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“Determinants of Broadband Access: Is Platform Competition always the Key Variable to Success?”

  • Xavier Fageda

    ()

    (Faculty of Economics, University of Barcelona)

  • Rafael Rubio

    ()

    (Faculty of Economics, University of Barcelona)

  • Montserrat Termes

    ()

    (Faculty of Economics, University of Barcelona)

Previous studies have identified the rivalry among technological platforms as one of the main driving forces of broadband services penetration. This paper draws on data from the Spanish market between 2005 and 2011 to estimate the main determinants of broadband prices. Controlling for broadband tariffs features and network variables, we examine the impact of the different modes of competition on prices. We find that inter-platform competition has no significant effects over prices, while intra-platform competition is a key driver of the prices charged in the broadband market. Our analysis suggests that the impact of different types of competition on prices is critically affected by the levels of development of the broadband market achieved by the considered country.

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File URL: http://www.ub.edu/irea/working_papers/2013/201303.pdf
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Paper provided by University of Barcelona, Research Institute of Applied Economics in its series IREA Working Papers with number 201303.

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Length: 32 pages
Date of creation: Mar 2013
Date of revision: Mar 2013
Handle: RePEc:ira:wpaper:201303
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