Analysis of the dynamic broadband technology competition

Abstract

Purpose – 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. Design/methodology/approach – It uses Lotka-Volterra equation to determine the dynamic competition pattern for xDSL, fibre-optic technologies, and HFC. Findings – 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. Originality/value – 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.