Estimating the demand for ADSL and ISDN services in Greece

Demetrius Yannelis, Apostolos G. Christopoulos, Fotis G. Kalantzis

Research output: Contribution to journalArticle

6 Citations (Scopus)

Abstract

The aim of this paper is to investigate the demand for broadband services in Greece and to estimate the price elasticity of the demand for ADSL and ISDN services as well as the cross-price elasticity between the two services. The empirical analysis uses the 384 kbps connections since for the period examined, over 85% of the total ADSL customers in Greece are connected at this bandwidth. The empirical analysis is based on an ad-hoc specification of the demand equation, with no reference to the utility maximization problem of the representative consumer. The results of the analysis show that both demands are inelastic. In addition, cross-price elasticity for ADSL is negative, indicating that ISDN is a complement to ADSL, whereas the demand for ISDN is almost neutral to ADSL.

Original languageEnglish
Pages (from-to)621-627
Number of pages7
JournalTelecommunications Policy
Volume33
Issue number10-11
DOIs
Publication statusPublished - Nov 2009

Keywords

  • ADSL
  • Broadband
  • Cross-price elasticity
  • ISDN
  • Own-price elasticity

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    Yannelis, D., Christopoulos, A. G., & Kalantzis, F. G. (2009). Estimating the demand for ADSL and ISDN services in Greece. Telecommunications Policy, 33(10-11), 621-627. https://doi.org/10.1016/j.telpol.2009.07.006