Driving Demand for Broadband Networks and Services

This book examines the reasons why various groups around the world choose not to adopt broadband services and evaluates strategies to stimulate the demand that will lead to increased broadband use. It introduces readers to the benefits of higher adoption rates while examining the progress that developed and emerging countries have made in stimulating broadband demand. By relying on concepts such as a supply and demand gap, broadband price elasticity, and demand promotion, this book explains differences between the fixed and mobile broadband demand gap, introducing the notions of substitution and complementarity between both platforms. Building on these concepts, ‘Driving Demand for Broadband Networks and Services’ offers a set of best practices and recommendations aimed at promoting broadband demand.

The broadband demand gap is defined as individuals and households that could buy a broadband subscription because they live in areas served by telecommunications carriers but do not do so because of either economic, limited awareness, or lack of digital literacy reasons. This grouping represents a range from 30% of the population in the US, 40% in Germany, and over 80% in most emerging countries. Research indicates that broadband usage is critical for social development, economic performance, and overall welfare and so it behoves governments to encourage demand.

This study is the first of its kind to address the demand side of broadband diffusion, incorporating an economic analysis while offering real world examples of policies and initiatives that have successfully spurred demand in developed and emerging markets alike. This book is intended for policy makers, managers of telecommunications and other technology companies, as well as academics and graduate students in the areas of public policy, economic development, and technology management.

This book is an eye-opener for policy makers. Traditionally ICT policy has focused on the supply side. Katz and Berry develop great ideas to leapfrog Internet penetration from the demand side, where the value of the Internet is. - Diego Molano Vega, Minister of Information Technologies and Communications of Colombia

This book is an instant classic. It brilliantly and convincingly lays out the case why dealing with inadequate internet penetration has moved from the creation of supply to one of encouraging demand. It provides an information-rich and well-written presentation of the factors holding back people from becoming users, and offers a hugely valuable survey of the various programs around the world to make the broadband internet truly useful to people everywhere. It is the kind of book writers in this field will use constantly. - Eli Noam, Professor of Finance and Economics, Columbia Business School

This new study by Katz and Berry examines the rationale for national broadband plans and the evidence for their success in driving demand. It presents the latest data on broadband in a range of case study countries, and provides best practice advice for policy-makers and development practitioners. - Dr Tim Kelly, Lead ICT Policy Specialist, World Bank

Raul Katz

Dr. Raul Katz is President of Telecom Advisory Services LLC, a consulting firm active in the fields of strategy, economic analysis and regulation. He was previously a Lead Partner at Booz Allen Hamilton, where he was a member of the firm’s Leadership Team and Head of the US and Latin America telecommunication practices. As an international telecom industry consulting executive, Dr. Katz has provided direction to top management of major telecommunications, software and information services companies in the areas of business strategy, consumer/industrial marketing and general management approaches. In addition, Dr. Katz has worked with governments and international organizations in the development of regulatory frameworks and policies, National Broadband Plans, Digital Agendas and National Technology Strategies. In particular, he has supported the governments of Colombia, Costa Rica, Ecuador, Brazil and Mexico.

Dr. Katz is also a Director of Business Strategy Research at Columbia University’s Center for Tele-Information, an Adjunct Professor in Columbia Business School Division of Finance and Economics, and a Visiting Professor at the Universidad de San Andres in Argentina. He has published articles in journals such as Telecommunications Policy, Technovation, Info, Strategy and Business, Communications and Strategies, Interconomics, and America’s Network. His first book, The Information Society: an International Perspective, focusing on the deregulation trends in the worldwide telecommunications industry was published in 1988. His second book Creative Destruction: Business Survival Strategies in the Global Internet Economy, addressing discontinuities in the telecommunications industry, was published in 2000, and translated into Japanese. His third book The Role of ICT in Development was published in 2010.

Taylor Berry

Taylor Berry has served as a consultant with Telecom Advisory Services since 2011. With a background in communication technology, Ms. Berry’s professional experience has centered on Internet industry and global telecommunications trends, with particular attention devoted to the impact of increased access to these services. Ms. Berry received her Masters in Arts from Georgetown University, where she completed a dual-degree program in Communication Technology and International Business Diplomacy. Prior to attending Georgetown, Ms. Berry studied at the Graduate Institute of International and Development Studies in Geneva, Switzerland.