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Platform Competition and Broadband Adoption: Theory and Empirical Evidence from the European Union

Author

Listed:
  • Fabio Maria Manenti

    (Dept. of Economics - University of Padua)

Abstract

Broadband access provides users with high speed connectivity to the Internet. BB is seen as the way for users to exploit the potentials of new applications. This has generated a policy debate on how to stimulate adoption of broadband technology. One of the most disputed issues is about competition policies: these may be intended to promote competition in the Digital Subsrcriber Line segment of the market (intra-platform), or to stimulate entry into the market for alternative platforms such as cable access or fiber optics (inter-platform). Using a model of differentiated oligopoly, our paper studies the effect of inter and intra platform competition on the diffusion of broadband access. The implications of the model are tested using data from 14 European Countries. The evidence confirms the results of the model and indicates that while inter-platform competition drives BB adoption, competition in the market for DSL services does not play a significant role.

Suggested Citation

  • Fabio Maria Manenti, 2005. "Platform Competition and Broadband Adoption: Theory and Empirical Evidence from the European Union," Economics Bulletin, AccessEcon, vol. 28(1), pages 1.
    • Handle: RePEc:ebl:ecbull:eb-05aa0001
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    File URL: http://www.accessecon.com/pubs/EB/2005/Volume28/EB-05AA0001A.pdf
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    Citations

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    Cited by:

    1. Shinohar, Sobee & Akematsu, Yuji & Tsuji, Masatsugu, 2012. "Migration factors among broadband services: Panel data analysis," 19th ITS Biennial Conference, Bangkok 2012: Moving Forward with Future Technologies - Opening a Platform for All 72543, International Telecommunications Society (ITS).
    2. Winkler, Kay, 2014. "Potential Effects of New Zealand's Policy on Next Generation High-Speed Access Networks," Working Paper Series 19308, Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation.
    3. repec:vuw:vuwscr:19308 is not listed on IDEAS
    4. Baranes, Edmond & Bourreau, Marc, 2005. "An Economist's Guide to Local Loop Unbundling," MPRA Paper 2440, University Library of Munich, Germany.
    5. Crandall, Robert W. & Eisenach, Jeffrey A. & Ingraham, Allan T., 2013. "The long-run effects of copper-loop unbundling and the implications for fiber," Telecommunications Policy, Elsevier, vol. 37(4), pages 262-281.
    6. Winkler, Kay, 2014. "Potential Effects of New Zealand's Policy on Next Generation High-Speed Access Networks," Working Paper Series 4347, Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation.

    More about this item

    JEL classification:

    • L5 - Industrial Organization - - Regulation and Industrial Policy

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