Discussion paper

DP6224 Wholesale Markets in Telecommunications

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.


Pouyet, J, J Hombert and N Schutz (2007), ‘DP6224 Wholesale Markets in Telecommunications‘, CEPR Discussion Paper No. 6224. CEPR Press, Paris & London. https://cepr.org/publications/dp6224