Modalities of Deployment of Telecommunications Infrastructure

• Autor: Correa, Alexander
• Formato: artículo
• Fecha de Publicación: 2017
• Institución: Pontificia Universidad Católica del Perú
• Repositorio: Revistas - Pontificia Universidad Católica del Perú
• Lenguaje: español
• OAI Identifier: oai:ojs.pkp.sfu.ca:article/19795
• Enlace del recurso: http://revistas.pucp.edu.pe/index.php/economia/article/view/19795
• Nivel de acceso: acceso abierto
• Materia: Infrastructure sharing; telecommunications; co-investment; regulation; despliegue de infraestructura; telecomunicaciones; coinversión; regulación

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.