Drivers and Inhibitors of Countries’ Broadband Performance – A European Snapshot

  • Nejc M. Jakopin
Part of the Contributions to Economics book series (CE)


There is large variance regarding diffusion of broadband Internet among European countries. Some nations are criticised for a presumably underdeveloped broadband market. This study analyses broadband Internet access take-up using a wide range of variables to explain European countries’ broadband position and to anticipate future market developments. Correlation results for the EU-25 countries are presented using a time lag design of introducing the influencing variables for the year 2003 and the outcome criteria for 2005/2006. Findings show that (1) economic prosperity and (2) computer literacy initiate broadband penetration differences. Further, strong effects are identified for (3) English language proficiency, which affects the attractiveness of global Web content for Internet subscribers, (4) teleworking, which increases the base of potential early broadband adopters, (5) service sector employment that positively correlates with the need for information access, and (6) unemployment, which reduces the spending power of consumers. Privatisation, independent regulator, and LLU lead times have a significant positive impact on broadband development, while intra-technology and general market concentration are negatively associated with broadband uptake. Inter-technology (e.g., Cable vs. DSL) competition is not significant for broadband take-up in the EU-25 sample.


Lead Time Market Concentration Digital Literacy Broadband Access Broadband Service 


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© Physica-Verlag Heidelberg 2009

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  • Nejc M. Jakopin

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