Wholesale Markets in Telecommunications

Bourreau, Marc; Hombert, Johan; Pouyet, Jérôme; Schutz, Nicolas

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Wholesale Markets in Telecommunications

CEPR Discussion Paper No. DP6224

52 Pages Posted: 22 May 2008

See all articles by Marc Bourreau

Ecole Nationale des Ponts et Chaussées (ENPC) - Centre d'Enseignement et de Recherche en Analyse Socio-Economique (CERAS); National Institute of Statistics and Economic Studies (INSEE) - Center for Research in Economics and Statistics (CREST); Centre for Economic Policy Research (CEPR)

Nicolas Schutz

University of Mannheim

Date Written: March 2007

Abstract

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

Bourreau, Marc and Hombert, Johan and Pouyet, Jerome and Schutz, Nicolas, Wholesale Markets in Telecommunications (March 2007). CEPR Discussion Paper No. DP6224, Available at SSRN: https://ssrn.com/abstract=1135464