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Asymmetric Broadband Wholesale Regulation

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  • Hoernig, Steffen

Abstract

Due to technological convergence, multiple infrastructures can now offer broadband or triple-play services, while the existing access regulation is based on a single essential network. We show that continued asymmetric access regulation of one network does not control sufficiently for market power and benefits the unregulated network, and that symmetric regulation would lead to higher consumer surplus. Furthermore, the whole setup of access regulation may not be viable in the long run if regulatory constraints provide strong first-mover advantages to the unregulated network.

Suggested Citation

  • Hoernig, Steffen, 2011. "Asymmetric Broadband Wholesale Regulation," CEPR Discussion Papers 8399, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:8399
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    References listed on IDEAS

    as
    1. Cave, Martin, 0. "Encouraging infrastructure competition via the ladder of investment," Telecommunications Policy, Elsevier, vol. 30(3-4), pages 223-237, April.
    2. Hoernig, Steffen, 2014. "Competition between multiple asymmetric networks: Theory and applications," International Journal of Industrial Organization, Elsevier, vol. 32(C), pages 57-69.
    3. von Ungern-Sternberg, Thomas, 1991. "Monopolistic Competition on the Pyramid," Journal of Industrial Economics, Wiley Blackwell, vol. 39(4), pages 355-368, June.
    4. Crandall Robert W., 2008. "Letting Go? The Federal Communications Commission in the Era of Deregulation," Review of Network Economics, De Gruyter, vol. 7(4), pages 1-28, December.
    5. Jerry A. Hausman & J. Gregory Sidak & HalJ. Singer, 2001. "Cable Modems and DSL: Broadband Internet Access for Residential Customers," American Economic Review, American Economic Association, vol. 91(2), pages 302-307, May.
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    Citations

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    Cited by:

    1. Keizo Mizuno & Ichiro Yoshino, 2015. "Overusing a bypass under cost-based access regulation: underinvestment with spillovers," Journal of Regulatory Economics, Springer, vol. 47(1), pages 29-57, February.
    2. Noriaki Matsushima & Keizo Mizuno, 2012. "Infrastructure Upgrades and Foreclosure with Coexistence of Service-Based and Facility-Based Firms," ISER Discussion Paper 0860, Institute of Social and Economic Research, Osaka University.
    3. George HOUPIS & Júlia LUCENA BETRIU & Juana SANTAMARIA, 2011. "Geographic segmentation of broadband markets: appropriate differentiation or risk to a single EU market?," Communications & Strategies, IDATE, Com&Strat dept., vol. 1(82), pages 105-126, 2nd quart.

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    More about this item

    Keywords

    Access regulation; Cable; Convergence; Copper;
    All these keywords.

    JEL classification:

    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

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