Briglauer, Wolfgang. 2015. Facility- and Service-based Competition and Investment in Fixed Broadband Networks: Lessons from a Decade of Access Regulations in the European Union Member States. 26th European Regional International Telecommunication Society Conference, San Lorenzo de El Escorial, Spanien, 25.06-27.06.2015.
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 | Paper presented at an academic conference or symposium |
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 |
Event | 26th European Regional International Telecommunication Society Conference |
Year | 2015 |
Date | 25.06-27.06.2015 |
Country | Spain |
Location | San Lorenzo de El Escorial |
URL | http://www.itseurope.org/wp/wp-content/uploads/2015/06/final-draft-programme22.6.2015.pdf |
JEL | L43, L52, L96 |
Associations
- People
- Briglauer, Wolfgang (Details)
- Organization
- Research Institute for Regulatory Economics FI (Details)