income, with an increment of 1% in income resulting in an increment of 0.78% in demand. This is in line with the study by Rosston and Savage (2010). While, Horrigan (2009) argued that broadband Internet service was adopted by 63 percent of households as of 2009, which differed by variables such as income, age, and education.…”

A survey on software piracy empirical literature: Stylized facts and theory

“…Using a large sample of individuals, Rosston et al (2010) studied this phenomenon comparing experienced users with inexperienced users and estimated their willingness to pay, which is represented by the marginal utility of changing from one Internet service to another with higher interconnection speed. They included several measures in their analysis: cost, connection speed, reliability, use of Internet away from home, watching high definition content, interaction with health specialists and being able to perform free videophone calls.…”

Usage-Based Pricing and Demand for Residential Broadband

“…Several additional papers (Dutz et al 2009;Rosston et al 2010;Greenstein and McDevitt 2011) estimate the economic value of broadband internet, but without disaggregated decisions or usage-based pricing. Hitt and Tambe (2007) show that broadband adoption increases internet usage by 1,300 minutes per month, suggesting a strong preference for content that requires high bandwidth.…”