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How to price the unbundled local loop in the transition from copper to fiber access networks?

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  • Neumann, Karl-Heinz
  • Vogelsang, Ingo

Abstract

In many countries worldwide access networks are in the transition from copper to fiber access. During the transition phase copper and fiber networks are operated in parallel. All regulators facing this situation of technological change have to decide how to price unbundled access to the copper loop in this transition phase. Should they keep the usual forward looking long-run incremental cost standard charge, or should they move to some different approach? The authors propose to price copper access based on the modern equivalent asset (MEA) of fiber access. Since fiber access is superior to copper access, the cost of fiber access (as a basis for pricing copper access) should, however, be corrected by the performance delta between copper and fiber access.

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  • Neumann, Karl-Heinz & Vogelsang, Ingo, 2013. "How to price the unbundled local loop in the transition from copper to fiber access networks?," Telecommunications Policy, Elsevier, vol. 37(10), pages 893-909.
    • Handle: RePEc:eee:telpol:v:37:y:2013:i:10:p:893-909
    DOI: 10.1016/j.telpol.2013.05.011
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    2. Vogelsang Ingo, 2013. "The Endgame of Telecommunications Policy? A Survey," Review of Economics, De Gruyter, vol. 64(3), pages 193-270, December.
    3. Vogelsang, Ingo, 2017. "The role of competition and regulation in stimulating innovation – Telecommunications," Telecommunications Policy, Elsevier, vol. 41(9), pages 802-812.
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    5. Tselekounis, Markos & Orfanou, Georgia & Varoutas, Dimitris, 2014. "Coexistence of copper and fiber unbundling: Access charges and investment incentives," 25th European Regional ITS Conference, Brussels 2014 101400, International Telecommunications Society (ITS).
    6. Neumann, Karl-Heinz & Vogelsang, Ingo, 2013. "How to price the unbundled local loop in the transition from copper to fiber access networks?," Telecommunications Policy, Elsevier, vol. 37(10), pages 893-909.
    7. Viktória KOCSIS & Paul de BIJL & Rob van der NOLL & Bert TIEBEN, 2015. "Reconsidering ex ante Regulation in the Dutch Electronic Communications Market," Communications & Strategies, IDATE, Com&Strat dept., vol. 1(98), pages 61-83, 2nd quart.
    8. Tselekounis, Markos & Xylogianni, Eirini & Varoutas, Dimitris & Martakos, Drakoulis, 2013. "Geographically differentiated NGA deployment," 24th European Regional ITS Conference, Florence 2013 88533, International Telecommunications Society (ITS).

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