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“Determinants of Broadband Access: Is Platform Competition always the Key Variable to Success?”

Author

Listed:
  • Xavier Fageda

    (Faculty of Economics, University of Barcelona)

  • Rafael Rubio

    (Faculty of Economics, University of Barcelona)

  • Montserrat Termes

    (Faculty of Economics, University of Barcelona)

Abstract
Previous studies have identified the rivalry among technological platforms as one of the main driving forces of broadband services penetration. This paper draws on data from the Spanish market between 2005 and 2011 to estimate the main determinants of broadband prices. Controlling for broadband tariffs features and network variables, we examine the impact of the different modes of competition on prices. We find that inter-platform competition has no significant effects over prices, while intra-platform competition is a key driver of the prices charged in the broadband market. Our analysis suggests that the impact of different types of competition on prices is critically affected by the levels of development of the broadband market achieved by the considered country.

Suggested Citation

  • Xavier Fageda & Rafael Rubio & Montserrat Termes, 2013. "“Determinants of Broadband Access: Is Platform Competition always the Key Variable to Success?”," IREA Working Papers 201303, University of Barcelona, Research Institute of Applied Economics, revised Mar 2013.
    • Handle: RePEc:ira:wpaper:201303
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    Keywords

    broadband prices; inter-platform competition; intra-platform competition. JEL classification: L38; L51; L96;
    All these keywords.

    JEL classification:

    • L38 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Public Policy
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

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