Analysis of the dynamic broadband technology competition: Implications for national information infrastructure development

– The purpose of this paper is to investigate the effect of inter-platform competition on the adoption of different broadband technologies (i.e. among xDSL, fibre-optic technologies, and hybrid fibre coaxial (HFC)), examine the direction of the effect, and identify potential technology convergence and the speed of technology innovation. , – It uses Lotka-Volterra equation to determine the dynamic competition pattern for xDSL, fibre-optic technologies, and HFC. , – The influence of inter-platform competition on the adoption rate may vary depending on the market conditions, the phase of the adoption period, and the types of competing technology. Even though new technology has competitive advantage, it still requires time to acquire market share. Even though fibre-optic is leading in the market, alternative technologies have also garnered significant market share in the early stage. Specifically, HFC has gained its own market position, making it a valuable alternative in the short term. Nonetheless, the market will eventually converge to fibre-optics. , – The findings show that inter-platform competition does not always exert positive influence on broadband adoption as indicated in previous literature. Instead, the influence may vary from negative to neural. This information is an important knowledge addition to the literature. Overall, the study has important implications to governmental effort in managing market competitions and in planning national broadband infrastructure policies. It also provides valuable implications on how ISPs should strategize their investment in new broadband technologies.

[1]  N. Krasovskii Stability of Motion: Applications of Lyapunov's Second Method to Differential Systems and Equations with Delay , 1963 .

[2]  Heejin Lee,et al.  The Growth of Broadband and Electronic Commerce in South Korea: Contributing Factors , 2003, Inf. Soc..

[3]  Sangwon Lee,et al.  Examining Broadband Adoption Factors: An Empirical Analysis between Countries , 2007 .

[4]  Morten Falch,et al.  Penetration of broadband services - The role of policies , 2007, Telematics Informatics.

[5]  David J. Atkin,et al.  An examination of factors contributing to South Korea's global leadership in broadband adoption , 2005, Telematics Informatics.

[6]  Jonghwa Kim,et al.  A dynamic competition analysis on the Korean mobile phone market using competitive diffusion model , 2006, Comput. Ind. Eng..

[7]  Pyungho Kim,et al.  Is Korea a Strong Internet Nation? , 2006, Inf. Soc..

[8]  Debra J. Aron,et al.  Broadband Adoption in the United States: An Empirical Analysis , 2003 .

[9]  Christos Bouras,et al.  Broadband municipal optical networks in Greece: A suitable business model , 2009, Telematics Informatics.

[10]  P. H. Leslie A STOCHASTIC MODEL FOR STUDYING THE PROPERTIES OF CERTAIN BIOLOGICAL SYSTEMS BY NUMERICAL METHODS , 1958 .

[11]  Chihiro Watanabe,et al.  Policy options for the diffusion orbit of competitive innovations—an application of Lotka–Volterra equations to Japan’s transition from analog to digital TV broadcasting , 2003 .

[12]  Sang-Gun Lee,et al.  A Model for Analyzing Churn Effect in Saturated Markets , 2011, Ind. Manag. Data Syst..

[13]  S. C. Bhargava Generalized Lotka-Volterra equations and the mechanism of technological substitution , 1989 .

[14]  Fabio M. Manenti,et al.  Platform competition and broadband uptake: Theory and empirical evidence from the European union , 2006, Inf. Econ. Policy.

[15]  Siddhartha Menon The evolution of the policy objectives of South Korea's Broadband Convergence Network from 2004 to 2007 , 2011, Gov. Inf. Q..

[16]  Myeong-Cheol Park,et al.  A three-tier ICT access model for intention to participate online , 2016 .

[17]  Martha Garcia-Murillo,et al.  International Broadband Deployment: The Impact of Unbundling , 2007 .

[18]  Wolfgang Briglauer,et al.  The deployment and penetration of high-speed fiber networks and services: Why are EU member states lagging behind? , 2013 .

[19]  V. Kreng,et al.  A technology replacement model with variable market potential — An empirical study of CRT and LCD TV , 2009 .

[20]  I. Røpke The unsustainable directionality of innovation – The example of the broadband transition , 2012 .

[21]  Sylvia M. Chan-Olmsted,et al.  Competitive advantage of broadband Internet: a comparative study between South Korea and the United States , 2004 .

[22]  Inmaculada Cava-Ferreruela,et al.  Broadband policy assessment: A cross-national empirical analysis , 2006 .

[23]  Anja Møller Rasmussen Information and Development: the information effect , 2001 .

[24]  Xavier Fageda,et al.  Determinants of broadband access: Is platform competition always the key variable to success? , 2014, Inf. Econ. Policy.

[25]  Felix Höffler,et al.  Cost and Benefits from Infrastructure Competition. Estimating Welfare Effects from Broadband Access Competition , 2005 .

[26]  Indrit Troshani,et al.  High-speed broadband: assessing its social impact , 2013, Ind. Manag. Data Syst..

[27]  Rob Frieden,et al.  Lessons from broadband development in Canada, Japan, Korea and the United States , 2005 .

[28]  J. Utterback,et al.  The Death Knells of Mature Technologies , 2017 .

[29]  Mario Denni,et al.  The Diffusion of Broadband Telecommunications: The Role of Competition , 2005 .

[30]  Theodore Modis,et al.  Technological Forecasting at the Stock Market , 1999 .

[31]  David B. Pratt,et al.  Analysis of the Lotka–Volterra competition equations as a technological substitution model , 2003 .

[32]  Ta-Chung Wang,et al.  Tripartite dynamic competition and equilibrium analysis on global television market , 2012, Comput. Ind. Eng..

[33]  H. Gruber,et al.  The Diffusion of Broadband Telecommunications in the U.S. - The Role of Different Forms of Competition , 2007 .

[34]  Christian Wernick,et al.  The role of government in broadband access , 2007 .

[35]  Sujin Choi Facilities to service based competition, not service to facilities based, for broadband penetration: A comparative study between the United States and South Korea , 2011 .

[36]  Richard T. Watson,et al.  Differences in national information infrastructures: the reflection of national cultures , 1997, J. Strateg. Inf. Syst..

[37]  Stefan Bojnec,et al.  Broadband Availability and Economic Growth , 2012, Ind. Manag. Data Syst..

[38]  Dong-Hee Shin,et al.  A critique of Korean National Information Strategy: Case of national information infrastructures , 2007, Gov. Inf. Q..

[39]  Frank Verboven,et al.  Access regulation, competition, and broadband penetration: An international study , 2010 .

[40]  Myeong-Cheol Park,et al.  A Comparison of the Digital Divide Across Three Countries with Different Development Indices , 2015, J. Glob. Inf. Manag..

[41]  Victor B. Kreng,et al.  The interaction of the market competition between LCD TV and PDP TV , 2009, Comput. Ind. Eng..