Role of access charges in the migration from copper to FTTH
We consider a horizontally and vertically differentiated duopoly model in order to analyze both intra- and inter-platform competition in an always corvered broadband access market (Copper-Copper, Copper-FTTH and FTTH-FTTH competitions). The model is purely static and does not address dynamic efficiency issues. It shows that the access charges play a significant role in the migration from copper to FTTH and in FTTH investment incentives, provided that consumers are segmented. In FTTH-infrastructure-based competition, investment incentives tend to increase with the copper access charge, while in FTTH-servicebased competition, FTTH investment incentives are much more sensitive to the FTTH access charge than to the copper access charge. A comparison of FTTH-infrastructure-based and FTTH-service-based competition in terms of nationwide FTTH coverage and social welfare indicates that FTTH-infrastructure-based competition leads to a higher level of nationwide FTTH coverage and social welfare.
|Date of creation:||2011|
|Date of revision:|
|Contact details of provider:|| Web page: http://www.its2011taiwan.com/|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- John Vickers & Mark Armstrong, 2006.
"Competitive Nonlinear Pricing and Bundling,"
Economics Series Working Papers
281, University of Oxford, Department of Economics.
- Shaked, Avner & Sutton, John, 1987. "Product Differentiation and Industrial Structure," Journal of Industrial Economics, Wiley Blackwell, vol. 36(2), pages 131-46, December.
- Jeanjean, François, 2010. "Competition through Technical Progress," 21st European Regional ITS Conference, Copenhagen 2010: Telecommunications at new crossroads - Changing value configurations, user roles, and regulation 18, International Telecommunications Society (ITS).
- Bourreau, Marc & Dogan, PInar & Manant, Matthieu, 2010.
"A critical review of the "ladder of investment" approach,"
Elsevier, vol. 34(11), pages 683-696, December.
- M. Bourreau & P. Dogan & M. Manant, . "A critical review of the ladder of investment approach," Working Paper 33654, Harvard University OpenScholar.
- Brito, Duarte & Pereira, Pedro & Vareda, João, 2012. "Incentives to invest and to give access to non-regulated new technologies," Information Economics and Policy, Elsevier, vol. 24(3), pages 197-211.
- Johannes Bauer & Erik Bohlin, 2008. "From Static to Dynamic Regulation," Intereconomics: Review of European Economic Policy, Springer, vol. 43(1), pages 38-50, January.
When requesting a correction, please mention this item's handle: RePEc:zbw:itsp11:52335. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ZBW - German National Library of Economics)
If references are entirely missing, you can add them using this form.