eprintid: 34925 rev_number: 16 eprint_status: archive userid: 1482 importid: 105 dir: disk0/00/03/49/25 datestamp: 2020-05-07 12:23:22 lastmod: 2021-11-13 10:35:06 status_changed: 2021-11-13 10:35:06 type: monograph metadata_visibility: show creators_name: Cojoc, Anca creators_name: Ivaldi, Marc creators_name: Maier-Rigaud, Frank P. creators_name: März, Oliver creators_idrefppn: 058494375 creators_halaffid: 1002422 title: Horizontal cooperation on investment: Evidence from mobile network sharing ispublished: pub subjects: subjects_ECO abstract: We present a structural model to investigate the effects of horizontal cooperation on investment in the context of telecommunication networks. More specifically, we estimate the effect of network sharing in the mobile telecommunications industry on prices, network quality and consumer welfare. The presented framework allows estimating the effects of different types of sharing agreements including common ownership of shared assets in a joint venture company or collaboration via geographical separation (geo-split principle). The proposed identification strategy relies on differences in the costs of network deployment of shared versus non-shared network infrastructure, with different costs affecting operators’ optimal choice of price and network quality. We apply the structural model to estimate the effects of a network sharing agreement in the Czech Republic, using a combination of unique datasets on prices, network quality measured as average download speed and operator’s costs of network deployment. The results of our model indicate that horizontal cooperation on investments may be beneficial for consumers. Specifically, the network sharing agreement under study generated cost savings for the sharing parties, which were passed-on to consumers in the form of lower prices and higher average download speed. Our findings are of relevance to the assessment of network sharing agreements, which, considering the substantial investment cost associated with the 5G technology, are likely to play an even greater role in the telecommunications industry in the future. The findings are also of relevance to the general literature on horizontal cooperation on investments. date: 2020-05 date_type: published publisher: TSE Working Paper official_url: http://tse-fr.eu/pub/124252 faculty: tse divisions: tse keywords: mobile telecommunication networks keywords: network sharing keywords: cooperation on investment keywords: 4G keywords: 5G keywords: horizontal cooperation keywords: empirical industrial organization language: en has_fulltext: TRUE subjectsJEL: JEL_L11 subjectsJEL: JEL_L40 subjectsJEL: JEL_L96 view_date_year: 2020 full_text_status: public monograph_type: working_paper series: TSE Working Paper volume: 20-1100 place_of_pub: Toulouse pages: 45 institution: Université Toulouse 1 Capitole department: Toulouse School of Economics book_title: TSE Working Paper oai_identifier: oai:tse-fr.eu:124252 harvester_local_overwrite: department harvester_local_overwrite: publish_to_hal harvester_local_overwrite: faculty harvester_local_overwrite: pending harvester_local_overwrite: abstract harvester_local_overwrite: pages harvester_local_overwrite: institution harvester_local_overwrite: place_of_pub harvester_local_overwrite: creators_idrefppn harvester_local_overwrite: creators_halaffid oai_lastmod: 2021-11-03T08:55:46Z oai_set: tse site: ut1 publish_to_hal: FALSE citation: Cojoc, Anca, Ivaldi, Marc , Maier-Rigaud, Frank P. and März, Oliver (2020) Horizontal cooperation on investment: Evidence from mobile network sharing. TSE Working Paper, n. 20-1100, Toulouse document_url: https://publications.ut-capitole.fr/id/eprint/34925/1/wp_tse_1100.pdf