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La boucle locale radio comme vecteur d'entrée dans les télécommunications

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  • Marc Bourreau

Abstract

[fre] The local loop — the access network which connects customers to the core network — remains the last bastion of historical telecommunication operators. Even though competition in the local loop is limited today, some new access technologies may enable new operators to enter the local loop. Among these technologies, the wireless local loop seems to be the most promising. In this article, we try to evaluate whether it could viable for a new entrant to enter the local loop by building wireless local loops. We find that a wireless local loop entry strategy is characterized by (a) a strong technical progress, (b) a high level of uncertainty regarding the technology and the demand and (c) relatively high switching costs on the customer side. Even though the wireless local loop might not be viable in the short run, it will quickly become a strong means of entry for new operators.

Suggested Citation

  • Marc Bourreau, 2001. "La boucle locale radio comme vecteur d'entrée dans les télécommunications," Revue Française d'Économie, Programme National Persée, vol. 15(4), pages 111-143.
    • Handle: RePEc:prs:rfreco:rfeco_0769-0479_2001_num_15_4_1504
    DOI: 10.3406/rfeco.2001.1504
    Note: DOI:10.3406/rfeco.2001.1504
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    References listed on IDEAS

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    1. Paul Klemperer, 1995. "Competition when Consumers have Switching Costs: An Overview with Applications to Industrial Organization, Macroeconomics, and International Trade," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 62(4), pages 515-539.
    2. Trinkwon, David, 1997. "Technology of fixed wireless access," Telecommunications Policy, Elsevier, vol. 21(5), pages 437-450, June.
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    Cited by:

    1. Sami ALI Debbichi, 2015. "Market Power and competition effect on Interconnection fees: Econometric Estimation of the Mobile Tunisian Market," Economics Bulletin, AccessEcon, vol. 35(2), pages 1227-1236.

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