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Unbundling and infrastructure competition for broadband adoption: Implications for NGA regulation

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  • Kongaut, Chatchai
  • Bohlin, Erik

Abstract

The common idea of open access policy is that it refers to the sharing of particular elements, such as wholesale access networks, backhaul, under-sea cable and internet exchange points in fixed and mobile networks. In broadband networks, the use of open access policy usually refers to the infrastructure parts, which are considered a bottleneck. Many regulators have generally focused open access policy on fixed broadband networks, especially digital subscriber line (DSL) technology, in the last decade. Local loop unbundling (LLU) regulation is one of the main strategies for the regulator to open access to an incumbent’s bottleneck network in order to soften its monopoly power and encourage competition in the DSL broadband market. The OECD countries have different strategies regarding unbundling local loop and infrastructure competition, as the characteristics and infrastructure networks of countries vary. There are currently more choices of next generation network (NGN) technologies to develop. While local loop unbundling may not be applied fully to NGN development (the cost is not sunk, more technologies are available to implement, incentive of investment by operator), it can indicate benefits and drawbacks of open access policy in the past decade that can be adapted to NGN.

Suggested Citation

  • Kongaut, Chatchai & Bohlin, Erik, 2014. "Unbundling and infrastructure competition for broadband adoption: Implications for NGA regulation," Telecommunications Policy, Elsevier, vol. 38(8), pages 760-770.
    • Handle: RePEc:eee:telpol:v:38:y:2014:i:8:p:760-770
    DOI: 10.1016/j.telpol.2014.06.003
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    3. Oughton, Edward J. & Amaglobeli, David & Moszoro, Marian, 2023. "What would it cost to connect the unconnected? Estimating global universal broadband infrastructure investment," Telecommunications Policy, Elsevier, vol. 47(10).
    4. Yifeng Philip Chen & Edward J. Oughton & Jakub Zagdanski & Maggie Mo Jia & Peter Tyler, 2023. "Crowdsourced data indicates broadband has a positive impact on local business creation," Papers 2308.14734, arXiv.org.
    5. 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.
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    7. Ioannou, Nikos & Logothetis, Vangelis & Petre, Konstantin & Tselekounis, Markos & Chipouras, Aris & Katsianis, Dimitris & Varoutas, Dimitris, 2021. "Network modeling approaches for calculating wholesale NGA prices: A full comparison based on the Greek fixed broadband market," Telecommunications Policy, Elsevier, vol. 45(9).
    8. Mirjam R. J. Lange, 2017. "Tariff diversity and competition policy: drivers for broadband adoption in the European Union," Journal of Regulatory Economics, Springer, vol. 52(3), pages 285-312, December.
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    10. Levin, Stanford L. & Schmidt, Stephen, 2015. "Policies to Facilitate FTTP Deployment," 26th European Regional ITS Conference, Madrid 2015 127158, International Telecommunications Society (ITS).
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    12. 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.
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    14. Philip Chen & Edward J Oughton & Pete Tyler & Mo Jia & Jakub Zagdanski, 2020. "Evaluating the impact of next generation broadband on local business creation," Papers 2010.14113, arXiv.org.

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