Briglauer, Wolfgang, Gugler, Klaus, Haxhimusa, Adhurim. 2016. Facility-and Service-based Competition and Investment in Fixed Broadband Networks: Lessons from a Decade of Access Regulations in the European Union Member States. Telecommunications Policy (40), 729-742.
BibTeX
Abstract
This paper employs firm-level panel data of 57 incumbent and entrant firms for 23 European countries in the decade from 2003 to 2012. We examine the impact of service- and facility-based competition on firm-level investment as well as the strategic effects underlying infrastructure investment decisions. At the same time we explicitly model the structural dynamics of broadband investment by means of a flexible accelerator model. The empirical specification employs dynamic panel estimation techniques which allow us to account for various sources of endogeneity. We find that facility-based competition exerts a positive and significant impact on both incumbents and entrants implying that incumbents’ and entrants’ investment decisions are strategic complements. Moreover, we find that intermodal competition in terms of fixed-mobile substitution exerts different effects at the firm level. Finally, we show that service-based competition appears to have no significant impact on the investment decision of incumbents and entrants. However, with respect to the later phase of market liberalization, service-based competition exerts a negative impact on entrants’ investment. Our results thus also provide relevant policy guidance on the role of service-based competition in regulating emerging high-speed broadband infrastructure.
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Status of publication | Published |
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Affiliation | WU |
Type of publication | Journal article |
Journal | Telecommunications Policy |
Citation Index | SSCI |
WU-Journal-Rating new | STRAT-C, VW-D |
Language | English |
Title | Facility-and Service-based Competition and Investment in Fixed Broadband Networks: Lessons from a Decade of Access Regulations in the European Union Member States |
Number | 40 |
Year | 2016 |
Page from | 729 |
Page to | 742 |
Reviewed? | Y |
URL | http://www.sciencedirect.com/science/article/pii/S0308596115001184 |
DOI | http://dx.doi.org/10.1016/j.telpol.2015.07.015 |
JEL | L43, L52, L96 |
Associations
- People
- Briglauer, Wolfgang (Details)
- Gugler, Klaus (Details)
- Haxhimusa, Adhurim (Former researcher)
- Organization
- Research Institute for Regulatory Economics FI (Details)
- Department of Economics (Gugler) (Details)