Co-investment in the Sharing of Telecommunications Infrastructure

Abstract

This paper studies the effects of infrastructure sharing agreements on telecommunications markets. Using an oligopoly model with an investment stage where firms compete " à la Cournot", I find that provided no firm is excluded, infrastructure sharing agreements decrease prices, increase consumer surplus and subscriptions, however, it does not necessarily increase producers surplus nor welfare. The infrastructure sharing agreement is all the more effective when the most efficient operators are involved.