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Ownership Structure of Cable Networks and Competition in Local Access

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Author Info

  • Duarte Brito

    ()
    (Universidade Nova de Lisboa)

  • Pedro Pereira

    ()
    (Autoridade da ConcorrĂȘncia)

Abstract

In this paper, we discuss the role of cable television networks and their ownership structure in promoting competition in the local access market. First, we show that the dual ownership of a local telephone network and a cable network, compared with separate ownership, may increase or decrease incentives to invest in upgrading the cable television network. Second, we argue that separate ownership of the two networks is important to promote competition in local access.

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File Function: First version, 2005
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Bibliographic Info

Paper provided by Portuguese Competition Authority in its series Working Papers with number 09.

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Length: 31 pages
Date of creation: Apr 2005
Date of revision:
Publication status: Forthcoming in J.P. Choi ed., Recent Developments in Antitrust Analysis, MIT Press
Handle: RePEc:pca:wpaper:09

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Keywords: Cable Networks; Local Access; Competition;

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  1. M. Bourreau & P. Dogan, . "Unbundling the Local Loop," Working Paper 33648, Harvard University OpenScholar.
  2. Varian, Hal R, 1980. "A Model of Sales," American Economic Review, American Economic Association, vol. 70(4), pages 651-59, September.
  3. 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.
  4. Braeutigam, Ronald R, 1979. "Optimal Pricing with Intermodal Competition," American Economic Review, American Economic Association, vol. 69(1), pages 38-49, March.
  5. Narasimhan, Chakravarthi, 1988. "Competitive Promotional Strategies," The Journal of Business, University of Chicago Press, vol. 61(4), pages 427-49, October.
  6. Cadima, Nuno & Pita Barros, Pedro Luis, 2000. "The Impact of Mobile Phone Diffusion on the Fixed-Link Network," CEPR Discussion Papers 2598, C.E.P.R. Discussion Papers.
  7. Rodini, Mark & Ward, Michael R. & Woroch, Glenn A., 0. "Going mobile: substitutability between fixed and mobile access," Telecommunications Policy, Elsevier, vol. 27(5-6), pages 457-476, June.
  8. Loomis, David G. & Swann, Christopher M., 2005. "Intermodal competition in local telecommunications markets," Information Economics and Policy, Elsevier, vol. 17(1), pages 97-113, January.
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