Catching Up in Broadband Regressions: Does Local Loop Unbundling Really Lead to Material Increases in OECD Broadband Uptake?

14 Pages Posted: 30 Jul 2008

See all articles by Glenn Boyle

Glenn Boyle

University of Canterbury - Economics and Finance; Sapere Research Group

Bronwyn E. Howell

Victoria University of Wellington - School of Management

Wei Zhang

affiliation not provided to SSRN

Date Written: July 28, 2008

Abstract

Local loop unbundling has been widely promulgated by policy-makers as a significant factor stimulating broadband uptake and therefore an essential component of a developing 'information economy'. Whilst empirical evidence on this issue is sparse, one recent study commissioned and published by the OECD (OECD, 2007) does find a statistically significant effect of unbundling on broadband uptake. On closer examination however, the economic magnitude of this effect is trivial. Moreover, once the error structure of the data is properly accounted for, the statistical significance disappears. As a result, the OECD report cannot be used to justify the view that local loop unbundling leads to greater broadband uptake.

Keywords: broadband, local loop unbundling, OECD

JEL Classification: L96, L86, L43, L14, K23

Suggested Citation

Boyle, Glenn and Howell, Bronwyn E. and Zhang, Wei, Catching Up in Broadband Regressions: Does Local Loop Unbundling Really Lead to Material Increases in OECD Broadband Uptake? (July 28, 2008). Available at SSRN: https://ssrn.com/abstract=1184339 or http://dx.doi.org/10.2139/ssrn.1184339

Glenn Boyle

University of Canterbury - Economics and Finance ( email )

Private Bag 4800
Christchurch
New Zealand

Sapere Research Group ( email )

Level 9, Pencarrow House
1 Willeston St
Wellington, 6140
New Zealand

Bronwyn E. Howell (Contact Author)

Victoria University of Wellington - School of Management ( email )

Wellington 6001
New Zealand
+64 4 463 5563 (Phone)
+64 4 463 5566 (Fax)

Wei Zhang

affiliation not provided to SSRN

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