Dark clouds over the Internet?

Prüfer, Jens ORCID: https://orcid.org/0000-0001-7203-9711 and Jahn, Eric (2007) Dark clouds over the Internet? Telecommunications Policy, 31 (3-4). pp. 144-154. ISSN 0308-5961

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Currently, the Internet is characterized by excess capacity, which benefits consumers and producers of Internet-based services alike. High quality and declining prices of interconnection are the basis for many e-commerce, software and equipment businesses. However, tough competition in the Internet backbone market driving these developments could ruin network operators and threaten other markets, too. This paper will pursue the idea of the Internet backbone market's decline based on standard economic theory. The paper will present several scenarios and discuss potential market- and policy-based remedies. It is argued that due to a phenomenon called capacity paradox the industry's future development is overshadowed by "dark clouds".

Item Type: Article
Additional Information: Funding Information: The authors owe thanks to Patrick Herbst, Julia Hirsch, Patricia Prüfer, Uwe Walz and two anonymous referees for very helpful comments and support. They appreciate funding provided through the Internet economics research network of the German Federal Ministry of Education and Research (BMBF).
Uncontrolled Keywords: capacity paradox,industry analysis and outlook,internet backbone market,internet regulation,human factors and ergonomics,information systems,electrical and electronic engineering ,/dk/atira/pure/subjectarea/asjc/3300/3307
Faculty \ School: Faculty of Social Sciences > School of Economics
UEA Research Groups: Faculty of Social Sciences > Research Centres > Centre for Competition Policy
Faculty of Social Sciences > Research Groups > Economic Theory
Faculty of Social Sciences > Research Groups > Industrial Economics
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Depositing User: LivePure Connector
Date Deposited: 08 Sep 2022 12:30
Last Modified: 21 Oct 2023 00:42
URI: https://ueaeprints.uea.ac.uk/id/eprint/87961
DOI: 10.1016/j.telpol.2007.01.004

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