Entry in Local Telecommunication Markets

Entry in Local Telecommunication Markets In this paper, we explore the determinants of recent entry into local exchange service, and the role that regulatory policies have had in aiding this policy objective. Our results suggest that the 1996 Telecommunications Act did lead to some entry, but that strategic non-price behavior by incumbents may have offset this impact to some extent. We also find that regulatory policies and market fundamentals play an important role in determining entry. Clearly, market size (measured in various ways) is an important determinant of entry, while there is empirical support for the role of more flexible regulatory mechanisms in promoting new entry. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Review of Industrial Organization Springer Journals

Entry in Local Telecommunication Markets

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Publisher
Kluwer Academic Publishers
Copyright
Copyright © 2004 by Kluwer Academic Publishers
Subject
Economics; Industrial Organization; Microeconomics
ISSN
0889-938X
eISSN
1573-7160
D.O.I.
10.1007/s11151-004-1054-6
Publisher site
See Article on Publisher Site

Abstract

In this paper, we explore the determinants of recent entry into local exchange service, and the role that regulatory policies have had in aiding this policy objective. Our results suggest that the 1996 Telecommunications Act did lead to some entry, but that strategic non-price behavior by incumbents may have offset this impact to some extent. We also find that regulatory policies and market fundamentals play an important role in determining entry. Clearly, market size (measured in various ways) is an important determinant of entry, while there is empirical support for the role of more flexible regulatory mechanisms in promoting new entry.

Journal

Review of Industrial OrganizationSpringer Journals

Published: Dec 30, 2004

References

  • Entry under Asymmetric Regulation
    Abel, J. R.; Clements, M. E.
  • The Role of Resale Entry in Promoting Local Exchange Competition
    Beard, T. R.; Kaserman, D. L.; Mayo, J. W.

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