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Competition and Investment in Telecommunications: Evidence from CRTC’s Third-Party ISP Access

Author

Listed:
  • Matthew Ross

    (University of North Carolina at Chapel Hill)

  • Jonathan W. Williams

    (University of North Carolina at Chapel Hill)

Abstract

We study the implications of the Canadian Radio-television and Telecommunications Commission’s (CRTC’s) Third-Party ISP Access (TPIA) regulation, which requires internet-service providers (ISPs) to sell access to their network to third-party providers (TPPs) at wholesale prices. We estimate households’ preferences over internet plans using novel subscription and usage data, and then calibrate a model of entry by TPPs to match the observed market structure. We use those estimates to quantify the regulator’s trade-off: Reducing the wholesale price increases TPP entry and consumer welfare, but decreases ISP revenues and the incentive to invest in networks. We then calculate the optimal wholesale price for different regulatory objectives.

Suggested Citation

  • Matthew Ross & Jonathan W. Williams, 2025. "Competition and Investment in Telecommunications: Evidence from CRTC’s Third-Party ISP Access," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 66(4), pages 469-491, April.
    • Handle: RePEc:kap:revind:v:66:y:2025:i:4:d:10.1007_s11151-025-10018-0
    DOI: 10.1007/s11151-025-10018-0
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    References listed on IDEAS

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    More about this item

    Keywords

    Telecommunications; Broadband; Internet; Investment; Entry;
    All these keywords.

    JEL classification:

    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

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