The Diffusion of Broadband Telecommunications in the U.S. - The Role of Different Forms of Competition

Communications & Strategies, No. 68, p. 139, 4th Quarter 2007

19 Pages Posted: 4 Mar 2009

See all articles by Mario Denni

Mario Denni

Italian Competition Authority; University of Rome III - Department of Economics

Harald Gruber

European Investment Bank

Date Written: December 1, 2007

Abstract

Panel data analysis for the U.S. states indicates that the speed of broadband diffusion is clearly driven by inter-platform competition while competition on the platform has an ambiguous if not negative impact. The diffusion speed diminishes with the number of firms and the size of the firms. For ADSL lowering the market share of the incumbent is beneficial as long as the market detained by the entrants is not too fragmented. Increasing the density of central offices does point toward faster diffusion whereas upgrading them for equal access plays little role in affecting diffusion speed. The results suggest that regulatory policy should be aimed at creating investment incentives that promote facility-based entry to foster rather inter-platform competition than intra-platform competition.

Keywords: Broadband, diffusion of technology, competition

JEL Classification: L96, D41

Suggested Citation

Denni, Mario and Gruber, Harald, The Diffusion of Broadband Telecommunications in the U.S. - The Role of Different Forms of Competition (December 1, 2007). Communications & Strategies, No. 68, p. 139, 4th Quarter 2007. Available at SSRN: https://ssrn.com/abstract=1353007

Mario Denni (Contact Author)

Italian Competition Authority ( email )

Piazza G. Verdi 6/a
Roma, 00184
Italy

HOME PAGE: http://www.youngeconomists.it/Denni/home.htm

University of Rome III - Department of Economics ( email )

via Ostiense, 139
Rome, 00154
Italy

Harald Gruber

European Investment Bank ( email )

Projects Directorate 100 Boulevard Adenauer
L-2950
Luxembourg
+352 43798606 (Phone)
+352 43798831 (Fax)

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