Location of Repository

The Effect of Access Regulation on Broadbnd Deployment

By Amitay Alter


This paper quetions whether or not mandatory unbundling delayed DSL deployment by BellSouth. By exploiting a law change in Kentucky and variation in access prices across markets, I find that deregulation in Kentucky triggered deployment, but no evidence that access prices affected deployment pace. An upper bound on the welfare loss due to late deployment in rural markets is $21 million. The findings are consistent with a positive effect of deregulation on the profitability of upgrades, but can also result from a strategic delay which is part of the bargaining between the firm and the regulator.Access regulation; Broadband; Hazard model; Technology adoption

OAI identifier:

Suggested articles



  1. (2005). Broadband Penetration: An Empirical Analysis of State and Federal Policies.”Brookings Working Paper. Revision21.tex; 12/01/2007; 14:04;
  2. (2004). Do Unbundling Policies Discourage CLEC Facilities-Based Investment”,
  3. (2005). Pricing Capital under Mandatory Unbundling and Facilities Sharing”,
  4. (2004). Quantifying the Benefits of Entry into Local Phone Service” Working Paper,
  5. (2002). Resolving Policy Chaos
  6. (2002). Subsidies, the Value of Broadband, and the Importance of Fixed Costs,” in Broadband: Should we Regulate High-Speed Internet Access?, Robert Crandall
  7. (2001). The need for speed in emerging communications markets: upgrades to advanced technology at Internet Service Providers”,
  8. (1995). The role of antitrust in telecommunications,” The Antitrust Bulletin.
  9. (2003). The supply side of the digital divide: Is there equal availability in the broadband Internet access market?,”

To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.