The impact on broadband access to the Internet of the dual ownership of telephone and cable networks

• Type: Article in International Scientific Journal
• Date: 2011

Authors

Pereira, P (Author) Other; Ribeiro, T (Author) Other

Journal

Title: International Journal of Industrial Organization

Vol. 29

Pages: 283-293

ISSN: 0167-7187

Publisher: Elsevier

Indexing

ISI Web of Knowledge - 16 Citations

Scopus - 17 Citations

Other information

Authenticus ID: P-002-THD

DOI: 10.1016/j.ijindorg.2010.07.004

Abstract (EN): In Portugal, until recently, the telecommunications incumbent offered broadband access to the Internet, both through digital subscriber line and cable modem. We estimate the impact on broadband access to the Internet of the structural separation of these two businesses. Using a panel of consumer level data and a random effects mixed logit model, we estimate the price elasticities of demand and the marginal costs of broadband access to the Internet. Based on these estimates, we simulate the effect of structural separation on prices and social welfare. Our estimates indicate that structural separation would cause a substantial welfare increase. These results raise questions about the policy of some countries of allowing the dual ownership of telephone and cable networks.

Language: English

Type (Professor's evaluation): Scientific

No. of pages: 11