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How access pricing and entry interact

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  • Cave, Martin
  • Vogelsang, Ingo

Abstract

The paper reviews the preceeding theoretical and econometric analysis, and the case study of the Netherlands. It suggests that entrants' strategies will be influenced by the level of access prices and on the degree of investment in infrastructure which entrants have to make to be eligible to purchase interconnection services at wholesale prices. Entrants will typically invest first in replicable assets, and then progress to less replicable ones--although this will also depend upon their initial endowments. This suggests that entry may best be encouraged initially by low access prices, with those prices possibly increasing over time as assets are replicated.

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Bibliographic Info

Article provided by Elsevier in its journal Telecommunications Policy.

Volume (Year): 27 ()
Issue (Month): 10-11 (November)
Pages: 717-727

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Handle: RePEc:eee:telpol:v:27:y::i:10-11:p:717-727

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Related research

Keywords: Access pricing Facilities-based competition Regulation;

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Citations

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Cited by:
  1. Christian Wey & Pio Baake & Ulrich Kamecke, 2005. "Neue Märkte unter dem neuen Rechtsrahmen: Endbericht ; Forschungsprojekt im Auftrag der Deutsche Telekom AG," DIW Berlin: Politikberatung kompakt, DIW Berlin, German Institute for Economic Research, volume 6, number pbk6.
  2. Kranz, Johann & Picot, Arnold & Roemer, Benedikt, 2011. "Unlocking the potential of the smart metering technology: How can regulation level the playing-field for new services in smart grids?," 22nd European Regional ITS Conference, Budapest 2011: Innovative ICT Applications - Emerging Regulatory, Economic and Policy Issues 52183, International Telecommunications Society (ITS).
  3. Pio Baake & Brigitte Preißl (Eds.). Johannes M. Bauer & Per Björstedt & Elena Gallo & Anders Henten & Sven Lindmark & Martijn Poel & Enzo Pontarollo & Knud Erik Skouby & Jason Whalley, 2006. "Local Loop Unbundling and Bitstream Access: Regulatory Practice in Europe and the U.S," DIW Berlin: Politikberatung kompakt, DIW Berlin, German Institute for Economic Research, volume 20, number pbk20.
  4. Kenneth Fjell & Øystein Foros & Debashis Pal, 2006. "Endogenous Average Cost Based Access Pricing," University of Cincinnati, Economics Working Papers Series 2006-01, University of Cincinnati, Department of Economics.
  5. Ingo Vogelsang, 2010. "Incentive Regulation, Investments and Technological Change," CESifo Working Paper Series 2964, CESifo Group Munich.
  6. Baake, Pio & Kamecke, Ulrich & Wey, Christian, 2005. "A Regulatory Framework for New and Emerging Markets," MPRA Paper 2518, University Library of Munich, Germany.
  7. Christian M. Bender & Georg Götz, 2011. "Coexistence of Service- and Facility-Based Competition: The Relevance of Access Prices for "Make-or-Buy"-Decisions," MAGKS Papers on Economics 201107, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
  8. Markos Tselekounis & Dimitris Varoutas & Drakoulis Martakos, 2012. "On the social optimality of make-or-buy decisions," Journal of Regulatory Economics, Springer, vol. 41(2), pages 238-268, April.
  9. Garrone, Paola & Zaccagnino, Michele, 2011. "The relationship between local loop unbundling and the deployment of alternative broadband networks: An empirical analysis," 22nd European Regional ITS Conference, Budapest 2011: Innovative ICT Applications - Emerging Regulatory, Economic and Policy Issues 52217, International Telecommunications Society (ITS).
  10. Fabio Manenti & Antonio Scialà, 2011. "Access Regulation, Entry, and Investment in Telecommunications," RSCAS Working Papers 2011/37, European University Institute.
  11. Piatek, Stanislaw, 2008. "Investment and Regulation in Telecommunications," MPRA Paper 23995, University Library of Munich, Germany.
  12. Knieps, Günter & Zenhäusern, Patrick, 2009. "Stepping stones and access holidays: the fallacies of regulatory micro-management," Discussion Papers 123, University of Freiburg, Institute for Transport Economics and Regional Policy.
  13. Peter Heinacher & Brigitte Preissl, 2006. "Fibre-optic Networks: On Investment, Regulation and Competition," CESifo DICE Report, Ifo Institute for Economic Research at the University of Munich, vol. 4(3), pages 22-28, October.

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