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Is Draghi report really wrong about telecoms? (An overview of academic papers on telecom market structure and mergers)

Author

Listed:
  • Ciriani, Stéphane
  • Jeanjean, François

Abstract

The Draghi (2024) Report defines clear policies to restore the competitiveness of the EU through raising investment in innovation. The Report proposes "New EU Telecom Act" to update merger control through considering both static and dynamic effects rather than just static market shares or Herfindahl Index (HHI). Some authors have argued that Draghi's view on the consolidation's effects on investment is flawed. This article provides a review of the literature on the impact of mergers and mobile market concentration on price, investment, and quality. It also provides evidence that the evolution of mobile markets during the two last decades have changed the ways that mergers affect competition. It provides policy makers with relevant insights to form their views on the desirability of consolidation in the European wireless markets, in a context where the need for a new approach to mergers in the telecom sector has been outlined in the Draghi's report.

Suggested Citation

  • Ciriani, Stéphane & Jeanjean, François, 2025. "Is Draghi report really wrong about telecoms? (An overview of academic papers on telecom market structure and mergers)," 33rd European Regional ITS Conference, Edinburgh, 2025: Digital innovation and transformation in uncertain times 331262, International Telecommunications Society (ITS).
    • Handle: RePEc:zbw:itse25:331262
    as

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    File URL: https://www.econstor.eu/bitstream/10419/331262/1/ITS-E-2025-17.pdf
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    References listed on IDEAS

    as
    1. Houngbonon, Georges Vivien & Jeanjean, François, 2016. "What level of competition intensity maximises investment in the wireless industry?," Telecommunications Policy, Elsevier, vol. 40(8), pages 774-790.
    2. Stéphane Ciriani & François Jeanjean, 2020. "Competition, Technological Change and Productivity Gains: A Sectoral Analysis," Intereconomics: Review of European Economic Policy, Springer;ZBW - Leibniz Information Centre for Economics;Centre for European Policy Studies (CEPS), vol. 55(3), pages 192-198, May.
    3. François Jeanjean, 2021. "Impact of Technical Progress on the Relationship Between Competition and Investment," Journal of Industry, Competition and Trade, Springer, vol. 21(1), pages 81-101, March.
    4. Georges Vivien Houngbonon & François Jeanjean, 2016. "What level of competition intensity maximises investment in the wireless industry?," PSE-Ecole d'économie de Paris (Postprint) halshs-01510421, HAL.
    5. Georges Vivien Houngbonon & François Jeanjean, 2016. "What level of competition intensity maximises investment in the wireless industry?," Post-Print halshs-01510421, HAL.
    6. Georges V. Houngbonon & Francois Jeanjean, 2019. "Investment and market power in mobile mergers," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 46(1), pages 65-81, March.
    7. Jeanjean, François & Houngbonon, Georges Vivien, 2017. "Market structure and investment in the mobile industry," Information Economics and Policy, Elsevier, vol. 38(C), pages 12-22.
    8. Aimene, Louise & Jeanjean, François & Liang, Julienne, 2021. "Impact of mobile operator consolidation on unit prices," Telecommunications Policy, Elsevier, vol. 45(4).
    9. Jonathan T. Elliott & Georges V. Houngbonon & Marc Ivaldi & Paul T. Scott, 2025. "Market Structure, Investment, and Technical Efficiencies in Mobile Telecommunications," Journal of Political Economy, University of Chicago Press, vol. 133(5), pages 1401-1459.
    10. François Jeanjean & Georges Vivien Houngbonon, 2017. "Market structure and investment in the mobile industry," PSE-Ecole d'économie de Paris (Postprint) halshs-01510424, HAL.
    11. Christos Genakos & Tommaso Valletti & Frank Verboven, 2018. "Evaluating market consolidation in mobile communications," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 33(93), pages 45-100.
    12. François Jeanjean & Georges Vivien Houngbonon, 2017. "Market structure and investment in the mobile industry," Post-Print halshs-01510424, HAL.
    13. François Jeanjean, 2015. "What causes the megabyte price drop in the mobile industry?," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 42(3), pages 277-296, September.
    14. Stéphane Ciriani & François Jeanjean, 2022. "Competition, technological change and productivity gains: a European sectoral analysis," Economics Bulletin, AccessEcon, vol. 42(2), pages 927-946.
    Full references (including those not matched with items on IDEAS)

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    Keywords

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    JEL classification:

    • D25 - Microeconomics - - Production and Organizations - - - Intertemporal Firm Choice: Investment, Capacity, and Financing
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
    • L40 - Industrial Organization - - Antitrust Issues and Policies - - - General
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L63 - Industrial Organization - - Industry Studies: Manufacturing - - - Microelectronics; Computers; Communications Equipment

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