Modalities of Deployment of Telecommunications Infrastructure

This study is aimed at investigating the firm’s decisions about the degree of quality improvements for advanced technology services when other approaches to infrastructure deployment, especially co-investment, act as alternative ways to launch new services. The model developed in this study consider...

Descripción completa

Detalles Bibliográficos
Autor: Correa, Alexander
Tipo de recurso: artículo
Estado:Versión publicada
Fecha de publicación:2017
País:Perú
Institución:Pontificia Universidad Católica del Perú
Repositorio:Revistas - Pontificia Universidad Católica del Perú
Idioma:español
OAI Identifier:oai:ojs.pkp.sfu.ca:article/19795
Acceso en línea:http://revistas.pucp.edu.pe/index.php/economia/article/view/19795
Access Level:acceso abierto
Palabra clave:Infrastructure sharing
telecommunications
co-investment
regulation
despliegue de infraestructura
telecomunicaciones
coinversión
regulación
Descripción
Sumario:This study is aimed at investigating the firm’s decisions about the degree of quality improvements for advanced technology services when other approaches to infrastructure deployment, especially co-investment, act as alternative ways to launch new services. The model developed in this study considers the asymmetry of firms. This study shows that co-investment results in greater consumer welfare than fully distributed cost regulation, even though investment levels in quality improvements are lower. However, compared to individual investment, co-investment produces a deterioration in quality improvements when infrastructure sharing induces a considerable amount of incremental costs. The regulator should monitor co-investment agreements to avoid situations of tacit collusion especially when firms exhibit cost asymmetry in the deployment of advanced technology.