Household demand for broadband internet service

Abstract

How much are consumers willing to pay for broadband service?

Mobile-only consumers arise from heterogeneous valuation of fixed services

“…In Rosston, Savage and Waldman (2010), the authors design a discrete choice experience to show that consumers willingness to pay of Internet service improvements like increase Internet connection speed. In particular, their results reveal that US citizens are willing to pay 3 $ more in order to enjoy very fast Internet rather then fast Internet.…”

Broadband Policies for Latin America and the Caribbean

“…The evidence points to three main factors: the existence of non-linear benefits requiring that certain adoption thresholds be reached in order to maximize the impact of broadband (Koutroumpis, 2009); externalities in broadband consumption and production that cannot be captured by the operators directly involved, which leads to investment volumes that are below socially efficient levels (Rosston et al, 2010); and problems in identifying and aggregating demand in marginal areas that delay the deployment of high-capacity networks and undermine social inclusion goals (Berkman Center, 2010).…”

“…Moreover, the design of effective policies to expand broadband services depends on a correct estimation of affordability for target households. Interestingly, this issue has hardly been addressed in the research literature, and the few available studies have yielded inconsistent results (Clarke et al 2009;Rosston, Savage and Waldman, 2010;Hauge and Prieger, 2010).…”

Economic replicability tests for next-generation access networks

“…This undoubtedly has an impact on consumer willingness to pay for NGA services. Rosston, Savage, and Waldman (2010) point out that the difference in American consumer willingness to pay for fast or very fast broadband is low (about $3.00). However, a short-term pricing policy aimed at achieving immediate economic equilibrium would be counterproductive because it would lead to prohibitive prices.…”