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How access pricing and entry interact

Author

Listed:
  • Cave, Martin
  • Vogelsang, Ingo

Abstract

The paper reviews the preceeding theoretical and econometric analysis, and the case study of the Netherlands. It suggests that entrants' strategies will be influenced by the level of access prices and on the degree of investment in infrastructure which entrants have to make to be eligible to purchase interconnection services at wholesale prices. Entrants will typically invest first in replicable assets, and then progress to less replicable ones--although this will also depend upon their initial endowments. This suggests that entry may best be encouraged initially by low access prices, with those prices possibly increasing over time as assets are replicated.

Suggested Citation

  • Cave, Martin & Vogelsang, Ingo, 0. "How access pricing and entry interact," Telecommunications Policy, Elsevier, vol. 27(10-11), pages 717-727, November.
  • Handle: RePEc:eee:telpol:v:27:y::i:10-11:p:717-727
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    Citations

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    Cited by:

    1. Kenneth Fjell & Øystein Foros & Debashis Pal, 2010. "Endogenous Average Cost Based Access Pricing," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 36(2), pages 149-162, March.
    2. Knieps, Günter & Zenhäusern, Patrick, 2009. "Stepping stones and access holidays: The fallacies of regulatory micro-management," Discussion Papers 123, University of Freiburg, Institute for Transport Economics and Regional Policy.
    3. Garrone, Paola & Zaccagnino, Michele, 2011. "The relationship between local loop unbundling and the deployment of alternative broadband networks: An empirical analysis," 22nd European Regional ITS Conference, Budapest 2011: Innovative ICT Applications - Emerging Regulatory, Economic and Policy Issues 52217, International Telecommunications Society (ITS).
    4. Bender, Christian M. & Götz, Georg, 2010. "Coexistence of service- and facility-based competition: The relevance of access prices for "make-or-buy"-decisions," 21st European Regional ITS Conference, Copenhagen 2010: Telecommunications at new crossroads - Changing value configurations, user roles, and regulation 3, International Telecommunications Society (ITS).
    5. Kranz, Johann & Picot, Arnold & Roemer, Benedikt, 2011. "Unlocking the potential of the smart metering technology: How can regulation level the playing-field for new services in smart grids?," 22nd European Regional ITS Conference, Budapest 2011: Innovative ICT Applications - Emerging Regulatory, Economic and Policy Issues 52183, International Telecommunications Society (ITS).
    6. Piatek, Stanislaw, 2008. "Investment and Regulation in Telecommunications," MPRA Paper 23995, University Library of Munich, Germany.
    7. Christian Wey & Pio Baake & Ulrich Kamecke, 2005. "Neue Märkte unter dem neuen Rechtsrahmen: Endbericht ; Forschungsprojekt im Auftrag der Deutsche Telekom AG," DIW Berlin: Politikberatung kompakt, DIW Berlin, German Institute for Economic Research, volume 6, number pbk6.
    8. Ingo Vogelsang, 2012. "Incentive Regulation, Investments and Technological Change," Chapters,in: Regulation and the Performance of Communication and Information Networks, chapter 4 Edward Elgar Publishing.
    9. Markos Tselekounis & Dimitris Varoutas & Drakoulis Martakos, 2012. "On the social optimality of make-or-buy decisions," Journal of Regulatory Economics, Springer, vol. 41(2), pages 238-268, April.
    10. Baake, Pio & Kamecke, Ulrich & Wey, Christian, 2005. "A Regulatory Framework for New and Emerging Markets," MPRA Paper 2518, University Library of Munich, Germany.
    11. Manenti, Fabio M. & Scialà, Antonio, 2013. "Access regulation, entry and investments in telecommunications," Telecommunications Policy, Elsevier, vol. 37(6), pages 450-468.
    12. Pio Baake & Brigitte Preißl (Eds.). Johannes M. Bauer & Per Björstedt & Elena Gallo & Anders Henten & Sven Lindmark & Martijn Poel & Enzo Pontarollo & Knud Erik Skouby & Jason Whalley, 2006. "Local Loop Unbundling and Bitstream Access: Regulatory Practice in Europe and the U.S," DIW Berlin: Politikberatung kompakt, DIW Berlin, German Institute for Economic Research, volume 20, number pbk20.
    13. Peter Heinacher & Brigitte Preissl, 2006. "Fibre-optic Networks: On Investment, Regulation and Competition," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 4(3), pages 22-28, October.

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