The evolution of demand and pricing for internet services

Byline: C. Campi The aim of this paper is to analyse and to estimate the demand for internet dial-up access. The study is both regional and national, giving rise to a static and to a dynamic analysis. The static analysis permits, through a multiple regression model, to analyse the socioeconomic drivers of the demand and to identify potential new market segments. The national analysis has requested the implementation of a general logistic evolution model, subsequently applied to Italian data. The model allows the monthly dial-up traffic values to be forecast, and permits the measurement of both the existing link between internet tariffs and traffic and the influence of different pricing policies on internet traffic and revenues.