Broadband penetration and broadband competition: evidence and analysis in the EU market

Broadband penetration and broadband competition: evidence and analysis in the EU market Purpose – To examine broadband competition and broadband penetration in a set of countries that employ the same regulation framework. To define the policy and strategy required to promote broadband in weak markets that do not employ alternative infrastructures. Design/methodology/approach – Study penetration and competition level statistics from 2002 to 2005 in a set of countries with different infrastructures deployed, services provided as well as in their social‐economic structures but employing the same regulation framework. Measure the level of inter‐platform and intra‐platform competition as well as the availability of bitstream access versus the incumbents' shares. Findings – The paper concludes that a mature broadband market is the one that exhibits a high penetration ratio in combination with a high competition level. Bitstream access can counterbalance the inexistence of alternative broadband infrastructures, especially in weak markets. In particular the availability of numerous bitstream access types in combination with the proper price differentiation can fuel broadband adoption in relatively weak broadband markets. Originality/value – The paper challenges the general rule that only platform (also known as facility) based competition guarantees long‐term growth of the broadband market. Bitstream and resale access do not lag local loop unbundling and can be used in weak markets that do not employ alternative infrastructures to fuel competition in the relevant markets. Different policies and strategies must be followed, in that case, on behalf of the local NRA. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png info Emerald Publishing

Broadband penetration and broadband competition: evidence and analysis in the EU market

info, Volume 8 (6): 16 – Nov 1, 2006

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Publisher
Emerald Publishing
Copyright
Copyright © 2006 Emerald Group Publishing Limited. All rights reserved.
ISSN
1463-6697
DOI
10.1108/14636690610707464
Publisher site
See Article on Publisher Site

Abstract

Purpose – To examine broadband competition and broadband penetration in a set of countries that employ the same regulation framework. To define the policy and strategy required to promote broadband in weak markets that do not employ alternative infrastructures. Design/methodology/approach – Study penetration and competition level statistics from 2002 to 2005 in a set of countries with different infrastructures deployed, services provided as well as in their social‐economic structures but employing the same regulation framework. Measure the level of inter‐platform and intra‐platform competition as well as the availability of bitstream access versus the incumbents' shares. Findings – The paper concludes that a mature broadband market is the one that exhibits a high penetration ratio in combination with a high competition level. Bitstream access can counterbalance the inexistence of alternative broadband infrastructures, especially in weak markets. In particular the availability of numerous bitstream access types in combination with the proper price differentiation can fuel broadband adoption in relatively weak broadband markets. Originality/value – The paper challenges the general rule that only platform (also known as facility) based competition guarantees long‐term growth of the broadband market. Bitstream and resale access do not lag local loop unbundling and can be used in weak markets that do not employ alternative infrastructures to fuel competition in the relevant markets. Different policies and strategies must be followed, in that case, on behalf of the local NRA.

Journal

infoEmerald Publishing

Published: Nov 1, 2006

Keywords: Broadband networks; Competitive strategy

References

  • Implications of regulation for entry and investment in the local loop
    Christodoulou, K.; Vlachos, K.
  • Investment strategies in The Netherlands
    Rood, H.; Velde, R.A.
  • Canada, South Korea, Netherlands and Sweden: regulatory implications of the convergence of telecommunications, broadcasting and internet services
    Wu, I.

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