The Effect of Access Regulation on Broadbnd Deployment

作者: Amitay Alter

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摘要: This paper quetions whether or not mandatory unbundling delayed DSL deployment by BellSouth. By exploiting a law change in Kentucky and variation access prices across markets, I find that deregulation triggered deployment, but no evidence affected pace. An upper bound on the welfare loss due to late rural markets is $21 million. The findings are consistent with positive effect of profitability upgrades, can also result from strategic delay which part bargaining between firm regulator.

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