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Investment in Broadband Infrastructure Under Local Deregulation: Evidence from the U.K. Broadband Market

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  • Nadine Fabritz

    ()

  • Oliver Falck

Abstract

This paper investigates telecommunication operator investment in broadband infrastructure after local deregulation of the wholesale broadband access market. Using a panel dataset covering all 5,598 exchange areas in the United Kingdom, we exploit regional differences in deregulation following a 2008 reform. Controlling for initial conditions, first-difference estimates show that local deregulation increases local investment in infrastructure by both the incumbent and competitors.

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File URL: http://www.cesifo-group.de/portal/page/portal/DocBase_Content/WP/WP-CESifo_Working_Papers/wp-cesifo-2013/wp-cesifo-2013-06/cesifo1_wp4277.pdf
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Bibliographic Info

Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 4277.

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Date of creation: 2013
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Handle: RePEc:ces:ceswps:_4277

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Keywords: telecommunication; regulation; infrastructure investment; wholesale broadband access; United Kingdom;

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  1. Nardotto, Mattia & Valletti, Tommaso & Verboven, Frank, 2012. "Unbundling the incumbent: Evidence from UK broadband," CEPR Discussion Papers 9194, C.E.P.R. Discussion Papers.
  2. Bourreau, Marc & Dogan, Pinar, 2004. "Service-based vs. facility-based competition in local access networks," Information Economics and Policy, Elsevier, vol. 16(2), pages 287-306, June.
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Cited by:
  1. Nadine Fabritz & Oliver Falck, 2014. "Local Deregulation of the Wholesale Broadband Access Market," CESifo DICE Report, Ifo Institute for Economic Research at the University of Munich, vol. 11(4), pages 38-43, 01.
  2. Ingo Vogelsang, 2013. "The Endgame of Telecommunications Policy? A Survey," CESifo Working Paper Series 4545, CESifo Group Munich.

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