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An Economist's Guide to Local Loop Unbundling

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  • Baranes, Edmond
  • Bourreau, Marc

Abstract

This guide provides a critical review of the economics literature on the desirability and the effects of unbundling the local loop. Firstly, we discuss recent contributions, which aim to quantify the effect of unbundling regulations on the development of broadband services. Secondly, we review the literature on the potential impact of unbundling on investment and innovation incentives. Finally, we conclude this paper by offering some suggestions for further research.

Suggested Citation

  • Baranes, Edmond & Bourreau, Marc, 2005. "An Economist's Guide to Local Loop Unbundling," MPRA Paper 2510, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:2510
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    File URL: https://mpra.ub.uni-muenchen.de/2510/1/MPRA_paper_2510.pdf
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    References listed on IDEAS

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    1. Gillett, Sharon E. & Lehr, William H. & Osorio, Carlos, 0. "Local government broadband initiatives," Telecommunications Policy, Elsevier, vol. 28(7-8), pages 537-558, August.
    2. de Bijl, Paul W.J. & Peitz, Martin, 2005. "Local Loop Unbundling in Europe: Experience, Prospects and Policy Challenges," MPRA Paper 2441, University Library of Munich, Germany.
    3. Walter Distaso & Paolo Lupi, 2004. "Platform Competition and Broadband Adoption in Europe: Theory and Empirical Evidence from the European Union," Industrial Organization 0403005, EconWPA.
    4. Madden, Gary & Savage, Scott J. & Coble-Neal, Grant, 1999. "Subscriber churn in the Australian ISP market," Information Economics and Policy, Elsevier, vol. 11(2), pages 195-207, July.
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    6. Howell, Bronwyn, 2002. "Broadband Uptake and Infrastructure Regulation: Evidence from the OECD Countries," Working Paper Series 3899, Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation.
    7. Crandall Robert W. & Ingraham Allan T & Singer Hal J, 2004. "Do Unbundling Policies Discourage CLEC Facilities-Based Investment," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 4(1), pages 1-25, June.
    8. Gary Madden & Michael Simpson, 1997. "Residential broadband subscription demand: an econometric analysis of Australian choice experiment data," Applied Economics, Taylor & Francis Journals, vol. 29(8), pages 1073-1078.
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    10. Madden, Gary & Savage, Scott & Simpson, Michael, 1996. "Information Inequality and Broadband Network Access: An Analysis of Australian Household Data," Industrial and Corporate Change, Oxford University Press, vol. 5(4), pages 1049-1066.
    11. Bauer, Johannes M., 2005. "Unbundling Policy in the United States Players, Outcomes and Effects," MPRA Paper 2455, University Library of Munich, Germany.
    12. David Sappington & J. Sidak, 2003. "Incentives for Anticompetitive Behavior by Public Enterprises," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 22(3), pages 183-206, May.
    13. Fabio Maria Manenti, 2005. "Platform Competition and Broadband Adoption: Theory and Empirical Evidence from the European Union," Economics Bulletin, AccessEcon, vol. 28(1), pages 1.
    14. Felix Höffler, 2005. "Cost and Benefits from Infrastructure Competition. Estimating Welfare Effects from Broadband Access Competition," Discussion Paper Series of the Max Planck Institute for Research on Collective Goods 2005_1, Max Planck Institute for Research on Collective Goods, revised Jun 2005.
    15. Kahn, Alfred E. & Tardiff, Timothy J. & Weisman, Dennis L., 1999. "The Telecommunications Act at three years: an economic evaluation of its implementation by the Federal Communications Commission," Information Economics and Policy, Elsevier, vol. 11(4), pages 319-365, December.
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    17. Distaso, Walter & Lupi, Paolo & Manenti, Fabio M., 2006. "Platform competition and broadband uptake: Theory and empirical evidence from the European union," Information Economics and Policy, Elsevier, vol. 18(1), pages 87-106, March.
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    Citations

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    Cited by:

    1. 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).
    2. 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).
    3. Eli M. NOAM, 2011. "Beyond Net Neutrality: End-User Sovereignty," Communications & Strategies, IDATE, Com&Strat dept., vol. 1(84), pages 153-173, 4th quart.
    4. Madden, Gary & Bohlin, Erik & Ahmad, Hasnat & Tran, Thien, 2013. "OECD unbundled local loop pricing," Telecommunications Policy, Elsevier, vol. 37(11), pages 1033-1045.
    5. Emanuele BACCHIOCCHI & Massimo FLORIO & Marco GAMBARO, 2008. "Telecom prices, regulatory reforms, and consumers’ satisfaction: evidence for 15 EU countries," Departmental Working Papers 2008-10, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano, revised 20 Jun 2008.
    6. Pio Baake & Brigitte Preißl (Eds.). Johannes M. Bauer & Per Björstedt & Elena Gallo & Anders Henten & Sven Lindmark & Martijn Poel & Enzo Pontarollo & Knud Erik Skouby & Jason Whalley, 2006. "Local Loop Unbundling and Bitstream Access: Regulatory Practice in Europe and the U.S," DIW Berlin: Politikberatung kompakt, DIW Berlin, German Institute for Economic Research, volume 20, number pbk20.

    More about this item

    Keywords

    Unbundling; broadband diffusion; investment and innovation;

    JEL classification:

    • L95 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Gas Utilities; Pipelines; Water Utilities
    • L42 - Industrial Organization - - Antitrust Issues and Policies - - - Vertical Restraints; Resale Price Maintenance; Quantity Discounts
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation

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