Fiber Deployment in Spain

UB Economics Working Papers E17/364

22 Pages Posted: 25 Jul 2017 Last revised: 17 Oct 2017

See all articles by Joan Calzada

Joan Calzada

University of Barcelona - Department of Political Economics

Begoña Garcia-Mariñoso

Comisión Nacional de los Mercados y la Competencia (CNMC)

Jordi Ribé

Comisión Nacional de los Mercados y la Competencia (CNMC)

Rafael Rubio-Campillo

Comisión Nacional de los Mercados y la Competencia (CNMC)

David Suarez

Comisión Nacional de los Mercados y la Competencia (CNMC)

Date Written: July 18, 2017

Abstract

Next generation access networks will be critical for future economic growth and access to these infrastructures will have major consequences for territorial and social cohesion. This paper examines the economic and regulatory determinants that serve as incentives for operators to invest in fiber-to-the-home technology. We draw on a dataset comprising 6,063 Spanish municipalities with access to broadband services to examine the incumbents’ (Telefónica) deployment of fiber in the period 2010-13. We show that local loop unbundling competition had a strong positive impact on Telefónica’s fiber deployment, while bitstream competition had a negative effect. Moreover, the incumbent was more likely to invest in municipalities with a large presence of cable operators. We also consider how the municipalities’ sociodemographic characteristics affected the operator’s deployment decision. While market size and population density had a positive effect on investment, the level of unemployment and the percentage of elderly population had a negative impact.

Keywords: Fiber, Broadband, Competition, Regulation, Telecommunications, Municipalities

JEL Classification: L12, L13, L51, L52, L96

Suggested Citation

Calzada, Joan and Garcia-Mariñoso, Begoña and Ribé, Jordi and Rubio-Campillo, Rafael and Suarez, David, Fiber Deployment in Spain (July 18, 2017). UB Economics Working Papers E17/364, Available at SSRN: https://ssrn.com/abstract=3006485 or http://dx.doi.org/10.2139/ssrn.3006485

Joan Calzada (Contact Author)

University of Barcelona - Department of Political Economics ( email )

Av. Diagonal, 696
Barcelona, 08034
Spain
+34 93 402 1933 (Phone)
+34 93 402 4573 (Fax)

Begoña Garcia-Mariñoso

Comisión Nacional de los Mercados y la Competencia (CNMC) ( email )

Alcala 47
Madrid, Madrid 28014
Spain

Jordi Ribé

Comisión Nacional de los Mercados y la Competencia (CNMC) ( email )

Alcala 47
Madrid, Madrid 28014
Spain

Rafael Rubio-Campillo

Comisión Nacional de los Mercados y la Competencia (CNMC) ( email )

Alcala 47
Madrid, Madrid 28014
Spain

David Suarez

Comisión Nacional de los Mercados y la Competencia (CNMC) ( email )

Alcala 47
Madrid, Madrid 28014
Spain

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