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|Issue Date:||2009-09-18 14:35:03 (UTC+8)|
DSL is one of primary broadband technologies to household users, and it is also in significant in terms of global broadband penetration rate, the number of subscribers, and the growth rate. Except for commercial institutes’ research periodically collecting data and analyzing the trend of market, there are few studies comparing cross-country DSL services since data are scattered on numerous ISPs’ web pages, and a comparison standard is not easy to establish. This study attempts to settle the problem of cross-country comparison. Initially, based on three representative countries’ data, DSL service price is disassembled into fundamental service characteristics in terms of hedonic pricing, and the primary service characteristics for specific country are located. But the primary characteristics have not been unchanged for years, even DSL service price remains stable, and with emergence of new broadband applications, such as IPTV, satellite TV, and voice over IP, ISPs’ profit profile has shifted from fundamental service characteristics, like speed and the number of IP address, to value-added service. However, this change on ISPs’ profit profile does not apply to each country with high DSL penetration rate. Our finding reveals that policy determines the focus of DSL service marketing. For those countries that ignore local loop unbundling policy, their DSL service marketing simply centers on fundamental characteristics; for those countries that emphasize local loop unbundling policy, their DSL service marketing focus on both fundamental characteristics and value-added services.
This study also indicates that the advantage of first mover for ISPs without wires benefited from local loop unbundling policy will not remain since incumbent telecoms also operate ISPs will soon catch up in a period from six months to one year. However, this study has demonstrated that local loop unbundling policy could facilitate the introduction and diversification of value-added service on DSL offering.
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