Pro-Competition Regulation in Telecommunications: an Impact Evaluation
pro-competition standardization, asymmetric remedies, significant market power, wholesale market regulation, regulatory policy
This study examines the impact of asymmetric remedies imposed on service providers with Significant Market Power in Brazilian uncompetitive municipalities within the wholesale markets of dedicated lines, high-capacity data transport, and fixed access network infrastructure for data transmission. Employing a combination of Difference-in-Difference analysis and Propensity Score Matching techniques, this inquiry explores how wholesale price regulation influences market concentration, service density, small providers' market share, fiber investments, user grievances, and perceived quality, particularly with respect to pricing and service excellence. The findings unveil a spectrum of effects across diverse remedies and indicators, leading to a proposition advocating the complete deregulation of fixed access network infrastructure for data transmission, the partial deregulation of dedicated lines, and a heightened focus on the pivotal high-capacity data transport wholesale market. Notably, the study underscores the need for robust analysis and careful consideration of the implications of asymmetric remedies on market dynamics and regulatory policy.