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Estimating the impact of co-investment in fiber to the home coverage

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  • Lebourges, Marc
  • Liang, Julienne

Abstract

Does co-investment enhance fiber to the home (FTTH) coverage? We combine several French municipality-level datasets to answer this question. We find that a 1% co-financing share by co-investors leads to an increase in FTTH coverage by 0.8% during the 2013-2016 study period and a 0.6% annual progression. This result is robust to changes in the specification and instrument and is consistent with the outcome of a simple difference-in-differences analysis comparing FTTH coverage in co-investment areas with areas with no co-investment ceteris paribus. In addition, we find that a 1% co-investment increases FTTH adoption among Orange's fixed broadband customers by 1.2% and decreases Orange's total fixed broadband penetration for asymmetric digital subscriber lines (ADSL) plus FTTH coverage by 1.1%, which benefits competitors. Our findings confirm that co-investment supports the policy objectives of coverage, adoption and competition and should be supported by regulation.

Suggested Citation

  • Lebourges, Marc & Liang, Julienne, 2018. "Estimating the impact of co-investment in fiber to the home coverage," 29th European Regional ITS Conference, Trento 2018 184953, International Telecommunications Society (ITS).
    • Handle: RePEc:zbw:itse18:184953
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    References listed on IDEAS

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    Cited by:

    1. Ferrandis, Jesús & Ramos, Sergio & Feijóo, Claudio, 2021. "An assessment of estimation models and investment gaps for the deployment of high-speed broadband networks in NUTS3 regions to meet the objectives of the European Gigabit Society," Telecommunications Policy, Elsevier, vol. 45(7).

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    More about this item

    Keywords

    FTTH coverage; co-investment;

    JEL classification:

    • L43 - Industrial Organization - - Antitrust Issues and Policies - - - Legal Monopolies and Regulation or Deregulation
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

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