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Regulation of new markets in telecommunications? Market dynamics and shrinking monopolistic bottlenecks

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  • Blankart, Charles B.
  • Knieps, Günter
  • Zenhäusern, Patrick

Abstract

This paper aims at localizing network-specific market power in new markets. Three kinds of transmission qualities on service markets can be differentiated according to the products provided: narrowband services like PSTN/ISDN or GSM, semi high-speed broadband services like broadband internet access up to 6 Mbps download and VDSL services up to 50 Mbps. As long as, due to the absence of alternative network infrastructures, a monopolistic bottleneck in local infrastructure networks exists the question arises what the remaining bottleneck components are for these different markets. In this paper the shrinking-bottleneck hypothesis will be demonstrated.

Suggested Citation

  • Blankart, Charles B. & Knieps, Günter & Zenhäusern, Patrick, 2007. "Regulation of new markets in telecommunications? Market dynamics and shrinking monopolistic bottlenecks," Discussion Papers 112 [rev.], University of Freiburg, Institute for Transport Economics and Regional Policy.
    • Handle: RePEc:zbw:aluivr:112r
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    References listed on IDEAS

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    1. Knieps, Günter, 2006. "The different role of mandatory access in German regulation of railroads and telecommunications," Discussion Papers 104 [rev.], University of Freiburg, Institute for Transport Economics and Regional Policy.
    2. G. Knieps, 2005. "Telecommunications Markets in the Stranglehold of EU Regulation: On the need for a disaggregated regulatory contract," Competition and Regulation in Network Industries, Intersentia, vol. 6(2), pages 75-94, June.
    3. Knieps, Günter, 2006. "Die LKW-Maut und die drei Grundprobleme der Verkehrsinfrastrukturpolitik," Discussion Papers 111, University of Freiburg, Institute for Transport Economics and Regional Policy.
    4. Aberle, Gerd, 2005. "Zukünftige Entwicklung des Güterverkehrs: Sind Sättigungsgrenzen erkennbar?," Discussion Papers 106, University of Freiburg, Institute for Transport Economics and Regional Policy.
    5. Knieps, Günter, 2005. "Telecommunications markets in the stranglehold of EU regulation: on the need for a disaggregated regulatory contract," Discussion Papers 109 [rev.], University of Freiburg, Institute for Transport Economics and Regional Policy.
    6. Günter Knieps, 2006. "The Different Role Of Mandatory Access In German Regulation Of Railroads And Telecommunications," Journal of Competition Law and Economics, Oxford University Press, vol. 2(1), pages 149-158.
    7. Knieps, Günter, 2005. "Versorgungssicherheit und Universaldienste in Netzen: Wettbewerb mit Nebenbedingungen?," Discussion Papers 107, University of Freiburg, Institute for Transport Economics and Regional Policy.
    8. Corsetti, Giancarlo & Devereux, Michael P. & Guiso, Luigi & Hassler, John & Saint-Paul, Gilles & Sinn, Hans-Werner & Sturm, Jan-Egbert & Vives, Xavier, 2010. "The European economy," Munich Reprints in Economics 20104, University of Munich, Department of Economics.
    9. Knieps, Günter, 2002. "Does the system of letter conveyance constitute a bottleneck resource?," Discussion Papers 88, University of Freiburg, Institute for Transport Economics and Regional Policy.
    10. Günter Knieps, 2006. "Competition in the Post-Trade Markets: A Network Economic Analysis of the Securities Business," Journal of Industry, Competition and Trade, Springer, vol. 6(1), pages 45-60, March.
    11. Weiß, Hans-Jörg, 2005. "Die Potenziale des Deprival Value-Konzepts zur entscheidungsorientierten Bewertung von Kapital in liberalisierten Netzindustrien," Discussion Papers 108, University of Freiburg, Institute for Transport Economics and Regional Policy.
    12. Knieps, Günter, 2003. "Mehr Markt beim Zugang zu den Start- und Landerechten auf europäischen Flughäfen," Discussion Papers 91, University of Freiburg, Institute for Transport Economics and Regional Policy.
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    Cited by:

