Strategic technology adoption and entry deterrence in broadband

In this article, we examine the role of strategic investment in the US broadband industry. In particular, we provide evidence that cable incumbents adjust their investment strategy in response to fiber entry threat and that these deterrence strategies have been successful particularly in intermediate sized markets. We compile data on broadband deployment and exogenous franchise agreements for potential fiber entrants at the most local level in New York State. The results indicate that strategic cable investment may negatively affect optical fiber diffusion.