Abstract
PurposeThe primary purpose of this study is to examine the implications of consolidation in the US cable industry in terms of deployment of advanced broadband services in local markets.Design/methodology/approachThis study estimates a cable operator's deployment of advanced broadband services using a binary probit model of profits from advance broadband services.FindingsThis study finds that larger and more powerful multiple system operators are limited in the transfer of efficiency deployment of advanced broadband services in local markets; therefore, the implications of the efficiency of horizontal integration do not have significant meaning.Originality/valuePrevious literature examined the relationship between horizontal integration, rates and the quality of traditional video services. By examining the relationship between horizontal integration and deployment of advanced cable services in local markets and making a policy suggestion for further consolidations in the US cable industry, this study fills a gap in extant cable industry research.
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