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An Empirical Examination of Entry Patterns in Local Telephone Markets

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Author Info
Zolnierek, James
Eisner, James
Burton, Ellen
Abstract

In this analysis we examine the market entry patterns of new local telephone companies. We construct and estimate a multinomial logit model using information describing numbering code distribution within local telephone markets and the associated income, density, and regulatory characteristics of these markets. Our findings support the conventional wisdom that facilities-based entry by new local competitors is more likely to occur in large urban telephone markets. In addition, we present evidence that, with the exception of territories served by Ameritech, entry is more likely to occur in Bell Operating Company service territories. Copyright 2001 by Kluwer Academic Publishers

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Publisher Info
Article provided by Springer in its journal Journal of Regulatory Economics.

Volume (Year): 19 (2001)
Issue (Month): 2 (March)
Pages: 143-59
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Handle: RePEc:kap:regeco:v:19:y:2001:i:2:p:143-59

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  1. Nicholas Economides & Katja Seim & V. Brian Viard, 2007. "Quantifying the Benefits of Entry into Local Phone Service," Working Papers 07-28, New York University, Leonard N. Stern School of Business, Department of Economics. [Downloadable!]
    Other versions:
  2. Eric P. Chiang & Janice A. Hauge, 2007. "Funding Universal Service: The Effect of Telecommunications Subsidy Programs on Competition and Retail Prices," Working Papers 07-08, NET Institute, revised Aug 2007. [Downloadable!]
  3. Eric Chiang & Janice Hauge & Mark Jamison, 2007. "Subsidies and distorted markets: Do telecom subsidies affect competition?," Working Papers 07002, Department of Economics, College of Business, Florida Atlantic University. [Downloadable!]
  4. Russell Pittman, 2001. "Vertical Restructuring of the Infrastructure Sectors of Transition Economies," Industrial Organization 0111002, EconWPA. [Downloadable!]
  5. Janice Hauge & Mark Jamison & R. Jewell, 2009. "A Consideration of Telecommunications Market Structure in the Presence of Municipal Provision: The Case of US Cities," Review of Industrial Organization, Springer, vol. 34(2), pages 135-152, March. [Downloadable!] (restricted)
  6. Shane Greenstein & Michael Mazzeo, 2003. "Differentiation Strategy and Market Deregulation: Local Telecommunication Entry in the Late 1990s," NBER Working Papers 9761, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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