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Interconnection of Cable Networks: A Regulation Proposal for Broadband Internet Services

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Abstract

In this article a brief revision of the European and Portuguese Regulatory frameworks is made, especially in terms of the interconnection of broadband internet services that are offered by cable operators. A formalization with two cable networks is presented, in order to obtain a benchmark for symmetric networks, and two scenarios: collusion and regulated market; are developed. This justifies the implementation of regulatory policies, with the establishment of caps for the interconnection tariffs, in order to assure a larger penetration rate of the broadband internet services and a bigger total welfare.

Suggested Citation

  • Leitão, João, 2006. "Interconnection of Cable Networks: A Regulation Proposal for Broadband Internet Services," MPRA Paper 487, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:487
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    File URL: https://mpra.ub.uni-muenchen.de/487/1/MPRA_paper_487.pdf
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    References listed on IDEAS

    as
    1. Laffont, Jean-Jacques & Tirole, Jean, 1994. "Access pricing and competition," European Economic Review, Elsevier, vol. 38(9), pages 1673-1710, December.
    2. Carlos Osório & João Leitão, 2001. "O Papel do Goodwill na Determinação do Nível Óptimo de Publicidade," Brazilian Electronic Journal of Economics, Department of Economics, Universidade Federal de Pernambuco, vol. 4(1), September.
    3. Avner Shaked & John Sutton, 1982. "Relaxing Price Competition Through Product Differentiation," Review of Economic Studies, Oxford University Press, vol. 49(1), pages 3-13.
    4. Shy,Oz, 2001. "The Economics of Network Industries," Cambridge Books, Cambridge University Press, number 9780521805001.
    5. Michael Carter & Julian Wright, 2003. "Asymmetric Network Interconnection," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 22(1), pages 27-46, February.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Regulation; Tariffs of Interconnection; Goodwill;

    JEL classification:

    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General

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