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Asymmetric Broadband Wholesale Regulation

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  • Hoernig, Steffen

Abstract

Due to technological convergence, multiple infrastructures can now offer broadband or triple-play services, while the existing access regulation is based on a single essential network. We show that continued asymmetric access regulation of one network does not control sufficiently for market power and benefits the unregulated network, and that symmetric regulation would lead to higher consumer surplus. Furthermore, the whole setup of access regulation may not be viable in the long run if regulatory constraints provide strong first-mover advantages to the unregulated network.

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Bibliographic Info

Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 8399.

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Date of creation: May 2011
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Handle: RePEc:cpr:ceprdp:8399

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Related research

Keywords: Access regulation; Cable; Convergence; Copper;

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References

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  1. Jerry A. Hausman & J. Gregory Sidak & HalJ. Singer, 2001. "Cable Modems and DSL: Broadband Internet Access for Residential Customers," American Economic Review, American Economic Association, vol. 91(2), pages 302-307, May.
  2. Michael H. Riordan & Yongmin Chen, 2005. "Price and Variety in the Spokes Model," Discussion Papers 0405-20, Columbia University, Department of Economics.
  3. von Ungern-Sternberg, Thomas, 1991. "Monopolistic Competition on the Pyramid," Journal of Industrial Economics, Wiley Blackwell, vol. 39(4), pages 355-68, June.
  4. Hoernig, Steffen, 2010. "Competition Between Multiple Asymmetric Networks: Theory and Applications," CEPR Discussion Papers 8060, C.E.P.R. Discussion Papers.
  5. Crandall Robert W., 2008. "Letting Go? The Federal Communications Commission in the Era of Deregulation," Review of Network Economics, De Gruyter, vol. 7(4), pages 1-28, December.
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Cited by:
  1. Noriaki Matsushima & Keizo Mizuno, 2012. "Infrastructure Upgrades and Foreclosure with Coexistence of Service-Based and Facility-Based Firms," ISER Discussion Paper 0860, Institute of Social and Economic Research, Osaka University.
  2. George HOUPIS & JĂșlia LUCENA BETRIU & Juana SANTAMARIA, 2011. "Geographic segmentation of broadband markets: appropriate differentiation or risk to a single EU market?," Communications & Strategies, IDATE, Com&Strat dept., vol. 1(82), pages 105-126, 2nd quart.

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