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Strategic technology adoption and entry deterrence in broadband

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  • Tedi Skiti

Abstract

In this article, we examine the role of strategic investment in the US broadband industry. In particular, we provide evidence that cable incumbents adjust their investment strategy in response to fiber entry threat and that these deterrence strategies have been successful particularly in intermediate sized markets. We compile data on broadband deployment and exogenous franchise agreements for potential fiber entrants at the most local level in New York State. The results indicate that strategic cable investment may negatively affect optical fiber diffusion.

Suggested Citation

  • Tedi Skiti, 2020. "Strategic technology adoption and entry deterrence in broadband," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 29(3), pages 713-729.
  • Handle: RePEc:oup:indcch:v:29:y:2020:i:3:p:713-729.
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    File URL: http://hdl.handle.net/10.1093/icc/dtz057
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    More about this item

    JEL classification:

    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
    • M20 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - General
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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