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Entry in Local Telecommunication Markets

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Author Info
Donald Alexander ()
Robert Feinberg ()

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Abstract

In this paper, we explore the determinants of recent entry into local exchange service, and the role that regulatory policies have had in aiding this policy objective. Our results suggest that the 1996 Telecommunications Act did lead to some entry, but that strategic non-price behavior by incumbents may have offset this impact to some extent. We also find that regulatory policies and market fundamentals play an important role in determining entry. Clearly, market size (measured in various ways) is an important determinant of entry, while there is empirical support for the role of more flexible regulatory mechanisms in promoting new entry. Copyright Kluwer Academic Publishers 2004

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File URL: http://hdl.handle.net/10.1007/s11151-004-1054-6
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Publisher Info
Article provided by Springer in its journal Review of Industrial Organization.

Volume (Year): 25 (2004)
Issue (Month): 2 (06)
Pages: 107-127
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Handle: RePEc:kap:revind:v:25:y:2004:i:2:p:107-127

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Related research
Keywords: Deregulation; entry and telecommunications.;

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Cited by:
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  1. H. Damar, 2009. "Why Do Payday Lenders Enter Local Markets? Evidence from Oregon," Review of Industrial Organization, Springer, vol. 34(2), pages 173-191, March. [Downloadable!] (restricted)
  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. Avi Goldfarb & Mo Xiao, 2008. "Who thinks about the competition? Managerial ability and strategic entry in US local telephone markets," Working Papers 08-21, NET Institute, revised Oct 2008. [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. Eva Jansson, 0. "Deregulation, property rights, and legal system," European Journal of Law and Economics, Springer, vol. 0, pages 1-25. [Downloadable!] (restricted)
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