Monday, May 20, 2013
Posted by D. Daniel Sokol
Xavier Fageda (Faculty of Economics, University of Barcelona), Rafael Rubio (Faculty of Economics, University of Barcelona) and Montserrat Termes (Faculty of Economics, University of Barcelona) ask Determinants of Broadband Access: Is Platform Competition always the Key Variable to Success?
ABSTRACT: Previous studies have identified the rivalry among technological platforms as one of the main driving forces of broadband services penetration. This paper draws on data from the Spanish market between 2005 and 2011 to estimate the main determinants of broadband prices. Controlling for broadband tariffs features and network variables, we examine the impact of the different modes of competition on prices. We find that inter-platform competition has no significant effects over prices, while intra-platform competition is a key driver of the prices charged in the broadband market. Our analysis suggests that the impact of different types of competition on prices is critically affected by the levels of development of the broadband market achieved by the considered country.