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Regulating Vertical Integration in Broadband: Open Access versus Common Carriage

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  • Hogendorn Christiaan

    (Economics Department, Wesleyan University)

Abstract

Broadband Internet involves two vertical relationships: the Internet Service Provider (ISP) requires both a physical conduit (e.g. telephone or cable television lines) and content. The ISP-conduit relationship has been subject to controversial unbundling regulation, but no such rules apply to the ISP-content relationship. We argue that regardless of whether ISPs are vertically integrated with conduits, they have incentives to create vertical restrictions on content. Foreclosure of ISPs by conduits may not increase and indeed could reduce these restrictions. Thus, telephone common carriage and Internet application neutrality may both be at odds with unbundling and "open access" policies.

Suggested Citation

  • Hogendorn Christiaan, 2005. "Regulating Vertical Integration in Broadband: Open Access versus Common Carriage," Review of Network Economics, De Gruyter, vol. 4(1), pages 1-14, March.
    • Handle: RePEc:bpj:rneart:v:4:y:2005:i:1:n:3
    DOI: 10.2202/1446-9022.1064
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    Cited by:

    1. Christiaan Hogendorn & Brett Frischmann, 2017. "Infrastructure and General Purpose Technologies: A Technology Flow Framework," Wesleyan Economics Working Papers 2017-001, Wesleyan University, Department of Economics.
    2. Christiaan Hogendorn & Brett Frischmann, 2020. "Infrastructure and general purpose technologies: a technology flow framework," European Journal of Law and Economics, Springer, vol. 50(3), pages 469-488, December.
    3. Meyer, Lena & Neurauter, Sebastian & Bohne, Michael, 2008. "Gesetzgebungsbedarf für Wettbewerb und Regulierung in der globalen Internetökonomie?," Working Papers 57, University of Münster, Competence Center Internet Economy and Hybrid Systems, European Research Center for Information Systems (ERCIS).
    4. Christiaan Hogendorn, 2012. "Spillovers and Network Neutrality," Chapters, in: Gerald R. Faulhaber & Gary Madden & Jeffrey Petchey (ed.), Regulation and the Performance of Communication and Information Networks, chapter 8, Edward Elgar Publishing.
    5. Shane Greenstein, 2006. "Innovation and the Evolution of Market Structure for Internet Access in the United States," Discussion Papers 05-018, Stanford Institute for Economic Policy Research.
    6. Paul J.J Welfens, 2010. "Toward a New Concept of Universal Services: The Role of Digital Mobile Services and Network Neutrality," EIIW Discussion paper disbei177, Universitätsbibliothek Wuppertal, University Library.
    7. Greenstein Shane, 2012. "Concentration in Internet Access and Entrepreneurial Truncation of Innovation," Capitalism and Society, De Gruyter, vol. 7(1), pages 1-33, November.

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