Do Municipal Broadband Networks Foster Network Competition?: Case Study Evidence from the Netherlands

27 Pages Posted: 6 Feb 2012

See all articles by Bert M. Sadowski

Bert M. Sadowski

Eindhoven University of Technology (TUE)

Marcel de Pender

affiliation not provided to SSRN

Date Written: August 15, 2009

Abstract

Based on expected wider social and economic objectives, municipalities across Europe are increasingly becoming involved in the implementation of broadband networks in their communities since the late 1990s. Since 2003, the European Commission has developed elaborated (market) testing procedures to assess whether these networks are conflicting with State Aid principle of the European Union. The assumption behind these procedures has been that municipal networks might distort competition in broadband markets.

In this context, the paper examines the characteristics of residential users of a municipal broadband network in the Netherlands. It investigates the extent to which competition-related factors and consumer characteristics affect their choice to opt for high speed Internet access. It is based on a survey of about 3000 respondents undertaken in the city of Eindhoven during June and July 2009.The survey was conducted on-line among adult household members with internet access and received a response rate of 31 percent. The data from the survey were complemented with information about the provision of broadband access by alternative service providers.

Suggested Citation

Sadowski, Bert M. and de Pender, Marcel, Do Municipal Broadband Networks Foster Network Competition?: Case Study Evidence from the Netherlands (August 15, 2009). TPRC 2009, Available at SSRN: https://ssrn.com/abstract=1999842

Bert M. Sadowski (Contact Author)

Eindhoven University of Technology (TUE) ( email )

PO Box 513
Eindhoven, 5600 MB
Netherlands
0031402475510 (Phone)

Marcel De Pender

affiliation not provided to SSRN

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