Bacha, Radia and Gasmi, Farid (2022) The broadband diffusion process and its determinants in Algeria: A simultaneous estimation. TSE Working Paper, n. 22-1309, Toulouse

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Digital transformation engendered by ICT advances, most notably broadband, pertains to many sectors that are known to drive economic development. This paper seeks to highlight market structure, institutional, and socio-economic factors that influence broadband adoption in Algeria. We apply to a novel 2003-2019 database a procedure that simultaneously, instead of sequentially as typically done, selects the best among the Bass, Gompertz, and Logistic
innovation diffusion models estimated with Nonlinear Least Squares and searches for significant determinants of broadband adoption. We find that the data fits reasonably well the Gompertz and Logistic distributions with the latter outperforming the former not only from a statistical standpoint but also and more importantly for it captures Algeria's significant delay in the diffusion of broadband due to the social turmoil of the 1990 years’ decade. We identify
some policy levers for fostering ICT applications. We find that the degree of concentration has a U-shaped impact on broadband adoption and that institutional quality, mobile broadband introduction, and tertiary education enrollment have a positive impact. These findings suggest that broadband adoption in Algeria can be expected to gain from encouraging entry with
differentiated broadband services through higher-generation access technologies, improving regulatory governance, and enhancing digital literacy through higher education.

Item Type: Monograph (Working Paper)
Language: English
Date: February 2022
Place of Publication: Toulouse
Uncontrolled Keywords: Broadband,, Digital transformation,, Innovation diffusion models, Regulation, Competition.
JEL Classification: L51 - Economics of Regulation
L86 - Information and Internet Services; Computer Software
L96 - Telecommunications
O14 - Industrialization; Manufacturing and Service Industries; Choice of Technology
O2 - Development Planning and Policy
O33 - Technological Change - Choices and Consequences; Diffusion Processes
O55 - Africa
Divisions: TSE-R (Toulouse)
Institution: Université Toulouse 1 Capitole
Site: UT1
Date Deposited: 16 Feb 2022 15:36
Last Modified: 03 Oct 2022 11:45
OAI Identifier:
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