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Regulation, investment and efficiency in the transition to next generation networks: Evidence from the European Union

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  • Rajabiun, Reza
  • Middleton, Catherine

Abstract

This article explores the impact of public policy, technological change, and the development of Internet connectivity in EU members. The analysis illustrates that the results of previous empirical literature on the interplay between regulation, competition, and investment depend on the construction of indicators employed to evaluate this interaction. Furthermore, the article points out that the traditional policy model and related empirical literature treats fixed capital inputs in networks as a measure of digital infrastructure quality/outcomes. Using broadband speed measurements between 2007 and 2012, the article addresses this gap in the literature and evaluates the determinants of digital infrastructure quality in the EU. The analysis suggests the primary driver of network quality in the medium to long term is the willingness and/or ability of operators to reinvest more of their revenues in network capacity improvements.

Suggested Citation

  • Rajabiun, Reza & Middleton, Catherine, 2013. "Regulation, investment and efficiency in the transition to next generation networks: Evidence from the European Union," 24th European Regional ITS Conference, Florence 2013 88536, International Telecommunications Society (ITS).
    • Handle: RePEc:zbw:itse13:88536
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    References listed on IDEAS

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    Keywords

    Broadband Networks; European Union; Regulation; Technological Change; Federalism;
    All these keywords.

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