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Wholesale market definition in telecommunications: The issue of wholesale broadband access

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  • Schwarz, Anton

Abstract

The scope of a wholesale market may, in addition to demand- and supply-side substitution at the wholesale level, also be determined by substitution patterns at the retail level. Considering wholesale broadband access markets, it is argued that each of these forces can be strong enough to render a 5-10% price increase by a hypothetical monopolist at the wholesale level unprofitable and thus may lead to a wider wholesale market definition including, for example, cable networks in addition to DSL. Based on the theory of derived demand elasticities the paper discusses under which circumstances this could be the case. The position of the European Commission and the practice of national regulatory authorities are then reviewed in light of these arguments.

Suggested Citation

  • Schwarz, Anton, 2007. "Wholesale market definition in telecommunications: The issue of wholesale broadband access," Telecommunications Policy, Elsevier, vol. 31(5), pages 251-264, June.
  • Handle: RePEc:eee:telpol:v:31:y:2007:i:5:p:251-264
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    Citations

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    Cited by:

    1. Calzada, Joan & Martínez-Santos, Fernando, 2014. "Broadband prices in the European Union: Competition and commercial strategies," Information Economics and Policy, Elsevier, vol. 27(C), pages 24-38.
    2. Srinuan, Pratompong & Srinuan, Chalita & Bohlin, Erik, 2012. "Fixed and mobile broadband substitution in Sweden," Telecommunications Policy, Elsevier, vol. 36(3), pages 237-251.
    3. Francis Bloch & Axel Gautier, 2017. "Strategic bypass deterrence," Journal of Regulatory Economics, Springer, vol. 52(2), pages 189-210, October.
    4. Silva, Rita Filipe & Proença, Isabel & Vareda, João, 2013. "Dynamics of broadbands demand: Substitution or complementarity between fixed and mobile technologies? An application to the Portuguese case," 24th European Regional ITS Conference, Florence 2013 88541, International Telecommunications Society (ITS).
    5. Hou, Liyang & Valcke, Peggy & Stevens, David, 2013. "Can open internet access be imposed upon European CATV networks?," Telecommunications Policy, Elsevier, vol. 37(10), pages 970-980.
    6. Lucidi, Stefano, 2017. "Analyse marktstruktureller Kriterien und Diskussion regulatorischer Handlungsoptionen bei engen Oligopolen," WIK Discussion Papers 419, WIK Wissenschaftliches Institut für Infrastruktur und Kommunikationsdienste GmbH.

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