What determines broadband uptake in emerging countries? An empirical study

Before recent technological developments in telecom the use of available fixed line was limited to voice telecommunication only. At present the high frequencies on the subscriber line were used for high speed internet access. This Internet access technology is generally referred to as broadband. A popular example is the ADSL, the Asymmetric Digital Subscriber line for broadband Internet access. Econometric studies performed to evaluate the uptake of broadband have focused on developed economies like USA and OECD countries. However, emerging economies are playing an increasing role in the global economy. These countries are neither developed or least developed countries. They are a heterogeneous group of countries that have certain characteristics in common. Out of 22 emerging economies used in the sample for this study, 15 economies are among the top 75 countries for broadband penetration per 100 inhabitants.1 Recognizing the importance to transform their economies, these countries have adopted policies to transform their economies from traditional to knowledge based economies. Broadband uptake was recognized by economists and policy makers as the main vehicle to achieve knowledge based economy. The purpose of this paper is to determine the factors or indicators that impact broadband penetration in emerging countries, and to provide policy recommendations to increase broadband uptake in these economies.