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Access regulation, competition, and broadband penetration: An international study

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  • Bouckaert, Jan
  • van Dijk, Theon
  • Verboven, Frank

Abstract

The evolution of broadband penetration has shown substantial differences between OECD countries. This paper empirically investigates to what extent different forms of regulated competition explain these international differences. It distinguishes three modes of competition between broadband internet access providers that result from regulatory policies: (1) inter-platform competition; (2) facilities-based intra-platform competition; and (3) service-based intra-platform competition. In most countries these forms of competition co-exist although their intensity varies from country to country. Intra-platform competition may differ among countries depending on the degree of mandatory access obligations imposed by the regulator on the dominant network firm. Based on a sample of OECD countries, the analysis finds that inter-platform competition has been a main driver of broadband penetration. The two types of intra-platform competition have a considerably smaller effect on the broadband penetration. Linking these findings back to access regulation suggests that the "stepping stone" or "ladder of investment" theories might not provide the justification to impose extensive mandatory access obligations on DSL incumbents.

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Bibliographic Info

Article provided by Elsevier in its journal Telecommunications Policy.

Volume (Year): 34 (2010)
Issue (Month): 11 (December)
Pages: 661-671

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Handle: RePEc:eee:telpol:v:34:y:2010:i:11:p:661-671

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Keywords: Broadband penetration Access regulation OECD-countries;

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Cited by:
  1. Joan Calzada & Fernando Martínez, 2013. "“Broadband prices in the European Union: competition and commercial strategies”," IREA Working Papers 201309, University of Barcelona, Research Institute of Applied Economics, revised May 2013.
  2. Rajabiun, Reza & Middleton, Catherine, 2013. "Regulation, investment and efficiency in the transition to next generation networks: Evidence from the European Union," 24th European Regional ITS Conference, Florence 2013 88536, International Telecommunications Society (ITS).
  3. Szilvia BOTOS, 2011. "Broadband ranking of regions and its methodological basis," Scientific Bulletin - Economic Sciences, University of Pitesti, vol. 10(1), pages 126-134.
  4. Ingo Vogelsang, 2014. "Will the U.S. and EU Telecommunications Policies Converge? A Survey," CESifo Working Paper Series 4843, CESifo Group Munich.
  5. Jeanjean, François, 2012. "Incentive to invest in improving the quality in telecommunication industry," 23rd European Regional ITS Conference, Vienna 2012 60375, International Telecommunications Society (ITS).
  6. Harald Gruber & Pantelis Koutroumpis, 2013. "Competition enhancing regulation and diffusion of innovation: the case of broadband networks," Journal of Regulatory Economics, Springer, vol. 43(2), pages 168-195, April.
  7. Tselekounis, Markos & Xylogianni, Eirini & Varoutas, Dimitris & Martakos, Drakoulis, 2013. "Geographically differentiated NGA deployment," 24th European Regional ITS Conference, Florence 2013 88533, International Telecommunications Society (ITS).
  8. Okamoto, Yoshikazu & Nakamura, Akihiro, 2013. "The influence of local loop unbundling on investment by incumbent telecommunications operators in the OECD member countries," 24th European Regional ITS Conference, Florence 2013 88499, International Telecommunications Society (ITS).
  9. Briglauer, Wolfgang, 2013. "The impact of regulation and competition on the adoption of fibre-based broadband services: Recent evidence from the European Union member states," 24th European Regional ITS Conference, Florence 2013 88494, International Telecommunications Society (ITS).
  10. Fageda, Xavier & Rubio-Campillo, Rafael & Termes-Rifé, Montserrat, 2014. "Determinants of broadband access: Is platform competition always the key variable to success?," Information Economics and Policy, Elsevier, vol. 26(C), pages 58-67.
  11. Parcu, Pier Luigi & Silvestri, Virginia, 2013. "Electronic communications regulation in Europe: An overview of past and future problems," 24th European Regional ITS Conference, Florence 2013 88509, International Telecommunications Society (ITS).
  12. Kongaut, Chatchai & Bohlin, Erik, 2012. "An empirical study of unbundling regulation on broadband adoption in OECD countries: What can we learn for future regulation?," 19th ITS Biennial Conference, Bangkok 2012: Moving Forward with Future Technologies - Opening a Platform for All 72536, International Telecommunications Society (ITS).
  13. Xavier Fageda & Rafael Rubio & Montserrat Termes, 2013. "“Determinants of Broadband Access: Is Platform Competition always the Key Variable to Success?”," IREA Working Papers 201303, University of Barcelona, Research Institute of Applied Economics, revised Mar 2013.
  14. Gruber, Harald & Koutroumpis, Pantelis, 2011. "Procompetitive infrastructure sector regulation and diffusion of innovation: The case of broadband networks," 22nd European Regional ITS Conference, Budapest 2011: Innovative ICT Applications - Emerging Regulatory, Economic and Policy Issues 52161, International Telecommunications Society (ITS).
  15. Lestage, Romain & Flacher, David & Kim, Yeonbae & Kim, Jihwan & Kim, Yunhee, 2013. "Competition and investment in telecommunications: Does competition have the same impact on investment by private and state-owned firms?," Information Economics and Policy, Elsevier, vol. 25(1), pages 41-50.
  16. Howell, Bronwyn, 2012. "Competition and Regulation Policy in Antipodean Government-Funded UltraFast Fibre Broadband Markets," Working Paper Series 2787, Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation.
  17. Shinohar, Sobee & Akematsu, Yuji & Tsuji, Masatsugu, 2012. "Migration factors among broadband services: Panel data analysis," 19th ITS Biennial Conference, Bangkok 2012: Moving Forward with Future Technologies - Opening a Platform for All 72543, International Telecommunications Society (ITS).
  18. Ingo Vogelsang, 2013. "The Endgame of Telecommunications Policy? A Survey," Review of Economics, Lucius & Lucius, vol. 64(3), pages 193-269.
  19. Wolfgang Briglauer, 2014. "The impact of regulation and competition on the adoption of fiber-based broadband services: recent evidence from the European union member states," Journal of Regulatory Economics, Springer, vol. 46(1), pages 51-79, August.

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