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Access Regulation and the Transition from Copper to Fiber Networks in Telecoms

Marc Bourreau, +3 more
- 08 Oct 2013 - 
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In this paper, the impact of different forms of access obligations on firms' incentives to migrate from the legacy copper network to next generation broadband infrastructures is studied, where the authors analyze geographically differential access prices of copper (that depend on whether or not an alternative fiber network has been deployed in the area).
Abstract: 
In this paper we study the impact of different forms of access obligations on firms’ incentives to migrate from the legacy copper network to next generation broadband infrastructures. We analyze geographically differential access prices of copper (that depend on whether or not an alternative fiber network has been deployed in the area) and ex-ante access obligations for fiber networks. We discuss how these regulatory schemes fare in addressing the tension among different objectives, such as the promotion of static efficiency, fostering investments in new infrastructures, and avoiding unnecessary duplication of (fiber) networks.

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RSCAS 2013/52
Robert Schuman Centre for Advanced Studies
Florence School of Regulation
Access regulation and the transition from copper to
fiber networks in telecoms
Marc Bourreau, Carlo Cambini, Pınar Doğan
European University Institute
Robert Schuman Centre for Advanced Studies
Florence School of Regulation
Access regulation and the transition from copper to fiber
networks in telecoms
Marc Bourreau, Carlo Cambini, Pınar Doğan
EUI Working Paper RSCAS 2013/52
This text may be downloaded only for personal research purposes. Additional reproduction for other
purposes, whether in hard copies or electronically, requires the consent of the author(s), editor(s).
If cited or quoted, reference should be made to the full name of the author(s), editor(s), the title, the
working paper, or other series, the year and the publisher.
ISSN 1028-3625
© Marc Bourreau, Carlo Cambini, Pınar Doğan, 2013
Printed in Italy, July 2013
European University Institute
Badia Fiesolana
I – 50014 San Domenico di Fiesole (FI)
Italy
www.eui.eu/RSCAS/Publications/
www.eui.eu
cadmus.eui.eu
Robert Schuman Centre for Advanced Studies
The Robert Schuman Centre for Advanced Studies (RSCAS), created in 1992 and directed by Stefano
Bartolini since September 2006, aims to develop inter-disciplinary and comparative research and to
promote work on the major issues facing the process of integration and European society.
The Centre is home to a large post-doctoral programme and hosts major research programmes and
projects, and a range of working groups and ad hoc initiatives. The research agenda is organised
around a set of core themes and is continuously evolving, reflecting the changing agenda of European
integration and the expanding membership of the European Union.
Details of the research of the Centre can be found on:
http://www.eui.eu/RSCAS/Research/
Research publications take the form of Working Papers, Policy Papers, Distinguished Lectures and
books. Most of these are also available on the RSCAS website:
http://www.eui.eu/RSCAS/Publications/
The EUI and the RSCAS are not responsible for the opinion expressed by the author(s).
Florence School of Regulation
The Florence School of Regulation (FSR) is a partnership between the Robert Schuman Centre for
Advanced Studies (RSCAS) at the European University Institute (EUI), the Council of the European
Energy Regulators (CEER) and the Independent Regulators Group (IRG). Moreover, as part of the
EUI, the FSR works closely with the European Commission.
The objectives of the FSR are to promote informed discussions on key policy issues, through
workshops and seminars, to provide state-of-the-art training for practitioners (from European
Commission, National Regulators and private companies), to produce analytical and empirical
researches about regulated sectors, to network, and to exchange documents and ideas.
At present, its scope is focused on the regulation of Energy (electricity and gas markets), of
Communications & Media, and of Transport.
This series of working papers aims at disseminating the work of scholars and practitioners on current
regulatory issues.
For further information
Florence School of Regulation
Robert Schuman Centre for Advanced Studies
European University Institute
Via Boccaccio, 151
I-50133 Firenze
Tel.: +39 055 4685 751
Fax: +39 055 4685 755
E-mail: fsr@eui.eu
http://www.eui.eu/RSCAS/ProfessionalDevelopment/FSR/
Citations
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How to fill the digital gap? The (limited) role of regulation

Wolfgang Briglauer, +3 more
- 01 Jan 2016 - 
TL;DR: In this paper, the authors provide evidence on the migration from an "old" technology to a "new" technology, taking into account the impact that regulatory interventions on the old one might have on the incentives to invest and adopt the new one.
Journal ArticleDOI

Dark fiber price regulation in the absence of facilities-based competition

Vitor Miguel Ribeiro
TL;DR: In this paper, the authors evaluate which wholesale price control method should be applied considering that the market structure of the telecommunications industry is the monopolistic bottleneck and three regulatory options are tested against each other: active-minus regulation, cost-based regulation applied to both layers of the segmented vital input and equivalence of inputs.
Journal ArticleDOI

L’investimento nelle reti NGA a larga banda: la "questione settentrionale"

