Competition and its Impact on Investment in Telecommunications Networks in a Digital Environment

Authors

  • Rebeca Escobar-Briones Instituto Federal de Telecomunicaciones
  • Núbia M. Conde-Menchaca Instituto Federal de Telecomunicaciones

DOI:

https://doi.org/10.26512/lstr.v12i2.34691

Keywords:

Investment. Economic Competition. Networks. Telecommunications.

Abstract

Purpose ”“ The study establishes the determinants of investment in fixed broadband networks and, in particular, to evaluate the impact of economic competition on it, we present a panel model on fourteen countries, including four Latin American. The model uses quarterly data for the period from 2013 to 2018.

Methodology ”“ The adopted approach is based on the debate on the relationship between competition and investment, on economic theory, and on findings of studies on the association within investment and competition oriented to European countries and the United States.

Findings ”“ Derived from the results, evidence is provided on the existence of a positive relationship between competition and speed of fixed broadband services. The analysis identifies that competition, in services as well as between networks, is favorable for the investment of fixed broadband services. Likewise, the expansion of digital audiovisual entertainment services, the penetration of IoT services, and the higher penetration of mobile broadband, favorably influence investment in networks.

Practical Implications ”“ This result provides useful information for policy design in the telecommunications sector. Encouraging network expansion, some regulatory recommendations are to be presented. Additionally, this study provides information for countries that have not been included in this topic, specifically Mexico and others in the Latin American region.

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Author Biographies

Rebeca Escobar-Briones, Instituto Federal de Telecomunicaciones

Centro de Estudios ”“ Instituto Federal de Telecomunicaciones. Investigadora en Competencia Económica del IFT. Experta en regulación, competencia y telecomunicaciones, cuenta con diversas publicaciones en esas materias. Fue Candidata a Comisionada para el IFT y la COFECE en 2013 y 2016. Es maestra en Política Pública (ITAM), tiene un postgrado en Administración (U. Católica de Lovaina), y es egresada de la Licenciatura de Economía (ITAM). E-mail: rebeca.escobar@ift.org.mx.  

Núbia M. Conde-Menchaca, Instituto Federal de Telecomunicaciones

Centro de Estudios ”“ Instituto Federal de Telecomunicaciones. Subdirectora de Investigación. Con experiencia en investigaciones, UNAM. Cuenta con estudios de Maestría en Economía de la Tecnología (DEPFE-UNAM) y es egresada de la Licenciatura en Economía (UNAM). E-mail: nubia.conde@ift.org.mx.

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Published

2020-10-13

How to Cite

ESCOBAR-BRIONES, Rebeca; M. CONDE-MENCHACA, Núbia. Competition and its Impact on Investment in Telecommunications Networks in a Digital Environment. Law, State and Telecommunications Review, [S. l.], v. 12, n. 2, p. 64–90, 2020. DOI: 10.26512/lstr.v12i2.34691. Disponível em: https://periodicos.unb.br/index.php/RDET/article/view/34691. Acesso em: 14 dec. 2024.