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International Broadband Deployment: The Impact of Unbundling

  • Garcia-Murillo, Martha
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    This paper shows that unbundling an incumbent's infrastructure only results in a substantial improvement in broadband deployment for middle-income countries, but not for their high income counterparts. Our statistical analysis of approximately 100 countries showed that GDP per capita, population, competition and unbundling are all factors that can lead a carrier to provide broadband services in a country. The logit models show that unbundling has a significant positive impact on the availability of broadband services. The OLS analysis indicates that GDP per capita, population size, price, competition, the percentage of dial-up Internet users, and hosts all have positive effects on the number of subscribers. One implication of these results is that if a policy is to be implemented to promote broadband, it should either foster competition through unbundling and/or reduced prices. Efforts to develop local content can also improve broadband adoption.

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    File URL: https://mpra.ub.uni-muenchen.de/2442/1/MPRA_paper_2442.pdf
    File Function: original version
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    Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 2442.

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    Date of creation: Mar 2005
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    Handle: RePEc:pra:mprapa:2442
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    Web page: https://mpra.ub.uni-muenchen.de

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    1. Shleifer, Andrei & Vishny, Robert W, 1994. "Politicians and Firms," The Quarterly Journal of Economics, MIT Press, vol. 109(4), pages 995-1025, November.
    2. Megginson, William L & Nash, Robert C & van Randenborgh, Matthias, 1994. " The Financial and Operating Performance of Newly Privatized Firms: An International Empirical Analysis," Journal of Finance, American Finance Association, vol. 49(2), pages 403-52, June.
    3. Oecd, 2001. "The Development of Broadband Access in the OECD Countries," OECD Digital Economy Papers 56, OECD Publishing.
    4. John Vickers & George Yarrow, 1988. "Privatization: An Economic Analysis," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262720116, June.
    5. Enrico Santarelli, 2002. "Is subsidizing entry an optimal policy?," Industrial and Corporate Change, Oxford University Press, vol. 11(1), pages 39-52, February.
    6. Perotti, Enrico C, 1995. "Credible Privatization," American Economic Review, American Economic Association, vol. 85(4), pages 847-59, September.
    7. Ros, Agustin J, 1999. "Does Ownership or Competition Matter? The Effects of Telecommunications Reform on Network Expansion and Efficiency," Journal of Regulatory Economics, Springer, vol. 15(1), pages 65-92, January.
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