Ultrabroadband Competition in Two-Sided Markets

Abstract: In this paper we study the competition among triple play operators, each one characterised by different attributes. We propose a mathematical model which analyses the impact of convergence between communication and telecommunication platforms on their pricing strategies. Key words: ultrabroadband innovation, two-sided platforms, triple play, telecommunication and communication industries. he paper is based on the multi-sided platform analysis (ARMSTRONG, 2004; CALABRESE et al., 2006; DOGANOGLU & WRIGHT, 2005; ROCHET & TIROLE, 2004a-b; and SCHIFF, 2003), that is on platforms that allow the interconnection of two different categories of players as, in the case of telecommunication and media industries, content providers and/or advertisers on one side of the platform and users (readers/viewers) on the other side (ARMSTRONG, 1999, 2005; GABSZEWICZ et al., 2005). The iteration between different clusters of users may be influenced by indirect network-effects, by strategic choices of the platforms (WRIGHT