Examining the Influencing Factors and the Most Efficient Point of Broadband Adoption in China

This paper examines several key factors affecting the adoption rate of broadband Internet access in 31 provinces of China by employing the Stochastic Frontier Analysis Model. It was found that disposable income, penetration rate of fixed phones, number of Internet users, and educational attainment were the most important factors in the adoption of broadband. In addition, we present the relative market potential of each province by exploring the most efficient point for broadband penetration. Our results imply that the market potential is still much greater in the more developed areas of China where the actual adoption rate is high, such as municipalities and the southeast coast region.