Universität zu Köln

Nardotto, Mattia, Valletti, Tommaso and Verboven, Frank (2015). UNBUNDLING THE INCUMBENT: EVIDENCE FROM UK BROADBAND. J. Eur. Econ. Assoc., 13 (2). S. 330 - 363. OXFORD: OXFORD UNIV PRESS. ISSN 1542-4774

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Abstract

We consider the impact of a regulatory process forcing an incumbent telecom operator to make its local broadband network available to other companies (local loop unbundling, or LLU). Entrants are then able to upgrade their individual lines and offer Internet services directly to customers. Employing a very detailed data set covering the whole of the United Kingdom, we find that, over the course of time, many entrants have begun to take advantage of unbundling. LLU entry only had a positive effect on broadband penetration in the early years, and no longer in the recent years as the market reached maturity. In contrast, LLU entry continues to have a positive impact on the quality of the service provided, as entrants differentiate their products upwards compared to the incumbent. We also assess the impact of competition from an alternative form of technology (cable) which is not subject to regulation, and what we discover is that inter-platform competition has a positive impact on both penetration and quality.

Item Type:	Journal Article
Creators:	Creators Email ORCID ORCID Put Code Nardotto, Mattia UNSPECIFIED UNSPECIFIED UNSPECIFIED Valletti, Tommaso UNSPECIFIED UNSPECIFIED UNSPECIFIED Verboven, Frank UNSPECIFIED UNSPECIFIED UNSPECIFIED
URN:	urn:nbn:de:hbz:38-409146
DOI:	10.1111/jeea.12127
Journal or Publication Title:	J. Eur. Econ. Assoc.
Volume:	13
Number:	2
Page Range:	S. 330 - 363
Date:	2015
Publisher:	OXFORD UNIV PRESS
Place of Publication:	OXFORD
ISSN:	1542-4774
Language:	English
Faculty:	Unspecified
Divisions:	Unspecified
Subjects:	no entry
Uncontrolled Keywords:	Keywords Language EMPIRICAL-EVIDENCE; COMPETITION; ACCESS; ENTRY; INFRASTRUCTURE; INVESTMENT Multiple languages Economics Multiple languages
URI:	http://kups.ub.uni-koeln.de/id/eprint/40914