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Geographic segmentation of broadband markets: appropriate differentiation or risk to a single EU market?

Author

Listed:
  • George HOUPIS

    (Frontier Economics, Europe)

  • Júlia LUCENA BETRIU

    (Frontier Economics, Europe)

  • Juana SANTAMARIA

    (Frontier Economics, Europe)

Abstract

Until recently, wholesale broadband markets have usually been considered to have a national scope, with some exceptions associated with the existence of different incumbent fixed operators in different geographic areas, like the Hull area in the UK. The development of local loop unbundling and the deployment of alternative infrastructures to provide telecommunication services, such as cable, have changed the competitive landscape in certain areas. This has resulted in a higher degree of heterogeneity in the competitive conditions observed in wholesale broadband markets across geographic areas, which has led some regulators, like Ofcom and ANACOM, to define sub-national geographic markets, imposing obligations only in those markets were significant market power operators have been identified. In other cases, like in Austria, the regulator has opted for defining a single national market but imposing differentiated remedies to take account of the heterogeneity in the competitive conditions observed in different geographic areas. Based upon this recent experience in the context of wholesale broadband markets, this paper aims to provide insights on the main issues associated with the implementation of the analysis of geographic markets and its consistency with the European Commission's objective of developing a single EU telecommunications market.

Suggested Citation

  • George HOUPIS & Júlia LUCENA BETRIU & Juana SANTAMARIA, 2011. "Geographic segmentation of broadband markets: appropriate differentiation or risk to a single EU market?," Communications & Strategies, IDATE, Com&Strat dept., vol. 1(82), pages 105-126, 2nd quart.
  • Handle: RePEc:idt:journl:cs8205
    as

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    File URL: http://repec.idate.org/RePEc/idt/journl/CS8205/CS82_HOUPIS_et_al.pdf
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    References listed on IDEAS

    as
    1. Valletti, Tommaso M & Hoernig, Steffen & Barros, Pedro P, 2002. "Universal Service and Entry: The Role of Uniform Pricing and Coverage Constraints," Journal of Regulatory Economics, Springer, vol. 21(2), pages 169-190, March.
    2. Hoernig, Steffen, 2011. "Asymmetric Broadband Wholesale Regulation," CEPR Discussion Papers 8399, C.E.P.R. Discussion Papers.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    geographic markets; Next Generation Networks; market definition; remedies.;

    JEL classification:

    • L50 - Industrial Organization - - Regulation and Industrial Policy - - - General
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

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