Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/101435
Year of Publication: 
2014
Series/Report no.: 
25th European Regional Conference of the International Telecommunications Society (ITS): "Disruptive Innovation in the ICT Industries: Challenges for European Policy and Business" , Brussels, Belgium, 22nd-25th June, 2014
Publisher: 
International Telecommunications Society (ITS), Calgary
Abstract: 
This paper develops a structural model which allows estimating the impact of regulatory decisions looking for the setting of download-speed standards on market structure and performance. We characterize a setting under which quality standards improve both service quality and availability. As to quality, we evaluate the impact of quality standards on the performance of local demand from a detailed database of broadband internet subscribers, discriminated by the main attributes of an internet subscription contract as location, supplier, monthly-fee, download- and upload-speed features. From these results, we are able to identify the effect of quality regulation on the behavior of internet providers in a differentiated product market approach. As a consequence, we are able to assert that the response of internet service providers to quality regulation is a more intense product differentiation that contributes to demand expansion and therefore to improve broadband penetration indicators.
Subjects: 
Regulation
Telecommunication
Information Services
Internet Economics
JEL: 
L51
L96
L86
Document Type: 
Conference Paper

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