DP6224 Wholesale Markets in Telecommunications
| Author(s): | Marc Bourreau, Johan Hombert, Jérôme Pouyet, Nicolas Schutz |
| Publication Date: | March 2007 |
| Keyword(s): | telecommunications, upstream and downstream markets, vertical integration |
| JEL(s): | L13, L51 |
| Programme Areas: | Industrial Organization |
| Link to this Page: | cepr.org/active/publications/discussion_papers/dp.php?dpno=6224 |
In telecommunications some operators have deployed their own networks whereas some others have not. The latter firms must purchase wholesale products from the former to be able to compete on the final market. We show that, even when network operators compete in prices and offer perfectly homogenous products on the wholesale market, that market may not be competitive. Based on our theoretical analysis, we derive some policy implications for the broadband and the mobile telephony markets.