Eduardo Araral

Can competition-enhancing regulation bridge the quality divide in Internet provision?

There is a growing divide in Internet quality of service (QoS) between developed and developing countries. With a panel data of 160 countries for the years 2008-2016, we examined whether the adoption of more pro-competition regulation can narrow this quality divide. Internet quality of service, measured as average connection speed, increased by three times greater in developed compared to developing countries during the period studied. We found that a unit increase in the pro-competition score increased the average connection speed in developed but not in developing countries.