The impact of broadband quality standards on Internet services market structure In colombia

Juan Daniel Oviedo and Julian Hidalgo

No 12232, Documentos de Trabajo from Universidad del Rosario

Abstract: This paper develops a structural model which allows estimating the impact of regulatory decisions looking for the setting of download-speed standards on market structure and performance. We characterize a setting under which quality standards improve both service quality and availability. As to quality, we evaluate the impact of quality standards on the performance of local demand from a detailed database of broadband internet subscribers, discriminated by the main attributes of an internet subscription contract as location, supplier, monthly-fee, download- and upload-speed features. From these results, we are able to identify the effect of quality regulation on the behavior of internet providers in a differentiated product market approach. As a consequence, we are able to assert that the response of internet service providers to quality regulation is a more intense product differentiation that contributes to demand expansion and therefore to improve broadband penetration indicators.

Keywords: Regulation; Telecommunication; Information Services; InternetEconomics. (search for similar items in EconPapers)
JEL-codes: L51 L86 L96 (search for similar items in EconPapers)
Pages: 36
Date: 2014-10-10
New Economics Papers: this item is included in nep-ict and nep-reg
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:col:000092:012232

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