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Access regulation and geographic deployment of a new generation infrastructure

Author

Listed:
  • David Flacher

    (CEPN - Centre d'Economie de l'Université Paris Nord (ancienne affiliation) - UP13 - Université Paris 13 - CNRS - Centre National de la Recherche Scientifique)

  • Hugues Jennequin

    (LASTA - Laboratoire d'Analyse des Sociétés, Transformations et Adaptations - UNIROUEN - Université de Rouen Normandie - NU - Normandie Université)

Abstract

This paper addresses the impact of regulatory policy on levels of infrastructure deployment and derived welfare in the telecommunications sector. The model considers two potentially coexisting and partially competing technologies (the "old generation network" – OGN – and the "new" generation network – NGN). This framework allows us to show that the "regulation defining access charge in order to maximize infrastructure deployment" is strictly equivalent to the case in which "no regulation applies". We also derive from the model that these two types of regulation induce higher social welfare, but lower numbers of NGN consumers, compared to the "ex post access prices" regulation. Finally, we show that the level of infrastructure deployment (as well as social welfare and number of NGN consumers) will be highest if both investment and access charge decisions are taken by the welfare maximizing regulator. This suggests that the social optimum will be achieved through a calls-for-tender process that includes deployment and access charge requirements.

Suggested Citation

  • David Flacher & Hugues Jennequin, 2014. "Access regulation and geographic deployment of a new generation infrastructure," Post-Print hal-02391280, HAL.
    • Handle: RePEc:hal:journl:hal-02391280
    DOI: 10.1016/j.telpol.2014.01.005
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    Citations

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    Cited by:

    1. Rendon Schneir, Juan & Xiong, Yupeng, 2016. "A cost study of fixed broadband access networks for rural areas," Telecommunications Policy, Elsevier, vol. 40(8), pages 755-773.
    2. 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.
    3. Francisco José García Paramio & Beatriz Sainz de Abajo & Isabel Torre Díez & Manuel Pérez Maluenda & Camino Fernández Llamas & Miguel López-Coronado Sánchez-Fortún & Joel J. P. C. Rodrigues, 2018. "Implications of the regulation in the implantation process of next generation networks in Spain: analysis in rural versus urban regions," Telecommunication Systems: Modelling, Analysis, Design and Management, Springer, vol. 69(1), pages 39-50, September.
    4. 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.
    5. David Henriques, 2021. "Access Prices Indexed to Geographical Coverage of Innovative Telecom Services," Journal of Industry, Competition and Trade, Springer, vol. 21(1), pages 123-138, March.
    6. Eltges, Fabian & Fourberg, Niklas & Wiewiorra, Lukas, 2022. "Copper to Fibre Migration: Regulated Access Fees Incentivising Migration," 31st European Regional ITS Conference, Gothenburg 2022: Reining in Digital Platforms? Challenging monopolies, promoting competition and developing regulatory regimes 265623, International Telecommunications Society (ITS).
    7. Eltges, Fabian & Fourberg, Niklas & Wiewiorra, Lukas, 2022. "From legacy to the future: Incentivising demand migration through access fees," WIK Working Papers 3a, WIK Wissenschaftliches Institut für Infrastruktur und Kommunikationsdienste GmbH, Bad Honnef.
    8. Levin, Stanford L. & Schmidt, Stephen, 2015. "Policies to Facilitate FTTP Deployment," 26th European Regional ITS Conference, Madrid 2015 127158, International Telecommunications Society (ITS).
    9. Ashutosh Jha & Debashis Saha, 2019. "Examining categorization of Telecom Circles in India using unsupervised k-means clustering on techno-economic indicators," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 46(4), pages 365-383, December.
    10. Henriques, David, 2020. "Access prices indexed to geographical coverage of innovative telecom services," LSE Research Online Documents on Economics 106100, London School of Economics and Political Science, LSE Library.
    11. Brito, Duarte & Tselekounis, Markos, 2016. "Access regulation and the entrant's mode of entry under multi-product competition in telecoms," Information Economics and Policy, Elsevier, vol. 37(C), pages 20-33.

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