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Unbundling the Incumbent and Entry into Fiber: Evidence from France
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In this paper, the authors use panel data on 36,104 municipalities in metropolitan France over the period 2010-2014 to estimate two models of entry into local markets by: (i) alternative operators using wholesale access to the legacy copper network via local loop unbundling (LLU), and (ii) the incumbent and two alternative operator using the fiber technology.Abstract:
We use panel data on 36,104 municipalities in metropolitan France over the period 2010-2014 to estimate two models of entry into local markets by: (i) alternative operators using wholesale access to the legacy copper network via local loop unbundling (LLU), and (ii) the incumbent and two alternative operators using the fiber technology. We find that a higher number of LLU competitors, and hence a less concentrated local market, has a positive impact on entry by fiber operators. Moreover, the presence of upgraded cable network in the local municipality stimulates fiber deployment. However, firms may choose to upgrade copper lines instead of investing in fiber networks. We use the estimates to calculate entry thresholds into local markets, which are substantially lower for broadband provision via LLU than via fiber and decrease over time. Fiber deployment becomes cheaper over time, but according to our estimates it will remain unprofitable for the vast majority of municipalities in France within the next years.read more
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Ultra-fast broadband investment and adoption: A survey
Laura Abrardi,Carlo Cambini +1 more
TL;DR: In this paper, the authors review the existing literature on ultra-fast, fiber-based broadband network, devoting special attention to the results and to the methodology used in the most recent studies.
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Speeding up the internet: regulation and investment in European fiber optic infrastructure
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Speeding up the internet: regulation and investment in European fiber optic infrastructure
TL;DR: In this article, the authors study how the coexistence of access regulations for legacy and fiber networks shapes the incentives to invest in network infrastructure and develop a theoretical model explaining investment incentives by incumbent telecom operators and heterogeneous entrants and test its main predictions using panel data from 27 EU member states over the last decade.
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The European Electronic Communications Code: A critical appraisal with a focus on incentivizing investment in next generation broadband networks
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References
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Journal ArticleDOI
Entry and Competition in Concentrated Markets
TL;DR: In this paper, the authors propose an empirical framework for measuring the effects of entry in concentrated markets, and show how the number of producers in an oligopolistic market varies with changes in demand and market competition.
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Telecommunications Infrastructure & Economic Development: A Simultaneous Approach
TL;DR: In this paper, the authors investigate how telecommunications infrastructure affects economic growth and find evidence of a significant positive causal link, especially when a critical mass of telecommunications infrastructure is present, in 21 OECD countries over a twenty-year period.
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Telecommunications Infrastructure and Economic Development: A Simultaneous Approach
TL;DR: In this paper, the authors untersucht, how Telekommunikations-Infrastruktur auf die wirtschaftliche Entwicklung ausubt.
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Estimation of a Model of Entry in the Airline Industry
TL;DR: In this article, the authors consider the effect of an airline's scale of operation at an airport on the profitability of routes flown out of that airport and use the entry decisions of airlines as indicators of underlying profitability.