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Network Investment, Access and Competition

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  • Inderst, Roman
  • Peitz, Martin

Abstract

We analyze the role of different contract types and access regulation on innovation and competition in telecommunications in the context of Next Generation Access Networks. Within a standard duopoly model, we show that ex-post access contracts lead less often to the duplication of investment, but to a wider roll-out compared to a market in which such contracts cannot be offered. In comparison to such ex-post contracts, ex-ante contracts lead to an even wider roll-out, but to a less frequent duplication of investments. Ex-ante contracts in particular, but also ex-post contracts, can be used to dampen competition.

Suggested Citation

  • Inderst, Roman & Peitz, Martin, 2012. "Network Investment, Access and Competition," MPRA Paper 53842, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:53842
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Telecommunication; NGN; Access surcharge; Investment; Innovation; Contracts between network operators;
    All these keywords.

    JEL classification:

    • D86 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Economics of Contract Law

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