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.

RIS

@ARTICLE{Briglauer2016,
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},
author = {Wolfgang Briglauer and Klaus Gugler and Adhurim Haxhimusa},
year = {2016},
doi = {http://dx.doi.org/10.1016/j.telpol.2015.07.015},
url = {http://www.sciencedirect.com/science/article/pii/S0308596115001184},
number = {40},
language = {EN},
pages = {729-742},
journal = {Telecommunications Policy},
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.},
}