IDEAS home Printed from https://ideas.repec.org/a/eee/telpol/v48y2024i6s0308596124000582.html
   My bibliography  Save this article

Broadband adoption in Algeria and the structural determinants of its pace

Author

Listed:
  • Bacha, Radia
  • Gasmi, Farid
  • Metevier, Samantha

Abstract

Using a 2003–2019 dataset on broadband adoption in Algeria, we explore its pattern and the market structure, institutional, and socio-economic factors that influenced its pace, which was considerably delayed due to political and social instability during the decade of the 1990s. We propose an integrative model selection approach that simultaneously searches for the best diffusion model among the Bass, Gompertz, and Logistic diffusion models, as well as relevant explanatory variables. The Logistic model chosen strongly aligns with Algeria's historical context compared to the Gompertz model selected by the standard sequential approach. Market concentration exhibits a U-shaped impact on adoption rates, while institutional quality, mobile technology, and higher education enrollment consistently have a positive impact. Introducing differentiated broadband access to stimulate competition and lower prices can promote adoption among sub-populations in Algeria who currently find it financially inaccessible. Additionally, broadband uptake can be further accelerated by enforcing transparent governance, supporting regulatory policies, and boosting digital literacy.

Suggested Citation

  • Bacha, Radia & Gasmi, Farid & Metevier, Samantha, 2024. "Broadband adoption in Algeria and the structural determinants of its pace," Telecommunications Policy, Elsevier, vol. 48(6).
  • Handle: RePEc:eee:telpol:v:48:y:2024:i:6:s0308596124000582
    DOI: 10.1016/j.telpol.2024.102761
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0308596124000582
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.telpol.2024.102761?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Asongu, Simplice A. & Biekpe, Nicholas & Cassimon, Danny, 2021. "On the diffusion of mobile phone innovations for financial inclusion," Technology in Society, Elsevier, vol. 65(C).
    2. Vanessa S. Tchamyou & Simplice A. Asongu & Nicholas M. Odhiambo, 2019. "The Role of ICT in Modulating the Effect of Education and Lifelong Learning on Income Inequality and Economic Growth in Africa," African Development Review, African Development Bank, vol. 31(3), pages 261-274, September.
    3. Phuc Nguyen, Canh & Dinh Su, Thanh & Doytch, Nadia, 2020. "The drivers of financial development: Global evidence from internet and mobile usage," Information Economics and Policy, Elsevier, vol. 53(C).
    4. Lee, Sangwon & Marcu, Mircea & Lee, Seonmi, 2011. "An empirical analysis of fixed and mobile broadband diffusion," Information Economics and Policy, Elsevier, vol. 23(3), pages 227-233.
    5. Briglauer, Wolfgang & Cambini, Carlo & Grajek, Michał, 2018. "Speeding up the internet: Regulation and investment in the European fiber optic infrastructure," International Journal of Industrial Organization, Elsevier, vol. 61(C), pages 613-652.
    6. Turk, Tomaž & Trkman, Peter, 2012. "Bass model estimates for broadband diffusion in European countries," Technological Forecasting and Social Change, Elsevier, vol. 79(1), pages 85-96.
    7. Antonio Estache & Marco Manacorda & Tommaso M. Valletti, 2002. "Telecommunications Reform, Access Regulation, and Internet Adoption in Latin America," Economía Journal, The Latin American and Caribbean Economic Association - LACEA, vol. 0(Spring 20), pages 153-218, January.
    8. Gruber, Harald & Verboven, Frank, 2001. "The diffusion of mobile telecommunications services in the European Union," European Economic Review, Elsevier, vol. 45(3), pages 577-588, March.
    9. Harald Gruber & Pantelis Koutroumpis, 2013. "Competition enhancing regulation and diffusion of innovation: the case of broadband networks," Journal of Regulatory Economics, Springer, vol. 43(2), pages 168-195, April.
    10. Francesco Caselli & Wilbur John Coleman, 2001. "Cross-Country Technology Diffusion: The Case of Computers," American Economic Review, American Economic Association, vol. 91(2), pages 328-335, May.
    11. Kiiski, Sampsa & Pohjola, Matti, 2002. "Cross-country diffusion of the Internet," Information Economics and Policy, Elsevier, vol. 14(2), pages 297-310, June.
