Diffusion Forecasting and Price Evolution of Broadband Services in Europe

Abstract

This chapter is concerned with the methodologies for the study of the diffusion patterns and demand estimation, as well the pricing schemas for broadband telecommunication services in Europe. Along with the introduction of diffusion models and price indexes which can represent broadband convergence and diversity, a description of the theoretical models and methodologies are given and application of these models in European telecommunication market is performed. Evidence from Europe outlines telecom market behavior and contributes to better understanding of broadband diffusion worldwide. To this direction, a price index is constructed regarding the ADSL technology.