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IR13-009_Calzada.pdf (797.92 KB)

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Working paper

Publication date

2013

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cc-by-nc-nd, (c) Calzada et al., 2013
Please use this identifier to cite or link to this item: https://hdl.handle.net/2445/57628

Broadband prices in the European Union : competition and commercial strategies

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Abstract

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 x DSL 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.

Subject

Telecomunicació, Comunicacions digitals, Televisió digital, Control de preus, Internet

Subject (English)

Telecommunication, Digital communications, Digital television, Price control, Internet

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Documents de treball (Institut de Recerca en Economia Aplicada Regional i Pública (IREA))

Citation

CALZADA, Joan and MARTÍNEZ SANTOS, Fernando. Broadband prices in the European Union : competition and commercial strategies. IREA – Working Papers. 2013. Vol.  IR13/09. ISSN 2014-1254. [consulted: 11 of August of 2026]. Available at: https://hdl.handle.net/2445/57628

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