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The Market Structure of Broadband Telecommunications

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Author Info
Faulhaber, Gerald R
Hogendorn, Christiaan

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Abstract

The recent growth of the Internet is creating markets for broadband telecommunications networks. In the past, virtually all such "infrastructure" networks have been subject to government regulation. Two reasons advanced for this market intervention are (i) such networks constitute a natural monopoly, and (ii) to achieve "universal service", in which all citizens have access to services. In this paper, we develop a model and estimate it using engineering data which tests if these two hypotheses are likely to obtain for broadband networks. We find that oligopolistic competition is likely to emerge for demand levels approaching that of today's cable television. Copyright 2000 by Blackwell Publishing Ltd

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Publisher Info
Article provided by Blackwell Publishing in its journal Journal of Industrial Economics.

Volume (Year): 48 (2000)
Issue (Month): 3 (September)
Pages: 305-29
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Handle: RePEc:bla:jindec:v:48:y:2000:i:3:p:305-29

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  1. Manuel Willington & Fabián Basso, 2006. "Regulación, Cobertura y Competencia en el Mercado de la Banda Ancha," ILADES-Georgetown University Working Papers inv177, Ilades-Georgetown University, School of Economics and Bussines. [Downloadable!]
  2. Heikki Eskelinen & Lauri Dieter Frank & Timo Hirvonen, 2004. "Broadband strategies in thin milieux: comparing nordic experiences," ERSA conference papers ersa04p257, European Regional Science Association. [Downloadable!]
  3. Hoernig, Steffen, 2005. "Should Uniform Pricing Contraints be Imposed on Entrants?," CEPR Discussion Papers 5052, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  4. Christiaan Hogendorn, 2003. "Excessive(?) Entry of National Telecom Networks, 1990-2001," Working Papers 03-07, NET Institute, revised Dec 2003. [Downloadable!]
    Other versions:
  5. Christiaan Hogendorn, 2007. "Broadband Internet: net neutrality versus open access," International Economics and Economic Policy, Springer, vol. 4(2), pages 185-208, August. [Downloadable!] (restricted)
    Other versions:
  6. Prieger, James, 2002. "The Supply Side of the Digital Divide: Is There Equal Availability in the Broadband Internet Access Market?," Working Papers 02-5, University of California at Davis, Department of Economics. [Downloadable!]
    Other versions:
  7. T. Beard & Michael Stern, 2008. "Bounding consumer surplus by monopoly profits," Journal of Regulatory Economics, Springer, vol. 34(1), pages 86-94, August. [Downloadable!] (restricted)
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