    12. Bohlin, Anders & Gruber, Harald & Koutroumpis, Pantelis, 2010. "Diffusion of new technology generations in mobile communications," Information Economics and Policy, Elsevier, vol. 22(1), pages 51-60, March.
    13. R. Bacha & Farid Gasmi, 2018. "Tarification de l’accès aux éléments de réseau d’Algérie Télécom : Une analyse des données 2008-2016 sur les liens loués," Post-Print hal-03263945, HAL.
    14. Hwang, Junseok & Cho, Youngsang & Long, Nguyen Viet, 2009. "Investigation of factors affecting the diffusion of mobile telephone services: An empirical analysis for Vietnam," Telecommunications Policy, Elsevier, vol. 33(9), pages 534-543, October.
    15. V. Srinivasan & Charlotte H. Mason, 1986. "Technical Note—Nonlinear Least Squares Estimation of New Product Diffusion Models," Marketing Science, INFORMS, vol. 5(2), pages 169-178.
    16. Bouckaert, Jan & van Dijk, Theon & Verboven, Frank, 2010. "Access regulation, competition, and broadband penetration: An international study," Telecommunications Policy, Elsevier, vol. 34(11), pages 661-671, December.
    17. Asongu, Simplice & Amari, Mouna & Jarboui, Anis & Mouakhar, Khaireddine, 2021. "ICT dynamics for gender inclusive intermediary education: Minimum poverty and inequality thresholds in developing countries," Telecommunications Policy, Elsevier, vol. 45(5).
    18. Sultanov, Azamat & Lee, Deok-Joo & Kim, Kyung-Taek & Avila, Luz Angelica Pirir, 2016. "The diffusion of mobile telephony in Kazakhstan: An empirical analysis," Technological Forecasting and Social Change, Elsevier, vol. 106(C), pages 45-52.
    19. Shaun McRae, 2015. "Infrastructure Quality and the Subsidy Trap," American Economic Review, American Economic Association, vol. 105(1), pages 35-66, January.
    20. Lee, Chi-Chuan & Li, Xinrui & Yu, Chin-Hsien & Zhao, Jinsong, 2021. "Does fintech innovation improve bank efficiency? Evidence from China’s banking industry," International Review of Economics & Finance, Elsevier, vol. 74(C), pages 468-483.
    21. Lee, Kangoh & Leonard, Russell, 2023. "High-speed internet access and diffusion of new technologies in nonmetro areas," Telecommunications Policy, Elsevier, vol. 47(9).
    22. Philippe Aghion & Nick Bloom & Richard Blundell & Rachel Griffith & Peter Howitt, 2005. "Competition and Innovation: an Inverted-U Relationship," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 120(2), pages 701-728.
    23. Chien, Mei-Se & Cheng, Chih-Yang & Kurniawati, Meta Ayu, 2020. "The non-linear relationship between ICT diffusion and financial development," Telecommunications Policy, Elsevier, vol. 44(9).
    24. Jain, Dipak C & Rao, Ram C, 1990. "Effect of Price on the Demand for Durables: Modeling, Estimation, and Findings," Journal of Business & Economic Statistics, American Statistical Association, vol. 8(2), pages 163-170, April.
    25. Yamakawa, Peter & Rees, Gareth H. & Manuel Salas, José & Alva, Nikolai, 2013. "The diffusion of mobile telephones: An empirical analysis for Peru," Telecommunications Policy, Elsevier, vol. 37(6), pages 594-606.
    26. Niebel, Thomas, 2018. "ICT and economic growth – Comparing developing, emerging and developed countries," World Development, Elsevier, vol. 104(C), pages 197-211.
    27. Yu Sang Chang & Seongmin Jeon & Kudzai Shamba, 2020. "Speed of Catch-up and Digital Divide: Convergence Analysis of Mobile Cellular, Internet, and Fixed Broadband for 44 African Countries," Journal of Global Information Technology Management, Taylor & Francis Journals, vol. 23(3), pages 217-234, July.
    28. Quaglione, Davide & Matteucci, Nicola & Furia, Donatella & Marra, Alessandro & Pozzi, Cesare, 2020. "Are mobile and fixed broadband substitutes or complements? New empirical evidence from Italy and implications for the digital divide policies," Socio-Economic Planning Sciences, Elsevier, vol. 71(C).
    29. Frank M. Bass & Trichy V. Krishnan & Dipak C. Jain, 1994. "Why the Bass Model Fits without Decision Variables," Marketing Science, INFORMS, vol. 13(3), pages 203-223.
    30. Jha, Ashutosh & Saha, Debashis, 2020. "“Forecasting and analysing the characteristics of 3G and 4G mobile broadband diffusion in India: A comparative evaluation of Bass, Norton-Bass, Gompertz, and logistic growth models”," Technological Forecasting and Social Change, Elsevier, vol. 152(C).
