Broadband developments in Europe: A retrospective review of the determinants of supply and demand

Abstract

This contribution provides insights into the dynamics of broadband markets in Europe. While there are many studies capturing the dynamics from an econometric perspective, qualitative studies are much smaller in number and typically provide a top-down perspective. This contribution takes a broad view as it looks from the ‘bottom-up’ at broadband developments. In terms of the market dynamics, it first of all focuses on the ability to pay and willingness to invest and the interplay between the supply side actors. This concerns not only the telecom incumbents, but in particular the non-telco actors, such as municipalities, housing corporations, citizens cooperatives, etc. Secondly, it concerns the development of the technologies deployed. Thirdly, the roles of policy and regulation are considered. The most important outcomes reviewed are broadband coverage and uptake, next to the data rates provided and consumed. Overall, the contribution provides insights into the industrial organisation of the sector. The determinants of wired broadband market dynamics are discussed in their perceived order of importance.