Facility- and service-based competition and investment in fixed broadband networks: Lessons from a decade of access regulations in the European Union member states

Abstract

This paper employs firm-level panel data of 57 incumbent and entrant firms for 23European countries in the decade from 2003 to 2012. We examine the impact of service-and facility-based competition on firm level investment as well as the strategic effects underlying infrastructure investment decisions. At the same time we explicitly model the structural dynamics of broadband investment using dynamic panel estimation techniques. We find that facility-based competition exerts a positive and significant impact on both incumbents and entrants implying that incumbents' and entrants' investment decisions are strategic complements. Moreover, this strategic complementarity is much more pronounced with respect to the entrants. Finally, we show that service-based competition appears to have no significant impact on the investment decision of incumbents and entrants and that there is no supportive evidence for the so-called "ladder of investment" hypothesis. With respect to the later phase of market regulation, service-based competition exerts a negative impact on entrants' investment.

Performance Measurement for New Mobile Data Services During Generation Upgrading Period: A Case of China's Telecom Industry

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Technology Antecedents of the Platform-Based Ecosystemic Business Models beyond 5G

“…The existing 5G studies focus on traditional MNO business models and discuss 5G in rather technical and general terms, mostly at the industry level. From technical perspective, focus has been on analyzing the cost, coverage and rollout implications of 5G networks, e.g., highlighting the impact of spectrum and infrastructure deployment [61], network densification [62], strategies for infrastructure sharing [63], fixed-mobile substitution [64], neutral host deployments of small cells [65], and integration of mmWave and WLAN bands [66].…”

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“…With mobile telecommunication investment cases in Africa from 2001 to 2011, Goodiel et al [14] tried to provide a framework to analyze the influence factors of telecom investment. Based on the operational data of 23 European operators from 2003 to 2012, Wolfgang et al [7] proposed a flexible accelerator model to analyze the investment of broadband service and investigated the effects of market competition and strategies on telecom investment. During the upgrading period of new generation networks, network investment performance is the key factor for the deployment of the new generation networks and also the important power to drive the new services.…”

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