Access Regulation and the Adoption of VoIP

Paul de Bijl () and Martin Peitz

CPB Discussion Papers from CPB Netherlands Bureau for Economic Policy Analysis

Abstract: The introduction of packet-switched telephony in the form of VoIP raises concerns about current regulatory practice. Access regulation has been designed for traditional telephony on PSTN networks. In this paper, we analyze the effect of access regulation and retail price regulation of PSTN networks on the adoption of a new technology in the form of VoIP. In particular, we show that with endogenous consumer choice between PSTN and VoIP telephony, higher prices for terminating access to the PSTN network make VoIP less likely to succeed and lead to lower profits of operators that offer VoIP telephony exclusively

Keywords: telecommunications; voice over broadband (VoB); voice over Internet protocol (VoIP); entry; access; regulation; imperfect competition (search for similar items in EconPapers)
JEL-codes: L96 L51 L13 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-com, nep-ict, nep-ipr, nep-mic and nep-reg
Date: 2008-07
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http://www.cpb.nl/eng/pub/cpbreeksen/discussie/109/disc109.pdf (application/pdf)

Related works:
Working Paper: Access Regulation and the Adoption of VoIP (2006)
Journal Article: Access regulation and the adoption of VoIP (2009)
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Persistent link: http://EconPapers.repec.org/RePEc:cpb:discus:109

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