The Market Structure of Broadband Telecommunications

Posted: 10 Oct 2000 Last revised: 22 Dec 2013

See all articles by Gerald R. Faulhaber

Gerald R. Faulhaber

University of Pennsylvania - Wharton School

Christiaan Hogendorn

Wesleyan University - Department of Economics

Abstract

The recent growth of the Internet is creating markets for broadband telecommunications networks. In the past, virtually all such 'infrastructure' networks have been subject to government regulation. Two reasons advanced for this market intervention are (i) such networks constitute a natural monopoly, and (ii) to achieve 'universal service', in which all citizens have access to services. In this paper, we develop a model and estimate it using engineering data which tests if these two hypotheses are likely to obtain for broadband networks. We find that oligopolistic competition is likely to emerge for demand levels approaching that of today's cable television.

Suggested Citation

Faulhaber, Gerald R. and Hogendorn, Christiaan, The Market Structure of Broadband Telecommunications. Journal of Industrial Economics, Vol. 48, No. 3, September 2000. Available at SSRN: https://ssrn.com/abstract=241999

Gerald R. Faulhaber (Contact Author)

University of Pennsylvania - Wharton School ( email )

Steinberg-Dietrich Hall
Suite 1400
Philadelphia, PA 19104-6372
United States
215-898-7860 (Phone)

Christiaan Hogendorn

Wesleyan University - Department of Economics ( email )

238 Church Street
Middletown, CT 06459-0007
United States
860-685-2108 (Phone)
860-685-2301 (Fax)

Register to save articles to
your library

Register

Paper statistics

Abstract Views
1,867
PlumX Metrics