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Wholesale unbundling and intermodal competition

Authors:

Christian M. DipponAuthors Info & Claims

Telecommunications Policy, Volume 34, Issue 1-2

Pages 54 - 64

https://doi.org/10.1016/j.telpol.2009.11.002

Published: 01 February 2010 Publication History

Abstract

This paper explores the effects of network unbundling in telecommunications. It includes discussions of the basic economics of unbundling; the competitive effects of unbundling on voice services in the US and broadband in the US and the European Union; and unbundling policy in a world of convergence. Mandatory unbundling can delay facilities-based entry and reduce network investment, particularly if unbundled input prices are set too low. Excessive prices for essential network elements could hamper competitive entry. Some argue that mandatory unbundling has stimulated competition; however, the results suggest that when relevant demand and supply determinants are included in the analysis, the association between mandatory unbundling and increased broadband penetration is not statistically significant. Assessing the costs and benefits of unbundling is more difficult because of convergence and intermodal competition among the video, wireless and telephone providers. Thus, the dynamic nature of the sector and the costs of implementing mandatory unbundling imply that policy makers should carefully examine the costs and benefits of regulatory intervention.

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Cited By

Rajabiun RMiddleton C(2015)Regulation, investment and efficiency in the transition to next generation broadband networksTelematics and Informatics10.1016/j.tele.2014.09.00132:2(230-244)Online publication date: 1-May-2015
https://dl.acm.org/doi/10.1016/j.tele.2014.09.001
de Carvalho PGupta AKar K(2013)Hierarchical spectrum market and the design of contracts for mobile providersACM SIGMOBILE Mobile Computing and Communications Review10.1145/2557968.255797617:4(60-71)Online publication date: 16-Dec-2013
https://dl.acm.org/doi/10.1145/2557968.2557976
Moreno PLozano SGutiéRrez E(2013)Dynamic performance analysis of U.S. wireline telecommunication companiesTelecommunications Policy10.1016/j.telpol.2012.12.00137:6-7(469-482)Online publication date: 1-Jul-2013
https://dl.acm.org/doi/10.1016/j.telpol.2012.12.001
Show More Cited By

Wholesale unbundling and intermodal competition
1. Applied computing
  1. Law, social and behavioral sciences
2. Networks
  1. Network types

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Published In

cover image Telecommunications Policy

Telecommunications Policy Volume 34, Issue 1-2

February, 2010

117 pages

ISSN:0308-5961

Issue’s Table of Contents

Copyright © Elsevier Ltd © 2009.

Publisher

Pergamon Press, Inc.

United States

Publication History

Published: 01 February 2010

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Cited By

Rajabiun RMiddleton C(2015)Regulation, investment and efficiency in the transition to next generation broadband networksTelematics and Informatics10.1016/j.tele.2014.09.00132:2(230-244)Online publication date: 1-May-2015
https://dl.acm.org/doi/10.1016/j.tele.2014.09.001
de Carvalho PGupta AKar K(2013)Hierarchical spectrum market and the design of contracts for mobile providersACM SIGMOBILE Mobile Computing and Communications Review10.1145/2557968.255797617:4(60-71)Online publication date: 16-Dec-2013
https://dl.acm.org/doi/10.1145/2557968.2557976
Moreno PLozano SGutiéRrez E(2013)Dynamic performance analysis of U.S. wireline telecommunication companiesTelecommunications Policy10.1016/j.telpol.2012.12.00137:6-7(469-482)Online publication date: 1-Jul-2013
https://dl.acm.org/doi/10.1016/j.telpol.2012.12.001
Galperin HRuzzier C(2013)Price elasticity of demand for broadbandTelecommunications Policy10.1016/j.telpol.2012.06.00737:6-7(429-438)Online publication date: 1-Jul-2013
https://dl.acm.org/doi/10.1016/j.telpol.2012.06.007

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