Only a Few Roads lead to Rome: The Regulation of Entry and - PowerPoint PPT Presentation

Only a Few Roads lead to Rome: The Regulation of Entry and Broadband Performance José Maria Castellano Universitat Pompeu Fabra Acorn-Redecom Conference Mexico City, 4-5th September 2009 07/06/2010 1

Overview Basic Concepts • Empirical Evidence • The Theoretical Framework • The Causal Model • The Methodology • The Data Analysis • Conclusions • 07/06/2010 2

Basic Concepts  Broadband = Internet > = 256 kbit/s  Broadband Penetration = % inhabitants with broadband subscription

Basic Concepts  Broadband Performance = (% inhabitants in ti -% inhabitants in t0) /ti-t0  Market Entry Regulation = Legal Requirements

Empirical Evidence  Entry regulation do not explain differences in broadband performance.

Empirical Evidence Reg. /Perf. High Medium Low High Denmark France Ireland Medium Estonia Lithuania Greece Low Finland Germany Italy

 Under what conditions does entry regulation promote different broadband performances?

The Theoretical Framework  Economic Factors  GDP is 0.65 correlated with broadband penetration  Political and Institutional Factors  Market Entry regulation is key for invesment and innovation

The Theoretical Framework  Technological Factors  Path Dependence and Network Effects  Social and Demographic Factors  Urban areas (more density, education and higher income)

The Causal Model  Dependent Variable  Broadband Performance  Independent Variable  Entry Regulation  Other variables  Education (secondary school dropout rate)  Income (GDP per capita)  Density (% inhabitant per m2)  Young Population (% population bn 18-24 y.o.)

The Methodology Reg./Eco- High Medium-Low demo-soc High H1 H4 Medium H2 H5 Low H3 H6

The Methodology  Method  QCA  Intensity/Large number of cases  Data  Broadband (OECD/ITU)  Regulation (PLAUT ECONOMICS)  Social, Economic and demographic (EUROSTAT)  Case selection  27 EU  From 1996 to 2008

The Data Analysis High Broadband Performance  Config. MedEnt  Young High MedSec  Reg Income School Popul 1 P P P 2 P P 3 P P A

The Data Analysis Medium Broadband Performance Conf. MEntReg Youn MedInc MedSec MedDen ome School sity Popul   1 P P P  2 P P 3 P P 4 P P 5 A P A 6 P A P

The Data Analysis Low Broadband Performance  Conf. MEntReg Youn MedInc MedSec MedDen   ome School sity Popul 1 P 2 P P 3 A P

Conclusions  The most common factors: Country MEntR Youn High MedIn Low MedS MedD eg come Incom ecSch ensity Popul Incom e ool e High * * Medium * * Low * *

Conclusions  Medium entry regulation interacts with: Country Youn High MedInc Low MedSec MedDe ome Income School nsity Popul Income High P A Medium P P P Low

 Entry regulation is less important  Young + high income = high bb performance  Medium income + Medium secondary school dropout = medium bb performance  Low income + medium density = low bb performance

 Medium entry regulation = high and medium broadband performance countries.  High broadband performance:  Medium entry regulation + young population – medium secondary school dropout

 Medium broadband performance countries:  Medium Entry Regulation + Medium Income + Medium Secondary School dropout + Medium density  Low broadband performance countries:  No interaction

Regulation helps but it does not cure!

Thank you for your attention!