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The Market Structure of Broadband Telecommunications

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 natura...

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Published in:	The Journal of industrial economics 2000-09, Vol.48 (3), p.305-329
Main Authors:	Faulhaber, Gerald R., Hogendorn, Christiaan
Format:	Article
Language:	English
Subjects:	Broadband Broadband transmission Capacity costs Competition Cost estimates Cost structure Economic competition Economic models Economic theory Housing demand Market demand Monopolies Nash equilibrium Publishing industry Regulation Studies Telecommunications
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container_issue	3
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container_title	The Journal of industrial economics
container_volume	48
creator	Faulhaber, Gerald R. Hogendorn, Christiaan
description	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.
doi_str_mv	10.1111/1467-6451.00125
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source	EconLit s plnými texty; EBSCOhost Business Source Ultimate; International Bibliography of the Social Sciences (IBSS); Wiley-Blackwell Read & Publish Collection; PAIS Index; JSTOR
subjects	Broadband Broadband transmission Capacity costs Competition Cost estimates Cost structure Economic competition Economic models Economic theory Housing demand Market demand Monopolies Nash equilibrium Publishing industry Regulation Studies Telecommunications
title	The Market Structure of Broadband Telecommunications
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