Abstract
What type of broadband competition has produced the best results for European consumers? To answer this question, the authors compare different types of competition for their impacts on both price and speed, using data from the EU27 countries for 2008–2011. They examine both inter-platform (DSL, cable, fiber, satellite, and wireless local loop) and intra-platform (unbundled local loop [ULL], bitstream, and resale) competition. The authors find that inter-platform competition and ULL access-based entry are both associated with lower prices and higher speeds, with inter-platform competition having the greater impact, and ULL being the most effective form of intra-platform competition.
The text of this article is only available as a PDF.
Bibliography
Bouckaert, Jan, Theon van Dijk, and Frank Verboven.
“Access Regulation, Competition, and Broadband Penetration: An International Study.”
Telecommunications Policy
34
(2010
): 661
–671
.Calzada, Joan and Fernando Martínez.
“Broadband Prices in the European Union: Competition and Regulation.”
Working paper, Research Institute of Applied Economics
, Sept. 2013
. Last accessed Dec. 2, 2013, http://www.ub.edu/irea/working_papers/2013/201309.pdf.Case Associates
. “How Competition Affects Broadband Speed: New Empirical Evidence from the EU27.”
White paper, Feb. 2013
. Accessed Dec. 3, 2013, http://www.casecon.com/wp-content/uploads/Casenote-How-competition-affects-broadband-penetration-and-speed-Feb20133.pdf#!.Cincera, Michele, Dewulf Lauriane, and Antonio Estache.
“On the (In)Effectiveness of Policies to Promote Broadband Diffusion in Europe (2003–2010): An Econometric Assessment.”
ECARES Working Paper 2012–032, Sept. 2012
. Last accessed Dec. 2, 2013, https://dipot.ulb.ac.be/dspace/bitstream/2013/128909/1/2012–032-CINCERA_DEWULF_ESTACHE-ineffectiveness.pdf.Commission of the European Communities
. Communication from the Commission to the Council, The European Parliament, The European Economic and Social Committee and the Committee of the Regions
. Progress Report on the Single European Electronic Communications Market (14th Report)
, SEC(2009)376/2, July, 30, 2009
.Crandall, Robert W., Jeffrey A. Eisenach, and Allan T. Ingraham.
“The Long-Run Effects of Copper-Loop Unbundling and the Implications for Fiber.”
Telecommunications Policy
37
(2013
): 262
–281
.European Commission
. “Digital Agenda for Europe: Download Data.”
Accessed Dec. 3, 2013
, https://ec.europa.eu/digital-agenda/en/download-data.European Commission
. “Digital Agenda Scoreboard 2013: Electronic Communications Market Indicators: Definitions, Methodology and Footnotes on Member State Data.”
Report/study, July 2, 2013
. Last accessed Dec. 2, 2013, http://ec.europa.eu/information_society/newsroom/cf/dae/document.cfm?doc_id=2376.European Parliament and Council of Europe
. Unbundled Access to the Local Loop
. Regulation (EC) No 2887/2000, Dec. 18, 2000
. Accessed Dec. 3, 2013, http://europa.eu/legislation_summaries/information_society/internet/l24108j_en.htm.Federal Communications Commission
. “Types of Broadband Connections.”
Last accessed Dec. 2, 2013
, http://www.broadband.gov/broadband_types.html.Gruber, Harald and Pantelis Koutroumpis
. “Competition Enhancing Regulation and Diffusion of Innovation: The Case of Broadband Networks.”
Journal of Regulatory Economics
43
(2013
): 168
–195
.Höffler, Felix.
“Cost and Benefits from Infrastructure Competition. Estimating Welfare Effects from Broadband Access Competition.”
Telecommunications Policy
31
(2007
): 401
–418
.Nardotto, Mattia, Tommaso Valletti, and Frank Verboven.
“Unbundling the Incumbent: Evidence from UK Broadband.”
Working paper (2012
). Accessed Dec. 2, 2013, http://www.econ.kuleuven.be/public/ndbad83/frank/Papers/LLU%20first%20draft.pdf.Ofcom
. “Average Broadband Speed Is Still Less than Half Advertised Speed.”
Report, Mar. 2, 2011
. Accessed Dec. 3, 2013, http://consumers.ofcom.org.uk/2011/03/average-broadband-speed-is-still-less-than-half-advertised-speed/.Author notes
*
Professor, Birkbeck, University of London.
†
Analyst, Frontier Economics.
‡
Consultant, Frontier Economics.
▽
Consultant, Frontier Economics.
Copyright © 2013 The Pennsylvania State University
2013
The Pennsylvania State University
This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
