Broadband Internet: Open Access and Content Competition
AbstractBroadband “open access” regulation mandates openness of conduits (e.g. upgraded cable television) to service providers (e.g. America Online), but policy discussion often suggests that the ultimate goal is openness to advanced content (streaming video, interactive e-commerce, etc.). We define two forms of regulation, open access and common carriage, and discuss when they are equivalent. We argue that they are quite different in local access broadband. We develop a systems model with free entry and competition in all three industry segments (conduits, service providers, and content) and examine how open access regulation affects the number of firms in each. We confirm the view that an open access requirement can reduce entry of physical conduits, and more surprising we also describe conditions under which it can reduce the amount of content available to consumers.
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Bibliographic InfoPaper provided by Wesleyan University, Department of Economics in its series Wesleyan Economics Working Papers with number 2004-002.
Length: 28 pages
Date of creation: Jun 2004
Date of revision:
open access; broadband;
Find related papers by JEL classification:
- L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
- L5 - Industrial Organization - - Regulation and Industrial Policy
- L9 - Industrial Organization - - Industry Studies: Transportation and Utilities
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