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Ownership Structure of Cable Networks and Competition in Local Access

Author

Listed:
  • Duarte Brito

    (Universidade Nova de Lisboa)

  • Pedro Pereira

    (Autoridade da Concorrência)

Abstract
In this paper, we discuss the role of cable television networks and their ownership structure in promoting competition in the local access market. First, we show that the dual ownership of a local telephone network and a cable network, compared with separate ownership, may increase or decrease incentives to invest in upgrading the cable television network. Second, we argue that separate ownership of the two networks is important to promote competition in local access.

Suggested Citation

  • Duarte Brito & Pedro Pereira, 2005. "Ownership Structure of Cable Networks and Competition in Local Access," Working Papers 09, Portuguese Competition Authority.
    • Handle: RePEc:pca:wpaper:09
    as

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    File URL: http://www.concorrencia.pt/download/WP09_OwnCableAdC.pdf
    File Function: First version, 2005
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    References listed on IDEAS

    as
    1. Barros, Pedro & Cadima, Nuno, 2000. "The Impact of Mobile Phone Diffusion on the Fixed-Link Network," CEPR Discussion Papers 2598, C.E.P.R. Discussion Papers.
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    5. Bourreau, Marc & Dogan, Pinar, 2004. "Service-based vs. facility-based competition in local access networks," Information Economics and Policy, Elsevier, vol. 16(2), pages 287-306, June.
    6. Rodini, Mark & Ward, Michael R. & Woroch, Glenn A., 0. "Going mobile: substitutability between fixed and mobile access," Telecommunications Policy, Elsevier, vol. 27(5-6), pages 457-476, June.
    7. Bourreau, Marc & Dogan, Pinar, 2005. "Unbundling the local loop," European Economic Review, Elsevier, vol. 49(1), pages 173-199, January.
    8. Philip M. Parker & Lars-Hendrik Roller, 1997. "Collusive Conduct in Duopolies: Multimarket Contact and Cross-Ownership in the Mobile Telephone Industry," RAND Journal of Economics, The RAND Corporation, vol. 28(2), pages 304-322, Summer.
    9. Dessein, Wouter, 2004. "Network competition with heterogeneous customers and calling patterns," Information Economics and Policy, Elsevier, vol. 16(3), pages 323-345, September.
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    11. Braeutigam, Ronald R, 1979. "Optimal Pricing with Intermodal Competition," American Economic Review, American Economic Association, vol. 69(1), pages 38-49, March.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Brito, Duarte & Pereira, Pedro, 2008. "Investment and welfare implications of the ownership structure of overlapping networks," Information Economics and Policy, Elsevier, vol. 20(1), pages 38-53, March.

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    More about this item

    Keywords

    Cable Networks; Local Access; Competition;
    All these keywords.

    JEL classification:

    • L43 - Industrial Organization - - Antitrust Issues and Policies - - - Legal Monopolies and Regulation or Deregulation
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

    NEP fields

    This paper has been announced in the following NEP Reports:

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