    1. Kranz, Johann & Picot, Arnold & Roemer, Benedikt, 2011. "Unlocking the potential of the smart metering technology: How can regulation level the playing-field for new services in smart grids?," 22nd European Regional ITS Conference, Budapest 2011: Innovative ICT Applications - Emerging Regulatory, Economic and Policy Issues 52183, International Telecommunications Society (ITS).
    2. Hans Schedl & Günther Knieps & Ingo Vogelsang & Stephan Korehnke & Nejc M. Jakopin & Klaus von den Hoff & Iris Henseler-Unger & Rebecca Harms, 2007. "Sektorspezifische Regulierung: Transitorisch oder ad infinitum?," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 60(21), pages 03-28, November.
    3. Montenegro, Lourdes O. & Araral, Eduardo, 2020. "Can competition-enhancing regulation bridge the quality divide in Internet provision?," Telecommunications Policy, Elsevier, vol. 44(1).
    4. Knieps, Günter, 2012. "Competition and the railroads: A European perspective," Discussion Papers 142, University of Freiburg, Institute for Transport Economics and Regional Policy.
    5. Knieps, Günter & Zenhäusern, Patrick, 2008. "The fallacies of network neutrality regulation," Discussion Papers 115 [rev.], University of Freiburg, Institute for Transport Economics and Regional Policy.
    6. Knieps, Günter & Zenhäusern, Patrick, 2011. "The reform process of the railway sector in Europe: A disaggregated regulatory approach," Discussion Papers 141, University of Freiburg, Institute for Transport Economics and Regional Policy.
    7. Vanberg, Margit A., 2007. "Implications of Network Convergence on Local Access Regulation in the U.S. and the EU," ZEW Discussion Papers 07-039, ZEW - Leibniz Centre for European Economic Research.
    8. Knieps, Günter & Weiß, Hans-Jörg, 2008. "Regulatory agencies and regulatory risk," Discussion Papers 118 [rev.], University of Freiburg, Institute for Transport Economics and Regional Policy.
    9. Stocker, Volker, 2013. "On the weal and woe of internet traffic management in Europe: A critical appraisal from a network economic perspective," 24th European Regional ITS Conference, Florence 2013 88542, International Telecommunications Society (ITS).
    10. Polykalas, Spyros E. & Prezerakos, George N., 2015. "Measuring the impact of market competition analysis process in EU׳s electronic communications sector: Catalyst or impediment towards market competition?," Telecommunications Policy, Elsevier, vol. 39(3), pages 241-252.
    11. Paul J.J. Welfens & Michael Vogelsang, 2009. "Regulierung und Innovationsdynamik in der EU-Telekommunikationswirtschaft," EIIW Discussion paper disbei165, Universitätsbibliothek Wuppertal, University Library.
    12. Günter Knieps & Patrick Zenhäusern, 2014. "Regulatory fallacies in global telecommunications: the case of international mobile roaming," International Economics and Economic Policy, Springer, vol. 11(1), pages 63-79, February.
    13. Knieps, Günter, 2010. "The three criteria test, the essential facilities doctrine and the theory of monopolistic bottlenecks," Discussion Papers 132, University of Freiburg, Institute for Transport Economics and Regional Policy.
    14. Knieps, Günter & Zenhäusern, Patrick, 2013. "Regulatory fallacies in global telecommunications: The case of international mobile roaming," Discussion Papers 144, University of Freiburg, Institute for Transport Economics and Regional Policy.
    15. Antonio Nicita & Massimiliano Vatiero, 2009. "Incomplete Contracts, Irreversible Investments and Entry Deterrence," Department of Economics University of Siena 566, Department of Economics, University of Siena.
    16. Knieps, Günter, 2010. "Network neutrality and the evolution of the internet," Discussion Papers 135, University of Freiburg, Institute for Transport Economics and Regional Policy.
    17. Knieps, Günter, 2013. "The evolution of the generalized differentiated services architecture and the changing role of the Internet engineering task force," Discussion Papers 147, University of Freiburg, Institute for Transport Economics and Regional Policy.
    18. Knieps, Günter, 2011. "Market driven network neutrality and the fallacies of Internet traffic quality regulation," Discussion Papers 136, University of Freiburg, Institute for Transport Economics and Regional Policy.
    19. Knieps, Günter & Zenhäusern, Patrick, 2009. "Stepping stones and access holidays: The fallacies of regulatory micro-management," Discussion Papers 123, University of Freiburg, Institute for Transport Economics and Regional Policy.
    20. Knieps, Günter, 2014. "Competition and third party access in railroads," Discussion Papers 150, University of Freiburg, Institute for Transport Economics and Regional Policy.
    21. Knieps, Günter & Zenhäusern, Patrick, 2009. "The reform of the European regulatory framework for electronic communications: The unexploited phasing-out potentials," Discussion Papers 128, University of Freiburg, Institute for Transport Economics and Regional Policy.
    22. Knieps, Günter, 2011. "Market driven network neutrality and the fallacies of internet traffic quality regulation," 22nd European Regional ITS Conference, Budapest 2011: Innovative ICT Applications - Emerging Regulatory, Economic and Policy Issues 52149, International Telecommunications Society (ITS).
    23. Knieps, Günther, 2010. "Regulatory reforms of European network industries and the courts," Discussion Papers 129 [rev.], University of Freiburg, Institute for Transport Economics and Regional Policy.
    24. Knieps, Günter, 2008. "The net neutrality debate and the German communications and competition law," Discussion Papers 120, University of Freiburg, Institute for Transport Economics and Regional Policy.

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    20. Knieps, Günter & Weiß, Hans-Jörg, 2008. "Regulatory agencies and regulatory risk," Discussion Papers 118 [rev.], University of Freiburg, Institute for Transport Economics and Regional Policy.

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