Wholesale Markets in Telecommunications
52 Pages Posted: 22 May 2008
Date Written: March 2007
In telecommunications some operators have deployed their own networks whereas some others have not. The latter firms must purchase wholesale products from the former to be able to compete on the final market. We show that, even when network operators compete in prices and offer perfectly homogenous products on the wholesale market, that market may not be competitive. Based on our theoretical analysis, we derive some policy implications for the broadband and the mobile telephony markets.
Keywords: Telecommunications, upstream and downstream markets, vertical integration
JEL Classification: L13, L51
Suggested Citation: Suggested Citation