IDEAS home Printed from https://ideas.repec.org/p/hal/journl/hal-02297304.html

Unbundling the incumbent and deployment of high-speed internet: Evidence from France

Author

Listed:
  • Marc Bourreau

    (SES - Département Sciences Economiques et Sociales - Télécom Paris - IMT - Institut Mines-Télécom [Paris] - IP Paris - Institut Polytechnique de Paris, ECOGE - Economie Gestion - I3 SES - Institut interdisciplinaire de l’innovation de Telecom Paris - Télécom Paris - IMT - Institut Mines-Télécom [Paris] - IP Paris - Institut Polytechnique de Paris - I3 - Institut interdisciplinaire de l’innovation - CNRS - Centre National de la Recherche Scientifique)

  • Lukasz Grzybowski

    (Télécom ParisTech)

  • Maude Hasbi

    (I3 SES - Institut interdisciplinaire de l’innovation de Telecom Paris - Télécom Paris - IMT - Institut Mines-Télécom [Paris] - IP Paris - Institut Polytechnique de Paris - I3 - Institut interdisciplinaire de l’innovation - CNRS - Centre National de la Recherche Scientifique)

Abstract

In this paper, we study the impact of competition on the legacy copper network on the deployment of high-speed broadband. We first develop a theoretical model, which shows that the relation between the number of competitors and investment in a quality-improving technology can be positive if the quality of the new technology is high enough, and is negative otherwise. We test these theoretical predictions using data on broadband deployments in France in more than 36,000 local municipalities. First, using panel data over the period 2011-2014, we estimate a model of entry into local markets by alternative operators using local loop unbundling (LLU). Second, using cross-sectional data for the year 2015, we estimate how the number of LLU entrants impacts the deployment of high-speed broadband, controlling for the endogeneity of LLU entry. We find that a higher number of LLU competitors implies lower incentives to deploy and expand coverage of fast broadband, with speed of 30Mbps or more. By contrast, a higher number of local competitors has a positive effect on the incentive to deploy super-fast broadband, with speed of 100Mbps or more, but has no significant effect on the incentive to expand coverage of this technology.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Marc Bourreau & Lukasz Grzybowski & Maude Hasbi, 2019. "Unbundling the incumbent and deployment of high-speed internet: Evidence from France," Post-Print hal-02297304, HAL.
    • Handle: RePEc:hal:journl:hal-02297304
    DOI: 10.1016/j.ijindorg.2019.102526
    Note: View the original document on HAL open archive server: https://telecom-paris.hal.science/hal-02297304v1
    as

    Download full text from publisher

    File URL: https://telecom-paris.hal.science/hal-02297304v1/document
    Download Restriction: no
    File URL: https://libkey.io/10.1016/j.ijindorg.2019.102526?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Lukasz Grzybowski & Marc Bourreau & Angela Munoz-Acevedo, 2024. "The Efficiency of State Aid for the Deployment of High-Speed Broadband: Evidence from the French Market," ERSA Working Paper Series, Economic Research Southern Africa, vol. 0.
    2. Kyle Wilson, 2025. "Local Competition, Multimarket Contact, and Product Quality: Evidence From Internet Service Provision," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 66(4), pages 439-467, April.
    3. Bourreau, Marc & Grzybowski, Lukasz & Muñoz-Acevedo, Ángela, 2026. "State aid for broadband and crowding out of private investment: Evidence from the French market," International Journal of Industrial Organization, Elsevier, vol. 104(C).

    More about this item

    JEL classification:

    • K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:journl:hal-02297304. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.