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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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    JEL classification:

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

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