This dissertation investigates the capacity required by an internet application in tandem with the network connection type (dial-up or broadband). An internet user’s experience in accessing various types of applications with either high bandwidth or low bandwidth is examined in a consumer choice model of broadband adoption. A consumer implicitly values the time-saving benefits derived from a higher speed internet connection used to access a particular internet application, and compares those utility benefits to the higher price of high speed connection services in making the decision to shift to broadband or remain with a dial-up connection. We find that using broadband rather than dial-up to run bandwidth intensive applications presents considerable gains in the implicit value of time saved. Assuming that internet users are rational utility maximizing agents, a logit model is used to calculate the likelihood of broadband adoption as a function primarily of the nature/type of the internet applications (“elastic or inelastic”). While the empirical results are generally consistent with our hypothesis that consumers are more likely to subscribe to broadband if they regularly run applications that are bandwidth intensive, the results vary somewhat by model specification, and are potentially sensitive to controlling for endogeneity. Correcting for endogeneity remains the major challenge in extending this research. Research Question: What is the relationship between consumer valuation of the net benefits of using bandwidth intensive applications and the adoption of broadband internet? Hypothesis: The less a consumer requires bandwidth intensive applications; the lower is the likelihood of switching from a low level bandwidth internet service like dial-up to a high level bandwidth internet type like broadband. While this relationship may appear obvious, it has not been systematically investigated or measured, nor has its importance in affecting lags in broadband adoption been adequately appreciated.

Despite a large investment, the majority of countries especially the UK demonstrate a slow adoption of broadband. In order to enhance the adoption and use of broadband this research examines the factors influencing the decisions of household consumers. This research aims to address the two main areas of concern: first, to investigate consumer-level factors affecting the adoption of broadband in UK households; and second, to understand the usage of broadband and its impact upon household consumers in the UK. This research adopted a quantitative approach that was executed in the following steps. First, it developed a conceptual model by selecting and justifying relevant constructs from appropriate theories and models related to technology adoption, usage and impact. Second, it operationalised the constructs by developing and validating the research instrument by employing the content validity, reliability and construct validity approach. Finally, it empirically validated and refined the conceptual model by employing a survey research approach. The findings suggested that all the constructs included in the conceptual model, except knowledge, significantly influence the consumers when adopting broadband in a UK household. The significant constructs include relative advantage, utilitarian outcomes, hedonic outcomes, primary influence, facilitating conditions resources and self-efficacy. The rate and variety of Internet usage is significantly higher for broadband consumers than narrowband ones. It was also found that significantly more numbers of broadband consumers perceived changes in time allocation patterns on various daily life activities than narrowband ones. This research contributes towards theory, practice and policy. The contribution of this research towards theory is that it integrates and determines the appropriate information systems (IS) literature in order to enhance knowledge of technology adoption from the consumers' perspectives. An added contribution to theory is the development and validation of a research instrument that future studies can utilise to examine broadband and other similar technologies in household context. Considering the slow adoption of broadband, this research also provides implications for policy makers and the providers of broadband in order to encourage and promote homogenous adoption and usage.