Platform Competition and Broadband Adoption: Theory and Empirical Evidence from the European Union

Fabio Manenti ()

Economics Bulletin, 2005, vol. 28, issue 1, A0

Abstract: Broadband access provides users with high speed connectivity to the Internet. BB is seen as the way for users to exploit the potentials of new applications. This has generated a policy debate on how to stimulate adoption of broadband technology. One of the most disputed issues is about competition policies: these may be intended to promote competition in the Digital Subsrcriber Line segment of the market (intra-platform), or to stimulate entry into the market for alternative platforms such as cable access or fiber optics (inter-platform). Using a model of differentiated oligopoly, our paper studies the effect of inter and intra platform competition on the diffusion of broadband access. The implications of the model are tested using data from 14 European Countries. The evidence confirms the results of the model and indicates that while inter-platform competition drives BB adoption, competition in the market for DSL services does not play a significant role.

JEL-codes: L5 (search for similar items in EconPapers)
Date: 2005-01-11
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Citations: View citations in EconPapers (7)

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