Bandwidth Markets
Lehr, Internet Bandwidth, CITI Conference
Excess capacity?
- Qwest, Level 3, ….
- Generic capacity planning problem
- optimal dynamic investment: install ahead of need
- demand uncertainty (market share, customer response)
Sustainability of pricing equilibrium?
- Facilities competition:
- Collusion among facilities providers? Monopoly pricing
- Competition and commodity product => p=MC=0….
- Value added services and product differentiation
- Generic excess capacity, local scarcity...