only a few roads lead to rome: the regulation of entry and
TRANSCRIPT
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07/06/2010 1
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
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07/06/2010 2
Overview
• Basic Concepts
• Empirical Evidence
• The Theoretical Framework
• The Causal Model
• The Methodology
• The Data Analysis
• Conclusions
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Basic Concepts
Broadband = Internet > = 256 kbit/s
Broadband Penetration = % inhabitants
with broadband subscription
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Basic Concepts
Broadband Performance = (% inhabitants
in ti -% inhabitants in t0) /ti-t0
Market Entry Regulation = Legal
Requirements
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Empirical Evidence
Entry regulation do not explain differences in broadband performance.
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Empirical Evidence
Reg. /Perf. High Medium Low
High Denmark France Ireland
Medium Estonia Lithuania Greece
Low Finland Germany Italy
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Under what conditions does entry regulation promote different broadband performances?
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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
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The Theoretical Framework
Technological Factors
Path Dependence and Network Effects
Social and Demographic Factors
Urban areas (more density, education and higher income)
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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.)
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The Methodology
Reg./Eco-demo-soc
High Medium-Low
High H1 H4
Medium H2 H5
Low H3 H6
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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
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The Data Analysis
High Broadband Performance
Config. MedEntReg
Young
Popul
High Income
MedSecSchool
1 P P P
2 P P
3 P P A
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The Data Analysis
Medium Broadband Performance
Conf. MEntReg Youn
Popul
MedIncome
MedSecSchool
MedDensity
1 P P P
2 P P
3 P P
4 P P
5 A P A
6 P A P
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The Data Analysis
Low Broadband Performance
Conf. MEntReg Youn
Popul
MedIncome
MedSecSchool
MedDensity
1 P
2 P P
3 A P
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Conclusions
The most common factors:
Country MEntReg
Youn
Popul
High
Income
MedIncome
Low Incom
e
MedSecSch
ool
MedDensity
High
* *
Medium
* *
Low
* *
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Conclusions
Medium entry regulation interacts with:
Country Youn
Popul
High
Income
MedIncome
Low Income
MedSecSchool
MedDensity
High P A
Medium P P P
Low
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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
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Medium entry regulation = high and medium broadband performance countries.
High broadband performance:
Medium entry regulation + young population – medium secondary school dropout
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Medium broadband performance countries: Medium Entry Regulation + Medium
Income + Medium Secondary School dropout + Medium density
Low broadband performance countries: No interaction
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Regulation helps but it does not
cure!
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Thank you for your attention!