On the (In) Effectiveness of Policies to Promote Broadband Diffusion in Europe (2003-2010): An Econometric Assessment
AbstractThis paper presents an updated empirical assessment of the relative effectiveness of intra-platform and inter-platform competition in terms of broadband diffusion in Europe between 2003 and 2010. It relies on an econometric analysis of 18 European countries. To approximate two forms of competition within a same platform, we distinguish between service-based access and facility-based access. The first type requires less investment from entrants than the second which allows entrants to differentiate their product. Our results update and validate earlier studies. We show that service-based intra-platform competition brought by access regulation is still not an accelerating factor of broadband diffusion (or investment) in Europe. In contrast, we find that both facility-based intra-platform competition brought by access regulation and inter-platform competition brought by the deployment of non-DSL technologies effectively fuels broadband diffusion. In sum, many EU countries may have underestimated the potential payoff of stimulating product differentiation through inter-platform and service-based intra-platform competition for the diffusion of broadband in Europe.
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Bibliographic InfoPaper provided by ULB -- Universite Libre de Bruxelles in its series Working Papers ECARES with number ECARES 2012-032.
Length: 17 p.
Date of creation: Sep 2012
Date of revision:
Publication status: Published by:
ICT; broadband diffusion; competition;
Find related papers by JEL classification:
- D43 - Microeconomics - - Market Structure and Pricing - - - Oligopoly and Other Forms of Market Imperfection
- L43 - Industrial Organization - - Antitrust Issues and Policies - - - Legal Monopolies and Regulation or Deregulation
- L63 - Industrial Organization - - Industry Studies: Manufacturing - - - Microelectronics; Computers; Communications Equipment
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-10-06 (All new papers)
- NEP-COM-2012-10-06 (Industrial Competition)
- NEP-EUR-2012-10-06 (Microeconomic European Issues)
- NEP-ICT-2012-10-06 (Information & Communication Technologies)
- NEP-REG-2012-10-06 (Regulation)
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- Joan Calzada & Fernando Martínez, 2013.
"“Broadband prices in the European Union: competition and commercial strategies”,"
IREA Working Papers
201309, University of Barcelona, Research Institute of Applied Economics, revised May 2013.
- Calzada, Joan & Martínez, Fernando, 2012. "Broadband prices in the European Union: Competition and commercial strategies," 23rd European Regional ITS Conference, Vienna 2012 60382, International Telecommunications Society (ITS).
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