This dissertation aims to provide empirical insight into the effectiveness of governmental intervention that helps to explain the extension of broadband penetration at the national level and to propose an appropriate perspective for explaining governmental intervention in the process of broadband proliferation. Criticizing the previous studies that focused on the supply side of governmental action, this dissertation expands the scope of governmental intervention to supply and demand sides. To prosecute this purpose on a measurable basis, the scope of this dissertation is focused on the impact of local loop unbundling, privatization using the ownership of incumbent carriers and market competition levels in the supply side and government online service in the demand side.

A conceptual model was constructed using five groups of factors for the diffusion of broadband at the national level. From the results of panel and OLS regression analyses, this study finds evidence that the availability of broadband services is certainly influenced by governmental interventions from both supply and demand sides. The effect of governmental intervention is also significant when controlling economic, technological, demographic, and cultural factors in developed and developing countries.