Discussion Paper Details

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Title: Asymmetric Broadband Wholesale Regulation

Author(s): Steffen Hoernig

Publication Date: May 2011

Keyword(s): Access regulation, Cable, Convergence and Copper

Programme Area(s): Industrial Organization

Abstract: Due to technological convergence, multiple infrastructures can now offer broadband or triple-play services, while the existing access regulation is based on a single essential network. We show that continued asymmetric access regulation of one network does not control sufficiently for market power and benefits the unregulated network, and that symmetric regulation would lead to higher consumer surplus. Furthermore, the whole setup of access regulation may not be viable in the long run if regulatory constraints provide strong first-mover advantages to the unregulated network.

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Bibliographic Reference

Hoernig, S. 2011. 'Asymmetric Broadband Wholesale Regulation'. London, Centre for Economic Policy Research.