The Effect of Access Regulation on Broadbnd Deployment
This paper quetions whether or not mandatory unbundling delayed DSL deployment by BellSouth. By exploiting a law change in Kentucky and variation in access prices across markets, I find that deregulation in Kentucky triggered deployment, but no evidence that access prices affected deployment pace. An upper bound on the welfare loss due to late deployment in rural markets is $21 million. The findings are consistent with a positive effect of deregulation on the profitability of upgrades, but can also result from a strategic delay which is part of the bargaining between the firm and the regulator.
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- 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.
- Augereau, Angelique & Greenstein, Shane, 2001. "The need for speed in emerging communications markets: upgrades to advanced technology at Internet Service Providers," International Journal of Industrial Organization, Elsevier, vol. 19(7), pages 1085-1102, July.
- Robert S. Pindyck, 2005. "Pricing Capital Under Mandatory Unbundling and Facilities Sharing," NBER Working Papers 11225, National Bureau of Economic Research, Inc.
- James E. Prieger, 2003.
"The Supply Side of the Digital Divide: Is There Equal Availability in the Broadband Internet Access Market?,"
Western Economic Association International, vol. 41(2), pages 346-363, April.
- James E. Prieger, 2003. "The Supply Side of the Digital Divide: Is There Equal Availability in the Broadband Internet Access Market?," Working Papers 25, University of California, Davis, Department of Economics.
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