Unbundling the incumbent and deployment of high-speed internet: Evidence from France

Marc Bourreau, Lukasz Grzybowski and Maude Hasbi

International Journal of Industrial Organization, 2019, vol. 67, issue C

Abstract: In this paper, we study the impact of competition on the legacy copper network on the deployment of high-speed broadband. We first develop a theoretical model, which shows that the relation between the number of competitors and investment in a quality-improving technology can be positive if the quality of the new technology is high enough, and is negative otherwise. We test these theoretical predictions using data on broadband deployments in France in more than 36,000 local municipalities. First, using panel data over the period 2011–2014, we estimate a model of entry into local markets by alternative operators using local loop unbundling (LLU). Second, using cross-sectional data for the year 2015, we estimate how the number of LLU entrants impacts the deployment of high-speed broadband with speed of 30 Mbps or more by means of VDSL, cable and fiber technologies, controlling for the endogeneity of LLU entry. We find that a higher number of LLU competitors in a municipality implies lower incentives to deploy and expand coverage of high-speed broadband with speed of 30 Mbps or more.

Keywords: High-speed broadband; Local loop unbundling; Competition; Market entry (search for similar items in EconPapers)
JEL-codes: K23 L13 L51 L96 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Working Paper: Unbundling the incumbent and deployment of high-speed internet: Evidence from France (2019)
Working Paper: Unbundling the Incumbent and Deployment of High-Speed Internet: Evidence from France (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:indorg:v:67:y:2019:i:c:s0167718719300487

DOI: 10.1016/j.ijindorg.2019.102526

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