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Published on: September 26, 2016
Differentiating mobile broadband policies across diffusion stages: A panel data analysis.
Mekuria Haile Teklemariam1, Youngsun Kwon1
1School of Business and Technology Management, College of Business, KAIST, South Korea.
Mobile broadband diffusion policies must adapt to a country's market stage. Strategies vary significantly, with "Take-off" countries having fewer effective policy options for mobile broadband adoption.
Area of Science:
- Economics
- Information and Communication Technology Policy
Background:
- Mobile broadband adoption is crucial for economic development.
- Policy interventions are key to accelerating mobile broadband diffusion.
- Understanding market stage dynamics is essential for effective policy design.
Purpose of the Study:
- To investigate the effectiveness of policy mixes for mobile broadband diffusion across different market stages.
- To identify how demand constraints and policy effectiveness change as mobile broadband markets mature.
- To provide differentiated policy recommendations based on a country's diffusion stage.
Main Methods:
- Clustering 115 countries into three diffusion stages (Take-off, Fast-Diffusion, Saturated) based on 2013-2016 data.
- Utilizing pooled and fixed effect panel data models to analyze 23 explanatory variables.
- Employing interaction terms to identify differential policy effects across country groups.
Main Results:
- Policy effectiveness varies significantly across the three mobile broadband diffusion stages.
- The number of effective policy choices increases with market maturity: six for Take-off, ten for Fast-Diffusion, and thirteen for Saturated.
- Countries in the Take-off stage have the most limited policy options for promoting mobile broadband.
Conclusions:
- A one-size-fits-all policy approach is ineffective for mobile broadband diffusion.
- Policy strategies must be tailored to the specific diffusion stage of a country's mobile broadband market.
- Further research can explore specific policy instruments within each stage's choice set.
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