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The ladder of investment in Europe, in retrospect and prospect

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  • Cave, Martin

Abstract

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. The paper reviews the evidence of its application and effects, in comparison with the most likely alternative, argues that it probably conferred benefits. In the more recent era of transition to fibre in Europe, regulatory priorities have shifted towards promoting roll-out. Two broad approaches are identified; one continues the focus on a programme of infrastructure competition in taking fibre to the home; another, relying on fibre to the cabinet, reverses it with bitstream used as the access product. It is soon to evaluate the two approaches.

Suggested Citation

  • Cave, Martin, 2014. "The ladder of investment in Europe, in retrospect and prospect," Telecommunications Policy, Elsevier, vol. 38(8), pages 674-683.
    • Handle: RePEc:eee:telpol:v:38:y:2014:i:8:p:674-683
    DOI: 10.1016/j.telpol.2014.04.012
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    3. Jann T. Keller & Gerard H. Kuper & Machiel Mulder, 2020. "Competition under revenue-cap regulation with efficiency benchmarking: tariff related incentives for gas transmission system operators in merged markets," Journal of Regulatory Economics, Springer, vol. 58(2), pages 141-165, December.
    4. Neumann, Karl-Heinz & Schmitt, Stephan & Schwab, Rolf, 2016. "Die Bedeutung von TAL-Preisen für den Aufbau von NGA," WIK Discussion Papers 404, WIK Wissenschaftliches Institut für Infrastruktur und Kommunikationsdienste GmbH.
    5. Briglauer Wolfgang & Frübing Stefan & Vogelsang Ingo, 2014. "The Impact of Alternative Public Policies on the Deployment of New Communications Infrastructure – A Survey," Review of Network Economics, De Gruyter, vol. 13(3), pages 227-270, September.
    6. Klaus Friesenbichler, 2019. "What Explains Aggregate Telecom Investments? Evidence From an EU-OECD Panel," WIFO Working Papers 583, WIFO.
    7. Frias, Zoraida & Pérez Martínez, Jorge, 2016. "FTTH Unbundling: The Spanish Regulation in Retrospect," 27th European Regional ITS Conference, Cambridge (UK) 2016 148669, International Telecommunications Society (ITS).
    8. Vogelsang, Ingo, 2019. "Has Europe missed the endgame of telecommunications policy?," Telecommunications Policy, Elsevier, vol. 43(1), pages 1-10.
    9. Martin Cave & Christos Genakos & Tommaso Valletti, 2019. "The European Framework for Regulating Telecommunications: A 25-year Appraisal," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 55(1), pages 47-62, August.
    10. Vogelsang, Ingo, 2017. "The role of competition and regulation in stimulating innovation – Telecommunications," Telecommunications Policy, Elsevier, vol. 41(9), pages 802-812.
    11. Vogelsang, Ingo, 2017. "Regulatory inertia versus ICT dynamics: The case of product innovations," Telecommunications Policy, Elsevier, vol. 41(10), pages 978-990.
    12. Serdarević, Goran & Hunt, Matt & Ovington, Tom & Kenny, Clive, 2016. "Evidence for a Ladder of Investment in Central and Eastern European countries," Telecommunications Policy, Elsevier, vol. 40(6), pages 515-531.
    13. I. Vogelsang, 2015. "Will the U.S. and EU telecommunications policies converge? A survey," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 42(2), pages 117-155, June.
    14. Levin, Stanford L. & Schmidt, Stephen, 2015. "Policies to Facilitate FTTP Deployment," 26th European Regional ITS Conference, Madrid 2015 127158, International Telecommunications Society (ITS).
    15. Frias, Zoraida & Martínez, Jorge Pérez, 2019. "Rollout and regulation of Fibre-To-The-Premises networks. Insights from the Spanish case," Telecommunications Policy, Elsevier, vol. 43(3), pages 225-237.
    16. Lehr, William & Clark, David & Bauer, Steve, 2019. "Regulation when platforms are layered," 30th European Regional ITS Conference, Helsinki 2019 205193, International Telecommunications Society (ITS).
    17. Vitor Miguel Ribeiro, 2018. "Dark fiber price regulation in the absence of facilities-based competition," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 45(2), pages 243-278, June.
    18. Calzada, Joan & Diaz-Serrano, Luis, 2023. "Conflicting national policies: The creation of the euro and the rebalancing of telecommunications prices," Telecommunications Policy, Elsevier, vol. 47(1).
    19. Garrone, Paola & Zaccagnino, Michele, 2015. "Seeking the links between competition and telecommunications investments," Telecommunications Policy, Elsevier, vol. 39(5), pages 388-405.
    20. Wolfgang Briglauer, 2015. "How EU sector-specific regulations and competition affect migration from old to new communications infrastructure: recent evidence from EU27 member states," Journal of Regulatory Economics, Springer, vol. 48(2), pages 194-217, October.
    21. Klaus Friesenbichler, 2016. "Österreich 2025 – Zur Zukunft der Telekommunikationspolitik in Österreich," WIFO Monatsberichte (monthly reports), WIFO, vol. 89(12), pages 885-894, December.
    22. Francisco José García Paramio & Isabel Torre Díez & Beatriz Sainz de Abajo & Miguel López-Coronado Sánchez-Fortún & Joel J. P. C. Rodrigues, 2017. "How does the Spanish regulation of NGN affect to final users? Effects on the deployment of new FTTH infrastructures," Telecommunication Systems: Modelling, Analysis, Design and Management, Springer, vol. 64(2), pages 391-415, February.
    23. Falch, Morten & Henten, Anders, 2018. "Dimensions of broadband policies and developments," Telecommunications Policy, Elsevier, vol. 42(9), pages 715-725.

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