    31. Gruber, Harald, 2001. "Competition and innovation: The diffusion of mobile telecommunications in Central and Eastern Europe," Information Economics and Policy, Elsevier, vol. 13(1), pages 19-34, March.
    32. Nair, Mahendhiran & Pradhan, Rudra P. & Arvin, Mak B., 2020. "Endogenous dynamics between R&D, ICT and economic growth: Empirical evidence from the OECD countries," Technology in Society, Elsevier, vol. 62(C).
    33. Hasbi, Maude & Dubus, Antoine, 2020. "Determinants of mobile broadband use in developing economies: Evidence from Sub-Saharan Africa," Telecommunications Policy, Elsevier, vol. 44(5).
    34. Frank M. Bass, 1969. "A New Product Growth for Model Consumer Durables," Management Science, INFORMS, vol. 15(5), pages 215-227, January.
    35. Gulati, Girish J. & Yates, David J., 2012. "Different paths to universal access: The impact of policy and regulation on broadband diffusion in the developed and developing worlds," Telecommunications Policy, Elsevier, vol. 36(9), pages 749-761.
    36. Natalija Gelvanovska & Michel Rogy & Carlo Maria Rossotto, 2014. "Broadband Networks in the Middle East and North Africa : Accelerating High-Speed Internet Access," World Bank Publications - Books, The World Bank Group, number 16680.
    37. Uyar, Ali & Nimer, Khalil & Kuzey, Cemil & Shahbaz, Muhammad & Schneider, Friedrich, 2021. "Can e-government initiatives alleviate tax evasion? The moderation effect of ICT," Technological Forecasting and Social Change, Elsevier, vol. 166(C).
    38. Goolsbee, Austan & Klenow, Peter J, 2002. "Evidence on Learning and Network Externalities in the Diffusion of Home Computers," Journal of Law and Economics, University of Chicago Press, vol. 45(2), pages 317-343, October.
    39. Voss, Rachel C. & Jansen, Tony & Mané, Bacary & Shennan, Carol, 2021. "Encouraging technology adoption using ICTs and farm trials in Senegal: Lessons for gender equity and scaled impact," World Development, Elsevier, vol. 146(C).
    40. Khan, Anupriya & Krishnan, Satish & Dhir, Amandeep, 2021. "Electronic government and corruption: Systematic literature review, framework, and agenda for future research," Technological Forecasting and Social Change, Elsevier, vol. 167(C).
    41. Anagnostopoulos, Ioannis, 2018. "Fintech and regtech: Impact on regulators and banks," Journal of Economics and Business, Elsevier, vol. 100(C), pages 7-25.
    42. Iyad Dhaoui, 2022. "E-Government for Sustainable Development: Evidence from MENA Countries," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(3), pages 2070-2099, September.
    43. Raj M. Desai & Anders Olofsgård & Tarik M. Yousef, 2009. "The Logic Of Authoritarian Bargains," Economics and Politics, Wiley Blackwell, vol. 21(1), pages 93-125, March.
    44. Teklemariam, Mekuria Haile & Kwon, Youngsun, 2020. "Differentiating mobile broadband policies across diffusion stages: A panel data analysis," Telecommunications Policy, Elsevier, vol. 44(8).
    45. Antonio Estache & T. Valletti & M. Manacorda, 2002. "Telecoms, Reform, Access Regulation and Internet Adoption in Latin America," ULB Institutional Repository 2013/43982, ULB -- Universite Libre de Bruxelles.
    46. Lashitew, Addisu A. & van Tulder, Rob & Liasse, Yann, 2019. "Mobile phones for financial inclusion: What explains the diffusion of mobile money innovations?," Research Policy, Elsevier, vol. 48(5), pages 1201-1215.
    47. Tyce, Matthew, 2020. "Beyond the neoliberal-statist divide on the drivers of innovation: A political settlements reading of Kenya’s M-Pesa success story," World Development, Elsevier, vol. 125(C).
    48. Dixon, Robert J, 1980. "Hybrid Corn Revisited," Econometrica, Econometric Society, vol. 48(6), pages 1451-1461, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bacha, Radia & Gasmi, Farid, 2022. "The broadband diffusion process and its determinants in Algeria: A simultaneous estimation," TSE Working Papers 22-1309, Toulouse School of Economics (TSE).
    2. Jha, Ashutosh & Saha, Debashis, 2020. "“Forecasting and analysing the characteristics of 3G and 4G mobile broadband diffusion in India: A comparative evaluation of Bass, Norton-Bass, Gompertz, and logistic growth models”," Technological Forecasting and Social Change, Elsevier, vol. 152(C).
    3. Meade, Nigel & Islam, Towhidul, 2015. "Forecasting in telecommunications and ICT—A review," International Journal of Forecasting, Elsevier, vol. 31(4), pages 1105-1126.
