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International Broadband Deployment: The Impact of Unbundling

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  • Garcia-Murillo, Martha
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    Abstract

    This paper shows that unbundling an incumbent's infrastructure only results in a substantial improvement in broadband deployment for middle-income countries, but not for their high income counterparts. Our statistical analysis of approximately 100 countries showed that GDP per capita, population, competition and unbundling are all factors that can lead a carrier to provide broadband services in a country. The logit models show that unbundling has a significant positive impact on the availability of broadband services. The OLS analysis indicates that GDP per capita, population size, price, competition, the percentage of dial-up Internet users, and hosts all have positive effects on the number of subscribers. One implication of these results is that if a policy is to be implemented to promote broadband, it should either foster competition through unbundling and/or reduced prices. Efforts to develop local content can also improve broadband adoption.

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    File URL: http://mpra.ub.uni-muenchen.de/2442/
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    Bibliographic Info

    Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 2442.

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    Date of creation: Mar 2005
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    Handle: RePEc:pra:mprapa:2442

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    Related research

    Keywords: broadband; unbundling; competition;

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    References

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    1. Oecd, 2001. "The Development of Broadband Access in the OECD Countries," OECD Digital Economy Papers 56, OECD Publishing.
    2. Shleifer, Andrei & Vishny, Robert W, 1994. "Politicians and Firms," The Quarterly Journal of Economics, MIT Press, vol. 109(4), pages 995-1025, November.
    3. E. Santarelli & M. Vivarelli, 2000. "Is Subsidizing Entry An Optimal Policy?," Working Papers 378, Dipartimento Scienze Economiche, Universita' di Bologna.
    4. Ros, Agustin J, 1999. "Does Ownership or Competition Matter? The Effects of Telecommunications Reform on Network Expansion and Efficiency," Journal of Regulatory Economics, Springer, vol. 15(1), pages 65-92, January.
    5. repec:reg:wpaper:308 is not listed on IDEAS
    6. Perotti, Enrico C, 1995. "Credible Privatization," American Economic Review, American Economic Association, vol. 85(4), pages 847-59, September.
    7. Megginson, William L & Nash, Robert C & van Randenborgh, Matthias, 1994. " The Financial and Operating Performance of Newly Privatized Firms: An International Empirical Analysis," Journal of Finance, American Finance Association, vol. 49(2), pages 403-52, June.
    8. John Vickers & George Yarrow, 1988. "Privatization: An Economic Analysis," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262720116, December.
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    Cited by:
    1. Harald Gruber & Pantelis Koutroumpis, 2013. "Competition enhancing regulation and diffusion of innovation: the case of broadband networks," Journal of Regulatory Economics, Springer, vol. 43(2), pages 168-195, April.
    2. Okamoto, Yoshikazu & Nakamura, Akihiro, 2013. "The influence of local loop unbundling on investment by incumbent telecommunications operators in the OECD member countries," 24th European Regional ITS Conference, Florence 2013 88499, International Telecommunications Society (ITS).
    3. Kongaut, Chatchai & Bohlin, Erik, 2012. "An empirical study of unbundling regulation on broadband adoption in OECD countries: What can we learn for future regulation?," 19th ITS Biennial Conference, Bangkok 2012: Moving Forward with Future Technologies - Opening a Platform for All 72536, International Telecommunications Society (ITS).
    4. Sangwon Lee & Justin S. Brown, 2008. "The Diffusion of Fixed Broadband: An Empirical Analysis," Working Papers 08-19, NET Institute, revised Sep 2008.

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