The Roles and Effects of Mobile Broadband Policies
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GO MOBILE GO EVERYWHERE?! THE ROLES AND EFFECTS OF MOBILE BROADBAND POLICIES By Hsin-yi Tsai A DISSERTATION Submitted to Michigan State University in partial fulfillment of the requirements for the degree of Media and Information Studies - Doctor of Philosophy 2015 ABSTRACT GO MOBILE GO EVERYWHERE?! THE ROLES AND EFFECTS OF MOBILE BROADBAND POLICIES By Hsin-yi Tsai Significant differences in mobile broadband penetration rates exist among countries. This dissertation studies whether public policies influence these differences. It does so by examining the factors that are related to mobile broadband penetration. Within this framework, it aims to understand what kind of policies/regulations, if any, are necessary and/or sufficient conditions for higher mobile broadband (high speed mobile Internet) penetration rates. Although many studies have probed the factors influencing fixed broadband penetration, few studies have focused on mobile broadband. Because policy, supply, and demand factors interact with each other, it is difficult to examine the complexity of multiple interactions among these factors by only using economic approaches or case studies. In order to capture the complicated interactions among these factors, Qualitative Comparative Analysis (QCA) was utilized in addition to econometric approaches to analyze the policy and economic factors that affect mobile broadband penetration. This allows a detailed examination of how broadband-related regulations/policies and other economic factors (both on the supply and demand side of broadband markets) affect mobile broadband penetration in OECD (Organisation for Economic Co-operation and Development) countries. Using QCA, the dissertation found six necessary conditions for higher mobile broadband penetration: 1) technology neutrality, 2) higher quality of regulation, 3) higher fixed broadband penetration rates, 4) higher mobile competitive intensity, 5) higher urban population, and 6) higher education. Analyzing sufficient conditions showed several paths for a country to have higher mobile broadband penetration, all of which were combinations of factors. This indicates the complexity of the interaction of various conditions for mobile broadband penetration. According to the sufficient solutions, high education, high income, higher fixed broadband penetration, a competitive mobile market, and higher urban population were the most important factors for a country to have higher mobile broadband penetration rates. The results of econometric analyses were largely consistent with these findings and also found income, education, and competition to be important determinants of mobile broadband penetration. Overall, the dissertation shows that policy makers may be able to contribute to increased mobile broadband penetration if they can improve the six conditions necessary for such an outcome. However, it is more difficult to find conditions that are sufficient. The analysis suggests that the sufficient conditions to improve mobile broadband penetration vary depending on the specific circumstances. For example, if a country does not have high income, it is important for the government to include mobile broadband into the universal service objective. Although some factors can be affected by policy makers in the short run or long run, some factors such as education are outside of the remit of broadband regulators and therefore require broader policy coordination. Keywords: mobile Internet, mobile broadband, regulation, public policy, Qualitative Comparative Analysis, panel data ACKNOWLEDGEMENTS Writing this dissertation was an amazing and challenging experience for me. So many people have helped me through this process. Without them, I would not be able to finish the dissertation. Specifically, I would like to express my deepest gratitude to my awesome advisor and mentor, Professor Johannes Bauer, for his great patience and guidance. He spent so much time meeting with me and providing feedback on my dissertation. He not only cares about my academic success, but also cares about my well-being. He is always very encouraging and understanding. My Committee members are all very remarkable: Professor Robert LaRose, Professor Steve Wildman, Professor Stephen Lacy, and Professor Adam Candeub. They have been very supportive and have provided me with a lot of great advice. I really thank them from the bottom of my heart. They were always a source of inspiration that helped me through difficult times. I also want to thank Professor Shelia Cotten for her great support and encouragement. She is very considerate and understanding. Without her encouragement, I would not have been able to have the confidence to finish my dissertation. In addition, I feel really thankful to Professor Rabindra (Robby) Ratan and his wife Jeanne. They are like my family here! I remember how happy they were for me when I told them that I was going to defend my dissertation. I also want to thank Dr. R.V. Rikard, Dr. Sung Wook Ji, Dr. Anna Argyris, and Dr. Bill Dutton for offering their time, resources, and support. My cohorts at the MIS Ph.D. program are also very important to me. Yu-Hao, Tammy, and Kanni have been my greatest support. Young June and CK are very encouraging and never iv lost faith in my ability to achieve my goals. Wenjuan has been very nice and supportive too with her selfless assistance. The writing group I have with Young June, Janine, and Heather is like my support group. I also want to thank Soo, Montina, Tim, and Shupei for their help and great support. Furthermore, I am thankful to Reba, Brandon, Janine, Tian, Dyugu, Chris, Abudullah, Brigitte, Carol, Ruth, Wonkyung, Chen, Guan, Clara, Chris, Hyun Jung, Yumi, and Yoshi. In addition, I want to express my gratitude to friends and teachers outside of the program. Jackie, Jihyun, Jinmi, Eun Mi, Karen, and Pam are always very encouraging. Shu-Wei and Wei- Wen are my family here! Without their support and help, I would not have made it through the most difficult times. I also want to recognize Dr. Ragin, Dr. Rubinson, and Dr. Kent for helping me with my questions on QCA analyses. I also want to thank my good friends and teachers from Taiwan. Yi-chen, Jasmine, Chien, Peipei, Rara, Gladys, and Tzu-yuan, I want to thank them for always being so encouraging and supportive. I want to express my gratitude to Professor Shih- hung Lo and Liyun Lin, for their advice and inspiration. I greatly appreciate the Graduate School and the College of Communication Arts and Science for the Dissertation Completion Fellowship. I am also very grateful for being a student at the Department of Media and Information and the Media and Information Studies Ph.D. program. Finally, I want to thank my family for their great support. They are always there for me. Furthermore, the most important thing I have learned through this process is that God is amazing. If I have ever accomplished anything, that is because of the blessings of God and the love that I have received from HIM! v TABLE OF CONTENTS LIST OF TABLES ..................................................................................................................... viii LIST OF FIGURES ..................................................................................................................... ix Chapter 1 ....................................................................................................................................... 1 Introduction: Mobile Broadband ................................................................................................ 1 Examining Factors Influencing Mobile Broadband Adoption: An Overview ............................ 3 Chapter 2 ....................................................................................................................................... 9 Mobile Broadband in OECD Countries ..................................................................................... 9 European Countries ................................................................................................................... 11 United States and Canada ......................................................................................................... 14 Australia and New Zealand ....................................................................................................... 15 Japan and South Korea.............................................................................................................. 16 South America: Chile and Mexico ............................................................................................ 16 Fixed and Mobile Broadband .................................................................................................... 17 Chapter 3 ..................................................................................................................................... 20 The Role and Effects of Mobile Broadband Policy: Theoretical Foundations...................... 20 Policy and Regulatory Factors .................................................................................................. 24 Universal Access Policies ..................................................................................................... 24 Mobile Broadband Universal Service ............................................................................... 24 Policies Related to Competition and Cooperation among Service Providers ....................... 26 Spectrum Management Policy .........................................................................................