only a few roads lead to rome: the regulation of entry and
TRANSCRIPT
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
07/06/2010 2
Overview
• Basic Concepts
• Empirical Evidence
• The Theoretical Framework
• The Causal Model
• The Methodology
• The Data Analysis
• Conclusions
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-demo-soc
High Medium-Low
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. MedEntReg
Young
Popul
High Income
MedSecSchool
1 P P P
2 P P
3 P P A
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
The Data Analysis
Low Broadband Performance
Conf. MEntReg Youn
Popul
MedIncome
MedSecSchool
MedDensity
1 P
2 P P
3 A P
Conclusions
The most common factors:
Country MEntReg
Youn
Popul
High
Income
MedIncome
Low Incom
e
MedSecSch
ool
MedDensity
High
* *
Medium
* *
Low
* *
Conclusions
Medium entry regulation interacts with:
Country Youn
Popul
High
Income
MedIncome
Low Income
MedSecSchool
MedDensity
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!