Policy Constellation Matters: Evidence from Investment in the Telecommunications Industry in European Countries

28 Pages Posted: 6 Apr 2016

See all articles by Woohyun Shim

Woohyun Shim

University of Trento; Michigan State University - Department of Telecommunication

Date Written: March 2016

Abstract

Various forms of regulation affecting investment in the telecommunications industry have been investigated thoroughly. However, previous literature has largely overlooked the issue of regulatory constellation. Using data for 28 European countries for the period between 1997 and 2010, this study explores how price regulation on fixed and mobile networks affects the overall investment incentives in the telecommunications sector, and how various regulations interact. Results from fixed-effects panel data analysis show that the effect of price regulation on investment activities on fixed or mobile networks could be positive, zero or negative. The effect depends on the type of price regulation on other networks. To promote investment incentives, therefore, price regulation on different types of networks should be carefully aligned with each other.

Keywords: Policy constellation, Investment, Price regulation, Marginal effect

Suggested Citation

Shim, Woohyun, Policy Constellation Matters: Evidence from Investment in the Telecommunications Industry in European Countries (March 2016). International Telecommunications Policy Review, Vol. 23, No. 1, 2016. Available at SSRN: https://ssrn.com/abstract=2756981

Woohyun Shim (Contact Author)

University of Trento ( email )

Via Sommarive 14
Trento, TN Trento 38123
Italy

Michigan State University - Department of Telecommunication ( email )

409 Communication Arts & Sciences Building
East Lansing, MI 48824-1212
United States

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