Modalities of Deployment of Telecommunications Infrastructure

  • Alexander Correa Universidad Jorge Tadeo Lozano
    Doctorando en Modelado en Gestión y Política Pública, Universidad Jorge Tadeo Lozano.
Keywords: Infrastructure sharing, telecommunications, co-investment, regulation

Abstract

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.

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How to Cite
Correa, A. (2017). Modalities of Deployment of Telecommunications Infrastructure. Economia, 40(80), 71-98. Retrieved from https://revistas.pucp.edu.pe/index.php/economia/article/view/19795