DMCA
Regulated Retail Tariff Structures, Dial-Up Substitution and Broadband Diffusion: Learning from New Zealand’s Experience (2008)
BibTeX
@MISC{Howell08regulatedretail,
author = {Bronwyn Howell},
title = {Regulated Retail Tariff Structures, Dial-Up Substitution and Broadband Diffusion: Learning from New Zealand’s Experience},
year = {2008}
}
Share
 |
 |
 |
 |
||
OpenURL
Abstract
do not necessarily represent those of the institutions with which she is affiliated or their constituent members. Any errors or omissions remain the responsibility of the author. Despite an apparent absence of supply side impediments to the uptake of broadband, New Zealand has persistently exhibited one of the lowest numbers of connections per capita in the OECD. Whilst geographic, demographic and economic factors may partially explain the disparity, they fail to explain the comparatively low uptake in a country that, in the early 2000s, ranked amongst the top OECD countries in the number of internet users per capita and average usage per account. Demand side factors, however, offer some insights. Using a combination of diffusion theory, two-part tariffs, price discrimination and bundling, this paper proposes that the historic flat-rate tariff for local voice telephony has resulted in substitution from legacy dial-up to frontier broadband internet access in New Zealand occurring at a higher user valuation of both internet connection and usage than if the telephony tariff was set at a level whereby the fixed component recovered fixed costs and the variable usage
Keyphrases
new zealand broadband diffusion dial-up substitution retail tariff structure diffusion theory internet connection low uptake local voice telephony legacy dial-up internet user two-part tariff telephony tariff demand side factor economic factor apparent absence fixed component historic flat-rate tariff price discrimination fixed cost variable usage supply side impediment top oecd country constituent member user valuation broadband internet access
