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Some Investment and Competition Implications of the Ownership Structure of Overlapping Networks

Author

Listed:
  • Duarte Brito

    (Universidade Nova de Lisboa)

  • Pedro Pereira

    (Autoridade da Concorrência)

Abstract

In this article we discuss the role of cable television networks and their ownership structure, in promoting competition in the local access market. An upgraded cable network can o¤er telecommunication services, and therefore can compete with the public switched telephone network. First, we show that the joint ownership of a local telephone network and a cable network, compared with separate ownership, may increase or decrease incentives to invest in upgrading the cable television network. Second, we argue that separate ownership of the two networks is important to promote competition in local access. Third, we perform the welfare analysis of the investment decision and the ownership structure.

Suggested Citation

  • Duarte Brito & Pedro Pereira, 2006. "Some Investment and Competition Implications of the Ownership Structure of Overlapping Networks," Working Papers 11, Portuguese Competition Authority.
    • Handle: RePEc:pca:wpaper:11
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    File URL: http://www.concorrencia.pt/download/WP11__IUCNv25_v12.pdf
    File Function: First version, 2006
    Download Restriction: no
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    More about this item

    Keywords

    Cable Networks; Local Access; Competition;
    All these keywords.

    JEL classification:

    • L43 - Industrial Organization - - Antitrust Issues and Policies - - - Legal Monopolies and Regulation or Deregulation
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

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