The reduction in fixed ICT spending is gradually exploited by the new and exist- ing firms, and the speed of adoption of the new possibility remains an unknown variable for us. It will depend on a number of macroeconomic and microeconomic factors and on policymaking as well. Moreover, it will be characterized by impor- tant strategic complementarities: adoption for a single firm is crucial if many firms are expected to adopt it, but it is not if they are not, which means that multiple equilibria could emerge (with slow or rapid adoption and with limited or deep adoption). For this reason we will adopt a reduced form.
