Faculty of Economics and Business Administration Publications Database

Network Investment, Access and Competition

Peitz, Martin
Volume: 36
Number: 5
Pages: 407 - 418
Month: June
ISSN-Print: 0308-5961
Link External Source: Online Version
Year: 2012
Keywords: Telecommunication; NGN; Access surcharge; Investment; Innovation; Contracts between network operators
Abstract: This paper analyzes the role of different contract types and access regulation on innovation and competition in telecommunications in the context of Next Generation Access Networks. Within a standard duopoly model, it is shown that ex-post access contracts lead less often to the duplication of investment, but to a wider roll-out compared to a market in which such contracts cannot be offered. In comparison to such ex-post contracts, ex-ante contracts lead to an even wider roll-out, but to a less frequent duplication of investments. Ex-ante contracts in particular, but also ex-post contracts, can be used to dampen competition.