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Regulating Over-the-Top Service Providers in Two-Sided Content Markets: Insights from the Economic Literature

Author

Listed:
  • Jan KRÄMER

    (University of Passau, Chair of internet and Telecommunications Business)

  • Michael WOHLFARTH

    (University of Passau, Chair of internet and Telecommunications Business)

Abstract

In this paper we scrutinize the request to regulate access to the OTTs' essential services bottleneck based on insights from the economic literature. First, we delineate that OTTs may pursue a one-sided or two-sided business model, which makes a fundamental difference with respect to the underlying economics. Focusing on two-sided content markets, we then discuss three scenarios that differ in the degree of competition that OTTs may face, ranging from potential competition over access-based competition (via access regulation) to actual platform competition. Although access regulation may have merits, it is very questionable whether such regulation should be pursued due to a high uncertainty concerning the economic benefits and necessity as well as practical legal problems.

Suggested Citation

  • Jan KRÄMER & Michael WOHLFARTH, 2015. "Regulating Over-the-Top Service Providers in Two-Sided Content Markets: Insights from the Economic Literature," Communications & Strategies, IDATE, Com&Strat dept., vol. 1(99), pages 71-90, 3rd quart.
    • Handle: RePEc:idt:journl:cs9904
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    References listed on IDEAS

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    Cited by:

    1. Jirakasem, Monarat & Mitomo, Hitoshi, 2017. "Regional Telecommunications Policy and ASEAN's response to Convergence and Over-the-top (OTT) services," 28th European Regional ITS Conference, Passau 2017 169469, International Telecommunications Society (ITS).
    2. Jirakasem, Monarat & Mitomo, Hitoshi, 2019. "Relationship of Over-the-top (OTT) Communications and Traditional Telecommunications Services: the Case of Thailand," 30th European Regional ITS Conference, Helsinki 2019 205184, International Telecommunications Society (ITS).
    3. Krämer, Jan & Wohlfarth, Michael, 2018. "Market power, regulatory convergence, and the role of data in digital markets," Telecommunications Policy, Elsevier, vol. 42(2), pages 154-171.
    4. Bertschek, Irene & Briglauer, Wolfgang & Hüschelrath, Kai & Krämer, Jan & Frübing, Stefan & Kesler, Reinhold & Saam, Marianne, 2016. "Metastudie zum Fachdialog Ordnungsrahmen für die Digitale Wirtschaft: Im Auftrag des Bundesministeriums für Wirtschaft und Energie (BMWi)," ZEW Expertises, ZEW - Leibniz Centre for European Economic Research, number 147040.

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    More about this item

    JEL classification:

    • K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

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