Co-investment in the sharing of Telecommunications Infrastructures

François Jeanjean

31st European Regional ITS Conference, Gothenburg 2022: Reining in Digital Platforms? Challenging monopolies, promoting competition and developing regulatory regimes from International Telecommunications Society (ITS)

Abstract: This paper studies the effects of infrastructure sharing agreements on telecommunications markets. Using a model with an investment stage where firms compete" 'a la Cournot", I find that, infrastructure sharing agreements increase investment at industry level. Indeed, the sharing of infrastructures reduces costs of investment for involved operators and encourage them to invest more. This holds except if involved operators are much less efficient than their competitors (i.e., they have much higher marginal costs before investment). Furthermore, infrastructure sharing agreements generally increase both investments and consumer surplus, except if involved operators are much less efficient than their competitors or if they have very different level of efficiency. The infrastructure sharing agreement is even more effective when the most efficient operators are involved.

Keywords: Mobile telecommunications; network sharing; competition; consumer welfare (search for similar items in EconPapers)
JEL-codes: L11 L40 L96 (search for similar items in EconPapers)
Date: 2022
New Economics Papers: this item is included in nep-com, nep-gth and nep-reg
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:itse22:265636

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