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The impact of broadband quality standards on Internet services market structure In colombia

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  • Juan Daniel Oviedo
  • Julian Hidalgo

Abstract

This paper develops a structural model which allows estimating the impact of regulatory decisions looking for the setting of download-speed standards on market structure and performance. We characterize a setting under which quality standards improve both service quality and availability. As to quality, we evaluate the impact of quality standards on the performance of local demand from a detailed database of broadband internet subscribers, discriminated by the main attributes of an internet subscription contract as location, supplier, monthly-fee, download- and upload-speed features. From these results, we are able to identify the effect of quality regulation on the behavior of internet providers in a differentiated product market approach. As a consequence, we are able to assert that the response of internet service providers to quality regulation is a more intense product differentiation that contributes to demand expansion and therefore to improve broadband penetration indicators.

Suggested Citation

  • Juan Daniel Oviedo & Julian Hidalgo, 2014. "The impact of broadband quality standards on Internet services market structure In colombia," Documentos de Trabajo 12232, Universidad del Rosario.
    • Handle: RePEc:col:000092:012232
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    File URL: http://repository.urosario.edu.co/bitstream/handle/10336/10986/12232.pdf
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    References listed on IDEAS

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    Cited by:

    1. Julian Hidalgo & Michelle Sovinsky, 2023. "Internet (Power) to the People: How to Bridge the Digital Divide," CRC TR 224 Discussion Paper Series crctr224_2023_461, University of Bonn and University of Mannheim, Germany.

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    More about this item

    Keywords

    Regulation; Telecommunication; Information Services; InternetEconomics.;
    All these keywords.

    JEL classification:

    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software

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