Internet Districts in Italy: Is Proximity an Antidote Against Weak Broadband Competition?

Modern Economy, Vols. 2-3, pp. 403-411, July 2011

Posted: 12 Mar 2012

See all articles by Emanuele Giovannetti

Emanuele Giovannetti

Anglia Ruskin University - Institute for International Management Practice, LAIBS

Alessio D'Ignazio

University of Cambridge - Faculty of Economics and Politics

Date Written: July 20, 2011

Abstract

We study the effects of proximity in the interconnections between Internet providers participating at the three main Italian Internet Exchange Points. We find that geographical proximity plays a role in driving Internet Providers’ interconnection, positively affecting the likelihood of an agreement. This suggests the existence of localized positive externalities in the form of mutual knowledge and reputation, one of the cited drivers underlying the formation of districts in non high-tech industries. We interpret these results as resulting from the necessity for cooperation in interconnection between smaller providers facing the weak competitiveness of the highly concentrated Italian broadband access market.

Suggested Citation

Giovannetti, Emanuele and D'Ignazio, Alessio, Internet Districts in Italy: Is Proximity an Antidote Against Weak Broadband Competition? (July 20, 2011). Modern Economy, Vols. 2-3, pp. 403-411, July 2011. Available at SSRN: https://ssrn.com/abstract=2019719

Emanuele Giovannetti (Contact Author)

Anglia Ruskin University - Institute for International Management Practice, LAIBS ( email )

East Road
Cambridge, Cambridgeshire CB1 1PT
United Kingdom

HOME PAGE: http://anglia.ac.uk/ruskin/en/home/faculties/aibs/staff_profiles/all_staff/emanuele_giovannetti.html

Alessio D'Ignazio

University of Cambridge - Faculty of Economics and Politics ( email )

Austin Robinson Building
Sidgwick Avenue
Cambridge, CB3 9DD
United Kingdom

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