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Bureaucrats as entrepreneurs: Do municipal telecommunications providers hinder private entrepreneurs

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  • Hauge, Janice A.
  • Jamison, Mark A.
  • Gentry, Richard J.

Abstract

We consider how government-owned enterprises affect privately owned rivals. Specifically, we compare the types of markets that municipally owned telecommunications providers in the United States serve to the types of markets that competitive local exchange carriers (CLECs) serve. We find that CLECs focus on potential profitability while municipalities appear to respond to other factors, such as political considerations or the desire to provide competition to incumbents. As a result, municipal providers tend to serve markets that CLECs do not. We also find that the presence of a municipal provider in a market does not affect the probability that a CLEC also serves that market. Our results suggest municipalities may not pose a significant competitive threat to CLECs and do not preclude CLEC participation.

Suggested Citation

  • Hauge, Janice A. & Jamison, Mark A. & Gentry, Richard J., 2008. "Bureaucrats as entrepreneurs: Do municipal telecommunications providers hinder private entrepreneurs," Information Economics and Policy, Elsevier, vol. 20(1), pages 89-102, March.
    • Handle: RePEc:eee:iepoli:v:20:y:2008:i:1:p:89-102
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    References listed on IDEAS

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    Cited by:

    1. Janice Hauge & Mark Jamison & R. Jewell, 2009. "A Consideration of Telecommunications Market Structure in the Presence of Municipal Provision: The Case of US Cities," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 34(2), pages 135-152, March.
    2. Robert C. Seamans, 2012. "Fighting City Hall: Entry Deterrence and Technology Upgrades in Cable TV Markets," Management Science, INFORMS, vol. 58(3), pages 461-475, March.
    3. Vogelsang Ingo, 2013. "The Endgame of Telecommunications Policy? A Survey," Review of Economics, De Gruyter, vol. 64(3), pages 193-270, December.
    4. Jullien Bruno & Pouyet Jerome & Sand-Zantman Wilfried, 2010. "Public and Private Investments in Regulated Network Industries: Coordination and Competition Issues," Review of Network Economics, De Gruyter, vol. 9(4), pages 1-22, December.
    5. Ford, George S., 2021. "Electricity rates and the funding of municipal broadband networks: An empirical analysis," Energy Economics, Elsevier, vol. 102(C).
    6. Landgraf, Steven W., 2020. "Entry threats from municipal broadband Internet and impacts on private provider quality," Information Economics and Policy, Elsevier, vol. 52(C).
    7. Madden, Gary & Bohlin, Erik & Ahmad, Hasnat & Tran, Thien, 2013. "OECD unbundled local loop pricing," Telecommunications Policy, Elsevier, vol. 37(11), pages 1033-1045.
    8. Landgraf, Steven W., 2023. "Measuring incumbent ISP response to municipal broadband opt-out referenda in Colorado," Telecommunications Policy, Elsevier, vol. 47(10).
    9. Eric Chiang & Janice Hauge & Mark Jamison, 2007. "Subsidies and distorted markets: Do telecom subsidies affect competition?," Working Papers 07002, Department of Economics, College of Business, Florida Atlantic University.
    10. Robert Seamans, 2008. "Pricing and Multi-Market Contact in the Cable TV Industry," Working Papers 08-13, NET Institute.
    11. Timo TREMML, 2019. "Linking Two Worlds? Entrepreneurial Orientation In Public Enterprises: A Systematic Review And Research Agenda," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 90(1), pages 25-51, March.

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