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Investment in Broadband Infrastructure Under Local Deregulation: Evidence from the U.K. Broadband Market

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  • Nadine Fabritz
  • Oliver Falck

Abstract

This paper investigates telecommunication operator investment in broadband infrastructure after local deregulation of the wholesale broadband access market. Using a panel dataset covering all 5,598 exchange areas in the United Kingdom, we exploit regional differences in deregulation following a 2008 reform. Controlling for initial conditions, first-difference estimates show that local deregulation increases local investment in infrastructure by both the incumbent and competitors.

Suggested Citation

  • Nadine Fabritz & Oliver Falck, 2013. "Investment in Broadband Infrastructure Under Local Deregulation: Evidence from the U.K. Broadband Market," CESifo Working Paper Series 4277, CESifo.
    • Handle: RePEc:ces:ceswps:_4277
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    File URL: https://www.cesifo.org/DocDL/cesifo1_wp4277.pdf
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    References listed on IDEAS

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    1. Kiesewetter, Wolfgang, 2011. "Die Empfehlungspraxis der EU-Kommission im Lichte einer zunehmenden Differenzierung nationaler Besonderheiten in den Wettbewerbsbedingungen unter besonderer Berücksichtigung der Relevante-Märkte-Empfe," WIK Discussion Papers 363, WIK Wissenschaftliches Institut für Infrastruktur und Kommunikationsdienste GmbH.
    2. Mattia Nardotto & Tommaso Valletti & Frank Verboven, 2015. "Unbundling The Incumbent: Evidence From Uk Broadband," Journal of the European Economic Association, European Economic Association, vol. 13(2), pages 330-362, April.
    3. Bourreau, Marc & Dogan, Pinar, 2004. "Service-based vs. facility-based competition in local access networks," Information Economics and Policy, Elsevier, vol. 16(2), pages 287-306, June.
    4. Stumpf, Ulrich, 2010. "Die Abgrenzung subnationaler Märkte als regulatorischer Ansatz," WIK Discussion Papers 334, WIK Wissenschaftliches Institut für Infrastruktur und Kommunikationsdienste GmbH.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Bourreau, Marc & Grzybowski, Lukasz & Hasbi, Maude, 2019. "Unbundling the incumbent and deployment of high-speed internet: Evidence from France," International Journal of Industrial Organization, Elsevier, vol. 67(C).
    2. Joan Calzada & Begoña García-Mariñoso & Jordi Ribé & Rafael Rubio & David Suárez, 2018. "Fiber deployment in Spain," Journal of Regulatory Economics, Springer, vol. 53(3), pages 256-274, June.
    3. repec:ces:ifodic:v:11:y:2014:i:4:p:19105976 is not listed on IDEAS
    4. Vogelsang Ingo, 2013. "The Endgame of Telecommunications Policy? A Survey," Review of Economics, De Gruyter, vol. 64(3), pages 193-270, December.
    5. repec:ces:ifodic:v:11:y:2013:i:2:p:19092427 is not listed on IDEAS
    6. Nadine Fabritz & Oliver Falck, 2014. "Local Deregulation of the Wholesale Broadband Access Market," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 11(4), pages 38-43, 01.
    7. Nadine Fabritz & Oliver Falck, 2014. "Local Deregulation of the Wholesale Broadband Access Market," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 11(04), pages 38-43, January.
    8. Viktória KOCSIS & Paul de BIJL & Rob van der NOLL & Bert TIEBEN, 2015. "Reconsidering ex ante Regulation in the Dutch Electronic Communications Market," Communications & Strategies, IDATE, Com&Strat dept., vol. 1(98), pages 61-83, 2nd quart.
    9. Nadine Fabritz & Oliver Falck, 2013. "Regulation of the Wholesale Broadband Access Market," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 11(2), pages 50-52, 07.
    10. Nadine Fabritz & Oliver Falck, 2013. "Regulation of the Wholesale Broadband Access Market," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 11(02), pages 50-52, July.

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    More about this item

    Keywords

    telecommunication; regulation; infrastructure investment; wholesale broadband access; United Kingdom;
    All these keywords.

    JEL classification:

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

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