Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/265636 
Year of Publication: 
2022
Series/Report no.: 
31st European Conference of the International Telecommunications Society (ITS): "Reining in Digital Platforms? Challenging monopolies, promoting competition and developing regulatory regimes", Gothenburg, Sweden, 20th - 21st June 2022
Publisher: 
International Telecommunications Society (ITS), Calgary
Abstract: 
This paper studies the effects of infrastructure sharing agreements on telecommunications markets. Using a model with an investment stage where firms compete" 'a la Cournot", I find that, infrastructure sharing agreements increase investment at industry level. Indeed, the sharing of infrastructures reduces costs of investment for involved operators and encourage them to invest more. This holds except if involved operators are much less efficient than their competitors (i.e., they have much higher marginal costs before investment). Furthermore, infrastructure sharing agreements generally increase both investments and consumer surplus, except if involved operators are much less efficient than their competitors or if they have very different level of efficiency. The infrastructure sharing agreement is even more effective when the most efficient operators are involved.
Subjects: 
Mobile telecommunications
network sharing
competition
consumer welfare
JEL: 
L40
L96
L11
Document Type: 
Conference Paper

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