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International Broadband Deployment: The Impact of Unbundling

Author

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  • Garcia-Murillo, Martha

Abstract

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.

Suggested Citation

  • Garcia-Murillo, Martha, 2005. "International Broadband Deployment: The Impact of Unbundling," MPRA Paper 2442, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:2442
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    File URL: https://mpra.ub.uni-muenchen.de/2442/1/MPRA_paper_2442.pdf
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    References listed on IDEAS

    as
    1. Oecd, 2001. "The Development of Broadband Access in the OECD Countries," OECD Digital Economy Papers 56, OECD Publishing.
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    5. John Vickers & George Yarrow, 1988. "Privatization: An Economic Analysis," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262720116, January.
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    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Klein, Gordon & Wendel, Julia, 2014. "The impact of local loop unbundling revisited," 25th European Regional ITS Conference, Brussels 2014 101416, International Telecommunications Society (ITS).
    2. Harald Gruber & Pantelis Koutroumpis, 2013. "Competition enhancing regulation and diffusion of innovation: the case of broadband networks," Journal of Regulatory Economics, Springer, vol. 43(2), pages 168-195, April.
    3. Okamoto, Yoshikazu & Nakamura, Akihiro, 2013. "The influence of local loop unbundling on investment by incumbent telecommunications operators in the OECD member countries," 24th European Regional ITS Conference, Florence 2013 88499, International Telecommunications Society (ITS).
    4. Klein, Gordon J. & Wendel, Julia, 2014. "The impact of local loop and retail unbundling," 20th ITS Biennial Conference, Rio de Janeiro 2014: The Net and the Internet - Emerging Markets and Policies 106845, International Telecommunications Society (ITS).
    5. Gulati, Girish J. & Yates, David J., 2012. "Different paths to universal access: The impact of policy and regulation on broadband diffusion in the developed and developing worlds," Telecommunications Policy, Elsevier, vol. 36(9), pages 749-761.
    6. Lange, Mirjam R. J., 2017. "Tariff diversity and competition policy: Drivers for broadband adoption in the European Union," DICE Discussion Papers 262, University of Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    7. Lee, Sangwon & Marcu, Mircea & Lee, Seonmi, 2011. "An empirical analysis of fixed and mobile broadband diffusion," Information Economics and Policy, Elsevier, vol. 23(3), pages 227-233.
    8. Haucap, Justus & Heimeshoff, Ulrich & Lange, Mirjam R. J., 2014. "The impact of tariff diversity on broadband diffusion: An empirical analysis," 25th European Regional ITS Conference, Brussels 2014 101403, International Telecommunications Society (ITS).
    9. Klein, Gordon J. & Wendel, Julia, 2014. "The impact of local loop and retail unbundling revisited," DICE Discussion Papers 163, University of Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    10. Kongaut, Chatchai & Bohlin, Erik, 2012. "An empirical study of unbundling regulation on broadband adoption in OECD countries: What can we learn for future regulation?," 19th ITS Biennial Conference, Bangkok 2012: Moving Forward with Future Technologies - Opening a Platform for All 72536, International Telecommunications Society (ITS).
    11. Sangwon Lee & Justin S. Brown, 2008. "The Diffusion of Fixed Broadband: An Empirical Analysis," Working Papers 08-19, NET Institute, revised Sep 2008.
    12. Choi, Sujin, 2011. "Facilities to service based competition, not service to facilities based, for broadband penetration: A comparative study between the United States and South Korea," Telecommunications Policy, Elsevier, vol. 35(9), pages 804-817.
    13. Sudtasan, Tatcha, 2015. "Economic determinants of optical fiber share in total broadband connections in OECD countries," 26th European Regional ITS Conference, Madrid 2015 127179, International Telecommunications Society (ITS).
    14. Lin, Mao-Shong & Wu, Feng-Shang, 2013. "Identifying the determinants of broadband adoption by diffusion stage in OECD countries," Telecommunications Policy, Elsevier, vol. 37(4), pages 241-251.
    15. Kongaut, Chatchai & Bohlin, Erik, 2014. "Unbundling and infrastructure competition for broadband adoption: Implications for NGA regulation," Telecommunications Policy, Elsevier, vol. 38(8), pages 760-770.
    16. Ragoobar, Tricia & Whalley, Jason & Harle, David, 2011. "Public and private intervention for next-generation access deployment: Possibilities for three European countries," Telecommunications Policy, Elsevier, vol. 35(9), pages 827-841.
    17. Crandall, Robert W. & Eisenach, Jeffrey A. & Ingraham, Allan T., 2013. "The long-run effects of copper-loop unbundling and the implications for fiber," Telecommunications Policy, Elsevier, vol. 37(4), pages 262-281.
    18. repec:kap:regeco:v:52:y:2017:i:3:d:10.1007_s11149-017-9344-8 is not listed on IDEAS

    More about this item

    Keywords

    broadband; unbundling; competition;

    JEL classification:

    • L43 - Industrial Organization - - Antitrust Issues and Policies - - - Legal Monopolies and Regulation or Deregulation
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

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