Excessive(?) Entry of National Telecom Networks, 1990-2001
AbstractWe document entry and capacity expansion in US long-distance fiber-optic networks before and during the “telecom boom.” We disentangle the many swaps and leases between networks in order to measure owned route miles versus route miles shared with other carriers. Entry appears much more moderate when these shared miles are not counted. Preemption strategies can lead to excessive entry, and we find evidence for preemptive behavior regarding total miles (including swaps and leases) but less for preemption regarding owned miles. We conclude that entry was excessive only with regard to swaps and leases, but not with regard to the physical building of the networks.
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Bibliographic InfoPaper provided by NET Institute in its series Working Papers with number 03-07.
Length: 33 pages
Date of creation: Dec 2003
Date of revision:
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Web page: http://www.NETinst.org/
telecommunications; investment; preemption;
Other versions of this item:
- Christiaan Hogendorn, 2006. "Excessive(?) Entry of National Telecom Networks, 1990-2001," Wesleyan Economics Working Papers 2006-001, Wesleyan University, Department of Economics.
- L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
- L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
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