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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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Ultra-fast broadband investment and adoption: A survey

Laura Abrardi, +1 more
- 01 Apr 2019 - 
TL;DR: In this paper, the authors review the existing literature on ultra-fast, fiber-based broadband network, devoting special attention to the results and to the methodology used in the most recent studies.
Posted Content

The Endgame of Telecommunications Policy? A Survey

Ingo Vogelsang, +1 more
- 31 Dec 2013 - 
TL;DR: A literature review of the five policy areas (1) termination monopoly, (2) local bottleneck access, (3) net neutrality, (4) spectrum management, and (5) universal service) suggests that in some of them a move to competition policy will soon be the efficient state of the art, while regulation will remain efficient in others for some time as mentioned in this paper.
Journal ArticleDOI

The ladder of investment in Europe, in retrospect and prospect

Martin Cave
- 01 Sep 2014 - 
TL;DR: The ladder of investment was adopted by many European (and other) regulators in the era of copper networks as a means of implementing unbundling in a way which progressively promotes competitive providers' infrastructure investment in fixed networks as mentioned in this paper.
Journal ArticleDOI

The Impact of Alternative Public Policies on the Deployment of New Communications Infrastructure – A Survey

Wolfgang Briglauer, +3 more
- 12 Jan 2015 - 
TL;DR: In this paper, a survey of the theoretical and empirical literature on all alternative policies to promote the deployment of new fiber-based communications infrastructure is presented, where the available policies refer to different kinds of ex ante sector-specific regulations including cost-based access regulations as well as softer regulations such as regulatory holidays or geographically differentiated regulations.
Journal ArticleDOI

Strategic formation and welfare effects of airline-high speed rail agreements

Alessandro Avenali, +3 more
- 01 Nov 2018 - 
TL;DR: In this article, the authors study the strategic formation of airline-high speed rail (HSR) partnerships and their effects on consumer surplus and social welfare, and provide antitrust authorities with a simple two-tier test for the capacity purchase (CP) agreement to improve consumer surplus.
References
More filters
Journal ArticleDOI

Dynamic access pricing and investment in alternative infrastructures

Alessandro Avenali, +2 more
- 01 Mar 2010 - 
TL;DR: In this article, the impact of access price regulation on the entrants' investment in network quality is analyzed in a dynamic framework where developing an alternative infrastructure requires both time and a captive customer base.
Posted Content

Ex ante regulation and co-investment in the transition to next generation access

Marc Bourreau, +2 more
- 01 Jan 2012 - 
TL;DR: In this paper, the authors focus on the migration from the legacy copper network to the NGA infrastructure, and how wholesale pricing regulation might affect this process; the introduction of differentiated wholesale remedies according to geographical differences in NGAN deployment; the impact of co-investment decisions on market outcomes and their interplay with access regulation.
Journal ArticleDOI

Access Regulation and the Timing of Infrastructure Investment

Joshua S. Gans, +2 more
- 27 Sep 1997 - 
TL;DR: In this article, the authors examine infrastructure investment incentives under a system of "regulation by negotiation" and demonstrate that an appropriately specified access pricing rule can induce private firms to choose to invest in infrastructure at a socially optimal time.
Journal ArticleDOI

Market Asymmetries and Investments in Next Generation Access Networks

Roman Inderst, +1 more
- 02 Mar 2012 - 
TL;DR: In this article, the authors investigate firms' incentives to innovate in Next Generation Access Networks and show that a higher regulated access fee for the old technology leads to lower incentive to invest for the firm owning the old access network, while its competitor has stronger incentives to invest.
Journal ArticleDOI

Racing for Investment under Mandatory Access

João Vareda, +1 more
- 25 Jul 2010 - 
TL;DR: In this article, the authors analyze the impact of mandatory access on a race for investments and show that for a low (high) access price, firms wait (preempt each other) while an access price increase tends to accelerate investment in general but may delay the first investment.
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 - 

Strategic choice of financing systems in regulated and interconnected industries

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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.