Nicola Matteucci
TL;DR: In this article, the authors investigated the widespread market failures characterizing Italian NGAN roll-out, the possible solutions and the technical and financial feasibility of the proposed plans -both private and public.
Journal ArticleDOI

The impact of regulation and competition on the migration from old to new communications infrastructure : recent evidence from EU27 member states

Wolfgang Briglauer
- 15 Oct 2014 - 
TL;DR: In this paper, the role of regulatory policies and competition controlling for relevant supply and demand side factors was examined in the context of next-generation communications networks, and the authors found that relevant forms of previous broadband access regulations have had a negative impact on investment in new infrastructure and that competition from mobile operators and the replacement effect stemming from the incumbents' existing infrastructure exert a negative effect on ex ante investment incentives.
Journal ArticleDOI

Strategic choice and broadband divergence in the transition to next generation networks: Evidence from Canada and the U.S.

Reza Rajabiun, +1 more
- 24 Aug 2017 - 
TL;DR: In this article, the authors investigate how infrastructure competition among broadband network infrastructure operators in Canada and the U.S. has influenced their incentives to increase fixed broadband connection speeds and invest in next generation fiber-to-the-premises (FTTP) technologies.
References
More filters
Posted Content

Network externalities, competition, and compatibility

Michael L. Katz
- 01 Jan 1985 - 
Posted Content

Broadband Infrastructure and Economic Growth

Nina Czernich, +3 more
- 01 Jan 2009 - 
TL;DR: In this paper, the authors estimate the effect of broadband infrastructure, which enables high-speed internet, on economic growth in the panel of OECD countries in 1996-2007, and find that a 10 percentagepoint increase in broadband penetration raises annual per-capita growth by 0.9-1.5 percentage points.
Journal ArticleDOI

Broadband investment and regulation: A literature review

Carlo Cambini, +1 more
- 01 Nov 2009 - 
TL;DR: In this paper, the authors survey the relevant theoretical and empirical literature on the relationship between regulation, at both retail and wholesale level, and investment in telecoms infrastructures, and conclude that the picture that emerges is not conclusive, and further research is still needed, both theoretically and empirically, to better understand the real impact of regulatory incentives on investments.
Journal ArticleDOI

Strategic investments with spillovers, vertical integration and foreclosure in the broadband access market

Øystein Foros
- 01 Jan 2004 - 
TL;DR: In this paper, the authors analyse competition between two retailers of broadband access when they differ in their ability to offer value-added services, and show that access price regulation may lower consumer surplus and welfare if retailers do not differ too much.
Journal ArticleDOI

Access Pricing, Competition, and Incentives to Migrate From "Old" to "New" Technology

Marc Bourreau, +2 more
- 01 Nov 2012 - 
TL;DR: In this paper, the authors analyze the incentives of an incumbent and an entrant to migrate from an "old" technology to a "new" technology, and discuss how the terms of wholesale access affect this migration.
Related Papers (5)

Access regulation and the transition from copper to fiber networks in telecoms

Marc Bourreau, +2 more
- 20 Feb 2014 - 

Dynamic access pricing and investment in alternative infrastructures

Alessandro Avenali, +2 more
- 01 Mar 2010 - 

Geographic Access Rules and Investments

Marc Bourreau, +3 more
- 01 Jun 2012 - 

Unbundling and infrastructure competition for broadband adoption

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- 01 Sep 2014 - 

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- 01 Feb 2005 - 
Frequently Asked Questions (6)
Q1. What are the objectives of the Robert Schuman Centre for Advanced Studies?

The objectives of the FSR are to promote informed discussions on key policy issues, through workshops and seminars, to provide state-of-the-art training for practitioners (from European Commission, National Regulators and private companies), to produce analytical and empirical researches about regulated sectors, to network, and to exchange documents and ideas. 

At present, its scope is focused on the regulation of Energy (electricity and gas markets), of Communications & Media, and of Transport. 

The Robert Schuman Centre for Advanced Studies (RSCAS), created in 1992 and directed by Stefano Bartolini since September 2006, aims to develop inter-disciplinary and comparative research and to promote work on the major issues facing the process of integration and European society. 

The research agenda is organised around a set of core themes and is continuously evolving, reflecting the changing agenda of European integration and the expanding membership of the European Union. 

Florence School of Regulation Robert Schuman Centre for Advanced Studies European University Institute Via Boccaccio, 151 I-50133 Firenze Tel.: +39 055 4685 751 Fax: +39 055 4685 755 E-mail: fsr@eui.eu http://www.eui.eu/RSCAS/ProfessionalDevelopment/FSR/ aa w~0.400 a 0.1 0.2 0.3 0.40.200.300.100.00 

Details of the research of the Centre can be found on: http://www.eui.eu/RSCAS/Research/Research publications take the form of Working Papers, Policy Papers, Distinguished Lectures and books.