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Regulation of new markets in telecommunications? Market dynamics and shrinking monopolistic bottlenecks

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  • Blankart, Charles B.
  • Knieps, Günter
  • Zenhäusern, Patrick

Abstract

This paper aims at localizing network-specific market power in new markets. Three kinds of transmission qualities on service markets can be differentiated according to the products provided: narrowband services like PSTN/ISDN or GSM, semi high-speed broadband services like broadband internet access up to 6 Mbps download and VDSL services up to 50 Mbps. As long as, due to the absence of alternative network infrastructures, a monopolistic bottleneck in local infrastructure networks exists the question arises what the remaining bottleneck components are for these different markets. In this paper the shrinking-bottleneck hypothesis will be demonstrated.

Suggested Citation

  • Blankart, Charles B. & Knieps, Günter & Zenhäusern, Patrick, 2007. "Regulation of new markets in telecommunications? Market dynamics and shrinking monopolistic bottlenecks," Discussion Papers 112 [rev.], University of Freiburg, Institute for Transport Economics and Regional Policy.
  • Handle: RePEc:zbw:aluivr:112r
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    References listed on IDEAS

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    1. Knieps, Günter, 2005. "Telecommunications markets in the stranglehold of EU regulation: on the need for a disaggregated regulatory contract," Discussion Papers 109 [rev.], University of Freiburg, Institute for Transport Economics and Regional Policy.
    2. Knieps, Günter, 2006. "The different role of mandatory access in German regulation of railroads and telecommunications," Discussion Papers 104 [rev.], University of Freiburg, Institute for Transport Economics and Regional Policy.
    3. G. Knieps, 2005. "Telecommunications Markets in the Stranglehold of EU Regulation: On the need for a disaggregated regulatory contract," Competition and Regulation in Network Industries, Intersentia, vol. 6(2), pages 75-94, June.
    4. Knieps, Günter, 2006. "Die LKW-Maut und die drei Grundprobleme der Verkehrsinfrastrukturpolitik," Discussion Papers 111, University of Freiburg, Institute for Transport Economics and Regional Policy.
    5. Corsetti, Giancarlo & Devereux, Michael P. & Guiso, Luigi & Hassler, John & Saint-Paul, Gilles & Sinn, Hans-Werner & Sturm, Jan-Egbert & Vives, Xavier, 2010. "The European economy," Munich Reprints in Economics 20104, University of Munich, Department of Economics.
    6. Aberle, Gerd, 2005. "Zukünftige Entwicklung des Güterverkehrs : Sind Sättigungsgrenzen erkennbar?," Discussion Papers 106, University of Freiburg, Institute for Transport Economics and Regional Policy.
    7. Weiß, Hans-Jörg, 2005. "Die Potenziale des Deprival Value-Konzepts zur entscheidungsorientierten Bewertung von Kapital in liberalisierten Netzindustrien," Discussion Papers 108, University of Freiburg, Institute for Transport Economics and Regional Policy.
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    Cited by:

    1. Paul J.J. Welfens & Michael Vogelsang, 2009. "Regulierung und Innovationsdynamik in der EU-Telekommunikationswirtschaft," EIIW Discussion paper disbei165, Universitätsbibliothek Wuppertal, University Library.
    2. Kranz, Johann & Picot, Arnold & Roemer, Benedikt, 2011. "Unlocking the potential of the smart metering technology: How can regulation level the playing-field for new services in smart grids?," 22nd European Regional ITS Conference, Budapest 2011: Innovative ICT Applications - Emerging Regulatory, Economic and Policy Issues 52183, International Telecommunications Society (ITS).
    3. Knieps, Günter & Zenhäusern, Patrick, 2009. "The reform of the European regulatory framework for electronic communications: The unexploited phasing-out potentials," Discussion Papers 128, University of Freiburg, Institute for Transport Economics and Regional Policy.
    4. Knieps, Günter, 2010. "The three criteria test, the essential facilities doctrine and the theory of monopolistic bottlenecks," Discussion Papers 132, University of Freiburg, Institute for Transport Economics and Regional Policy.
    5. Knieps, Günter & Zenhäusern, Patrick, 2008. "The fallacies of network neutrality regulation," Discussion Papers 115 [rev.], University of Freiburg, Institute for Transport Economics and Regional Policy.
    6. Knieps, Günter, 2011. "Market driven network neutrality and the fallacies of Internet traffic quality regulation," Discussion Papers 136, University of Freiburg, Institute for Transport Economics and Regional Policy.
    7. Knieps, Günter & Zenhäusern, Patrick, 2011. "The reform process of the railway sector in Europe: A disaggregated regulatory approach," Discussion Papers 141, University of Freiburg, Institute for Transport Economics and Regional Policy.
    8. Knieps, Günther, 2010. "Regulatory reforms of European network industries and the courts," Discussion Papers 129 [rev.], University of Freiburg, Institute for Transport Economics and Regional Policy.
    9. Knieps, Günter, 2008. "The net neutrality debate and the German communications and competition law," Discussion Papers 120, University of Freiburg, Institute for Transport Economics and Regional Policy.
    10. Knieps, Günter, 2010. "Network neutrality and the evolution of the internet," Discussion Papers 135, University of Freiburg, Institute for Transport Economics and Regional Policy.
    11. Vanberg, Margit A., 2007. "Implications of Network Convergence on Local Access Regulation in the U.S. and the EU," ZEW Discussion Papers 07-039, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    12. Knieps, Günter & Weiß, Hans-Jörg, 2008. "Regulatory agencies and regulatory risk," Discussion Papers 118 [rev.], University of Freiburg, Institute for Transport Economics and Regional Policy.
    13. Stocker, Volker, 2013. "On the weal and woe of internet traffic management in Europe: A critical appraisal from a network economic perspective," 24th European Regional ITS Conference, Florence 2013 88542, International Telecommunications Society (ITS).

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