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Valuing the virtual: The impact of fiber to the home on property prices in France

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  • Guiffard, Jean-Baptiste

Abstract

This paper examines the value that households place on very high-speed internet access, explicitly focusing on the impact of eligibility for Fiber to the Home (FTTH) technology on property prices. Using a Spatial Discontinuity Design based on the border of fiber eligibility zones which have significantly expanded under France’s Très Haut-Débit plan, I find that FTTH eligibility is a significant determinant of property prices, with an average increase of 0.9 percent. I also consider heterogeneities in FTTH valuation, accounting for socioeconomic characteristics, local factors, and the performance of legacy copper networks. These findings highlight the growing importance of fast and reliable broadband access for households and have important implications for policymakers and Internet service providers.

Suggested Citation

  • Guiffard, Jean-Baptiste, 2024. "Valuing the virtual: The impact of fiber to the home on property prices in France," Telecommunications Policy, Elsevier, vol. 48(4).
    • Handle: RePEc:eee:telpol:v:48:y:2024:i:4:s0308596124000296
    DOI: 10.1016/j.telpol.2024.102732
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    More about this item

    Keywords

    Very high-speed broadband; Hedonic pricing model; House market; Spatial discontinuity design;
    All these keywords.

    JEL classification:

    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets
    • R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Government Policy

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