Analysis of the Competitiveness of Broadband over Power Line Communication in Korea

Abstract

This study analyzes factors affecting the competitiveness of broadband over power line communication (BPLC) and predicts demand for the service, based on quantitative information about consumer preferences drawn from a survey of Korean consumers. Findings from the estimation suggest that, although consumers value some beneficial features of BPLC, to be competitive the speed and stability of its data transmission needs to be improved. Moreover, on the basis of a market simulation, we expect BPLC to occupy only a small portion of Koreas Internet access market in the future, a finding we expect would hold true for other developed countries whose Internet access markets are already mature.