Broadband Speeds in Fibered Markets: An Empirical Analysis

29 Pages Posted: 20 May 2015 Last revised: 22 Feb 2021

See all articles by Michael Kotrous

Michael Kotrous

George Mason University - Mercatus Center

James B. Bailey

Providence College Department of Economics

Date Written: January 28, 2021

Abstract

Broadband deployment policies have directly subsidized fiber providers because fiber broadband delivers fast download speeds. This paper examines if recent fiber buildout has increased competition for aDSL and cable incumbents and if entry by a fiber competitor predicts faster incumbent download speeds. Despite significant growth in fiber broadband service in the US between December 2014 and December 2018, we observe that the number of fiber competitors in census blocks with aDSL or cable incumbents remains low. Further, our econometric results suggest that the entry of a rival fiber operator does not explain recent increases in cable and aDSL speeds.

Keywords: wireline broadband, fiber broadband, ISP competition, market entry, broadband speeds

JEL Classification: L96, L86, R12

Suggested Citation

Kotrous, Michael and Bailey, James B., Broadband Speeds in Fibered Markets: An Empirical Analysis (January 28, 2021). The Center for Growth and Opportunity Working Paper, TPRC48: The 48th Research Conference on Communication, Information and Internet Policy, Available at SSRN: https://ssrn.com/abstract=2607729 or http://dx.doi.org/10.2139/ssrn.2607729

Michael Kotrous (Contact Author)

George Mason University - Mercatus Center ( email )

3434 Washington Blvd., 4th Floor
Arlington, VA 22201
United States

HOME PAGE: http://www.mercatus.org/people/michael-kotrous

James B. Bailey

Providence College Department of Economics ( email )

1 Cunningham Sq
Providence, RI 02918
United States

HOME PAGE: http://https://economics.providence.edu/faculty-members/james-bailey/

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