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Broadband prices in the European Union: competition and commercial strategies

This is a research report on Broadband prices in the European Union: competition and commercial strategies uploaded by Ayesha Shaikh in category: All Documents »  Case Study »  Cases in Operations section of our research repository.
340 views, 0 comments, Last Update: May 4, 2015.
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Tags: INTRODUCTION , Literature review and European broadband market , Estimation strategy , The data , Estimation and results
Description:
This paper analyses the determinants of broadband Internet access prices
in a group of 15 EU countries between 2008 and 2011. Using a rich panel
dataset of broadband plans, we show the positive effect of downstream
speed on prices, and report that cable and fibre-to-the-home technologies
are available at lower prices per Mbps than xDSL technology. Operators’
marketing strategies are also analysed as we show how much prices rise
when the broadband service is offered in a bundle with voice telephony
and/or television, and how much they fall when download volume caps
are included. The most insightful results of this study are provided by a
group of metrics that represent the situation of competition and entry
patterns in the broadband market. We show that consumer segmentation
positively affects prices. On the other hand, broadband prices are higher
in countries where entrants make greater use of bitstream access and lower
when they use more intensively direct access (local loop unbundling).
However, we do not find a significant effect of inter-platform competition
on prices.



 

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