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Competition, regulation, and broadband access to the internet

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  • Götz, Georg

Abstract

This paper reexamines the effect of the regulatory regime on both penetration and coverage of broadband access to the internet. The framework allows for an evaluation of policy initiatives, guidelines and measures to bridge the digital divide and to promote investment. A welfare analysis compares service-based with facilities-based competition and asks whether and how high-speed access to the internet should be subsidized. Using an approach similar to Valletti, Barros, and Hoernig (2002), the paper highlights the importance of population density for whether firms invest to provide internet access. The analysis reveals a trade-off between coverage and penetration.

Suggested Citation

  • Götz, Georg, 2013. "Competition, regulation, and broadband access to the internet," Telecommunications Policy, Elsevier, vol. 37(11), pages 1095-1109.
    • Handle: RePEc:eee:telpol:v:37:y:2013:i:11:p:1095-1109
    DOI: 10.1016/j.telpol.2013.03.001
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    3. Briglauer Wolfgang & Götz Georg & Schwarz Anton, 2011. "Margin Squeeze in Fixed-Network Telephony Markets -- Competitive or Anticompetitive?," Review of Network Economics, De Gruyter, vol. 10(4), pages 1-21, December.
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    10. 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).
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    Cited by:

    1. Rendon Schneir, Juan & Xiong, Yupeng, 2016. "A cost study of fixed broadband access networks for rural areas," Telecommunications Policy, Elsevier, vol. 40(8), pages 755-773.
    2. Vogelsang Ingo, 2013. "The Endgame of Telecommunications Policy? A Survey," Review of Economics, De Gruyter, vol. 64(3), pages 193-270, December.
    3. Lüdering, Jochen, 2014. "The measurement of internet availability and quality in the context of the discussion on digital divide," Discussion Papers 65, Justus Liebig University Giessen, Center for international Development and Environmental Research (ZEU).
    4. Tselekounis, Markos & Xylogianni, Eirini & Varoutas, Dimitris & Martakos, Drakoulis, 2013. "Geographically differentiated NGA deployment," 24th European Regional ITS Conference, Florence 2013 88533, International Telecommunications Society (ITS).
    5. Neokosmidis, Ioannis & Avaritsiotis, Nikolaos & Ventoura, Zoe & Varoutas, Dimitris, 2015. "Assessment of the gap and (non-)Internet users evolution based on population biology dynamics," Telecommunications Policy, Elsevier, vol. 39(1), pages 14-37.

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    More about this item

    Keywords

    Broadband internet; Penetration; Coverage; Subsidies;
    All these keywords.

    JEL classification:

    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

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