Interconnection of Cable Networks: A Regulation Proposal for Broadband Internet Services

Leitão, João (2006): Interconnection of Cable Networks: A Regulation Proposal for Broadband Internet Services.

Abstract

In this article a brief revision of the European and Portuguese Regulatory frameworks is made, especially in terms of the interconnection of broadband internet services that are offered by cable operators. A formalization with two cable networks is presented, in order to obtain a benchmark for symmetric networks, and two scenarios: collusion and regulated market; are developed. This justifies the implementation of regulatory policies, with the establishment of caps for the interconnection tariffs, in order to assure a larger penetration rate of the broadband internet services and a bigger total welfare.

• Item Type: MPRA Paper
• Language: English
• Keywords: Regulation; Tariffs of Interconnection; Goodwill
• Subjects: L - Industrial Organization > L5 - Regulation and Industrial Policy > L51 - Economics of Regulation; D - Microeconomics > D4 - Market Structure, Pricing, and Design > D40 - General

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