    4. Ashutosh Jha & Debashis Saha, 2022. "Mobile Broadband for Inclusive Connectivity: What Deters the High-Capacity Deployment of 4G-LTE Innovation in India?," Information Systems Frontiers, Springer, vol. 24(4), pages 1305-1329, August.
    5. Gasmi, Farid & Kouakou, Dorgyles & Noumba Um, Paul & Rojas Milla, Pedro, 2023. "An empirical analysis of the social contract in the MENA region and the role of digitalization in its transformation," TSE Working Papers 23-1423, Toulouse School of Economics (TSE).
    6. Sanjay Kumar SINGH & Vijay Lakshmi SINGH, 2023. "Internet diffusion in India: A study based on Growth Curve modelling," Management Research and Practice, Research Centre in Public Administration and Public Services, Bucharest, Romania, vol. 15(2), pages 29-42, June.
    7. Peters, Kay & Albers, Sönke & Kumar, V., 2008. "Is there more to international Diffusion than Culture? An investigation on the Role of Marketing and Industry Variables," EconStor Preprints 27678, ZBW - Leibniz Information Centre for Economics.
    8. Jinah Yang & Daiki Min & Jeenyoung Kim, 2020. "The Use of Big Data and Its Effects in a Diffusion Forecasting Model for Korean Reverse Mortgage Subscribers," Sustainability, MDPI, vol. 12(3), pages 1-17, January.
    9. Thakur Dhakal & Dae-Eun Lim, 2020. "Understanding ICT adoption in SAARC member countries," Letters in Spatial and Resource Sciences, Springer, vol. 13(1), pages 67-80, April.
    10. Saurabh Panwar & P. K. Kapur & Ompal Singh, 2021. "Predicting diffusion dynamics and launch time strategy for mobile telecommunication services: an empirical analysis," Information Technology and Management, Springer, vol. 22(1), pages 33-51, March.
    11. Meade, Nigel & Islam, Towhidul, 2006. "Modelling and forecasting the diffusion of innovation - A 25-year review," International Journal of Forecasting, Elsevier, vol. 22(3), pages 519-545.
    12. Ashutosh Jha & Manisha Chakrabarty & Debashis Saha, 2023. "Network Investment as Drivers of Mobile Subscription – A Firm-level Analysis," Information Systems Frontiers, Springer, vol. 25(5), pages 1811-1828, October.
    13. Avila, Luz Angelica Pirir & Lee, Deok-Joo & Kim, Taegu, 2018. "Diffusion and competitive relationship of mobile telephone service in Guatemala: An empirical analysis," Telecommunications Policy, Elsevier, vol. 42(2), pages 116-126.
    14. Yuri Peers & Dennis Fok & Philip Hans Franses, 2012. "Modeling Seasonality in New Product Diffusion," Marketing Science, INFORMS, vol. 31(2), pages 351-364, March.
    15. Asongu, Simplice A. & Biekpe, Nicholas & Cassimon, Danny, 2020. "Understanding the greater diffusion of mobile money innovations in Africa," Telecommunications Policy, Elsevier, vol. 44(8).
    16. Simplice A. Asongu & Nicholas M. Odhiambo, 2022. "The of role economic growth in modulating mobile connectivity dynamics for financial inclusion in developing countries," Working Papers of the African Governance and Development Institute. 22/013, African Governance and Development Institute..
    17. Zhang, Xiaoqun, 2013. "Income disparity and digital divide: The Internet Consumption Model and cross-country empirical research," Telecommunications Policy, Elsevier, vol. 37(6), pages 515-529.
    18. Krishnan, Trichy V. & Feng, Shanfei & Jain, Dipak C., 2023. "Peak sales time prediction in new product sales: Can a product manager rely on it?," Journal of Business Research, Elsevier, vol. 165(C).
    19. Asongu, Simplice A. & Agyemang-Mintah, Peter & Nting, Rexon T., 2021. "Law, mobile money drivers and mobile money innovations in developing countries," Technological Forecasting and Social Change, Elsevier, vol. 168(C).
    20. Al-Alawi, Baha M. & Bradley, Thomas H., 2013. "Review of hybrid, plug-in hybrid, and electric vehicle market modeling Studies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 21(C), pages 190-203.

    More about this item

    Keywords

    Broadband adoption; Digital transformation; Innovation diffusion models; Regulation; Competition;
    All these keywords.

    JEL classification:

    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
    • O2 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:telpol:v:48:y:2024:i:6:s0308596124000582. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/30471/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.