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“Ownership Structure of Cable Networks and Competition in Local Access”

29-04-2005
Duarte Brito and Pedro Pereira

“Ownership Structure of Cable Networks and Competition in Local Access”

Resumo WP n.º 9:
In this paper, we discuss the role of cable television networks and their ownership structure in promoting competition in the local access market. First, we show that the dual ownership of a local telephone network and a cable network, compared with separate ownership, may increase or decrease incentives to invest in upgrading the cable television network. Second, we argue that separate ownership of the two networks is important to promote competition in local access.