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Geographic access markets and investments

Author

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  • Marc Bourreau

    (SES - Département Sciences Economiques et Sociales - Télécom ParisTech, ECOGE - Economie Gestion - I3 SES - Institut interdisciplinaire de l’innovation de Telecom Paris - Télécom ParisTech - I3 - Institut interdisciplinaire de l’innovation - CNRS - Centre National de la Recherche Scientifique)

  • Carlo Cambini

    (Polito - Politecnico di Torino = Polytechnic of Turin)

  • Steffen Hoernig

Abstract

We analyze the adoption of access regimes that differ according to the prevailing degree of infrastructure competition in different geographical areas of a country. Our results show that, compared to a uniform access price, geographically differentiated access prices improve welfare and incentivize investment. However, when access provision in areas with infrastructure competition is deregulated, welfare might decrease, because multiple inefficient equilibria at the wholesale level emerge, with either too little or too much investment.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Marc Bourreau & Carlo Cambini & Steffen Hoernig, 2015. "Geographic access markets and investments," Post-Print hal-02085286, HAL.
    • Handle: RePEc:hal:journl:hal-02085286
    DOI: 10.1016/j.infoecopol.2015.04.003
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    1. Nitsche, Rainer & Wiethaus, Lars, 2011. "Access regulation and investment in next generation networks -- A ranking of regulatory regimes," International Journal of Industrial Organization, Elsevier, vol. 29(2), pages 263-272, March.
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    5. Bourreau, Marc & Cambini, Carlo & Doğan, Pınar, 2012. "Access pricing, competition, and incentives to migrate from “old” to “new” technology," International Journal of Industrial Organization, Elsevier, vol. 30(6), pages 713-723.
    6. Hoernig, Steffen & Cambini, Carlo, 2012. "Geographic Access Rules and Investments," CEPR Discussion Papers 9013, C.E.P.R. Discussion Papers.
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    Cited by:

    1. Bourreau, Marc & Cambini, Carlo & Doğan, Pınar, 2012. "Access pricing, competition, and incentives to migrate from “old” to “new” technology," International Journal of Industrial Organization, Elsevier, vol. 30(6), pages 713-723.
    2. Ribeiro, Vitor Miguel, 2016. "Exclusion and regulatory intervention in investment sharing agreements," Telecommunications Policy, Elsevier, vol. 40(10), pages 1032-1051.
    3. Weiming Li & Zhaoyang Cai & Shixiong Cao, 2021. "What has caused regional income inequality in China? Effects of 10 socioeconomic factors on per capita income," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(9), pages 13403-13417, September.
    4. Sahebali, M. W. W. & Sadowski, Bert M. & Nomaler, O. & Brennenraedts, R., 2019. "Infrastructure Rollout and Fibre Provision: The case of NGN in the Netherlands," 30th European Regional ITS Conference, Helsinki 2019 205210, International Telecommunications Society (ITS).
    5. Matsushima, Noriaki & Mizuno, Keizo, 2018. "Strategic investments under competition for access provision," Telecommunications Policy, Elsevier, vol. 42(2), pages 127-144.
    6. Vitor Miguel Ribeiro, 2018. "Dark fiber price regulation in the absence of facilities-based competition," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 45(2), pages 243-278, June.
    7. Benseny, Jaume & Lahteenmaki, Jarno & Toyli, Juuso & Hammainen, Heikki, 2023. "Urban wireless traffic evolution: The role of new devices and the effect of policy," Telecommunications Policy, Elsevier, vol. 47(7).
    8. Abrardi, Laura & Cambini, Carlo, 2019. "Ultra-fast broadband investment and adoption: A survey," Telecommunications Policy, Elsevier, vol. 43(3), pages 183-198.
    9. David Henriques, 2021. "Access Prices Indexed to Geographical Coverage of Innovative Telecom Services," Journal of Industry, Competition and Trade, Springer, vol. 21(1), pages 123-138, March.
    10. Sahebali, M.W.W. & Sadowski, Bert M. & Nomaler, O. & Brennenraedts, R., 2021. "Rolling out of fibre optic networks in intermediate versus urban areas: An exploratory spatial analysis in the Netherlands," Telecommunications Policy, Elsevier, vol. 45(5).
    11. Brito, Duarte & Tselekounis, Markos, 2016. "Access regulation and the entrant's mode of entry under multi-product competition in telecoms," Information Economics and Policy, Elsevier, vol. 37(C), pages 20-33.

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    More about this item

    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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