IDEAS home Printed from https://ideas.repec.org/p/zbw/itse15/127120.html
   My bibliography  Save this paper

Ultra-Broadband For All In Europe: Can Access Regulation Hinder Innovation And Welfare Maximisation?

Author

Listed:
  • Amendola, Giovanni Battista

Abstract

Most of the European countries risk not reaching the 2020 Digital Agenda for Europe (DAE) targets. In order to achieve these targets, private investments in ultra-broadband networks should be vigorously promoted by access regulation whilst the deployment of ultra-broadband networks in unprofitable areas should be subsidized by means of appropriate public funding. Fiber to the Cabinet (FTTC) is considered a key technology in order to reach the 2020 DAE targets. This deployment model is widely adopted in a number of countries including, among others, Germany, the UK and Italy. The paper addresses FTTC regulation both at national and local level, that is in geographic areas subsidized by State aids. First, it emerges a clear trade-off at national level between the goal of infrastructure-based competition at the cabinet level and the achievement of the 2020 DAE targets. Inappropriate access regulation may indeed jeopardize the 2020 DAE targets by decreasing private investors’ incentives to roll out FTTC networks, as well as to deploy new technologies such as Vectoring. Access regulation may thus, rather paradoxically, increase the amount of State aid funding which is required in a given country to meet the 2020 DAE targets. Second, excessive access obligations in geographies subsidized by State aids can also substantially increase State aid funding and, thus, undermine the capability of a given country to reach the 2020 DAE targets.

Suggested Citation

  • Amendola, Giovanni Battista, 2015. "Ultra-Broadband For All In Europe: Can Access Regulation Hinder Innovation And Welfare Maximisation?," 26th European Regional ITS Conference, Madrid 2015 127120, International Telecommunications Society (ITS).
    • Handle: RePEc:zbw:itse15:127120
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/127120/1/Amendola.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Wolfgang D. BOCK & Maikel WILMS & Peter SOOS & Bjoern ROEBER, 2014. "Reforming Europe's Telecoms Regulation to Enable the Digital Single Market," Communications & Strategies, IDATE, Com&Strat dept., vol. 1(93), pages 17-34, 1st quart.
    2. Bourreau, Marc & Cambini, Carlo & Hoernig, Steffen, 2012. "Ex ante regulation and co-investment in the transition to next generation access," Telecommunications Policy, Elsevier, vol. 36(5), pages 399-406.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Karamti, Chiraz, 2019. "Lopsided effects of telecom reforms on mobile markets in the enlarged EU: Evidence from dynamic quantile model," Telecommunications Policy, Elsevier, vol. 43(3), pages 238-261.
    2. Bauer, Johannes M., 2014. "Platforms, systems competition, and innovation: Reassessing the foundations of communications policy," Telecommunications Policy, Elsevier, vol. 38(8), pages 662-673.
    3. Hrovatin, Nevenka & Švigelj, Matej, 2013. "The interplay of regulation and other drivers of NGN deployment: A real-world perspective," Telecommunications Policy, Elsevier, vol. 37(10), pages 836-848.
    4. Parcu, Pier Luigi & Silvestri, Virginia, 2013. "Electronic communications regulation in Europe: An overview of past and future problems," 24th European Regional ITS Conference, Florence 2013 88509, International Telecommunications Society (ITS).
    5. Angelou, Georgios N. & Economides, Anastasios A., 2014. "Investment flexibility and competition modeling for broadband business," Telecommunications Policy, Elsevier, vol. 38(5), pages 438-448.
    6. 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.
    7. Gallardo, Fernando & Méndez, Mariano & Monjas, Manuel & Sánchez, Fernando, 2015. "Real Options on New Generation Access Networks based on FTTH. An approach to the Spanish Case," 26th European Regional ITS Conference, Madrid 2015 127143, International Telecommunications Society (ITS).
    8. 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.
    9. 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.
    10. Balmera, Roberto E. & Ünverb, Mehmet Bilal, 2016. "Cooperative investment in next generation broadband networks: A review of recent practical cases and literature," 27th European Regional ITS Conference, Cambridge (UK) 2016 148657, International Telecommunications Society (ITS).
    11. Tselekounis, Markos & Varoutas, Dimitris, 2013. "Investments in next generation access infrastructures under regulatory uncertainty," Telecommunications Policy, Elsevier, vol. 37(10), pages 879-892.
    12. 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).
    13. Inderst, Roman & Peitz, Martin, 2012. "Network investment, access and competition," Telecommunications Policy, Elsevier, vol. 36(5), pages 407-418.
    14. Krämer Jan & Vogelsang Ingo, 2016. "Co-Investments and Tacit Collusion in Regulated Network Industries: Experimental Evidence," Review of Network Economics, De Gruyter, vol. 15(1), pages 35-61, March.
    15. Serge J.H. Gijrath, 2017. "Telecommunications networks," Competition and Regulation in Network Industries, , vol. 18(3-4), pages 175-197, September.
    16. Balmer, Roberto E., 2014. "Geographic regulation and cooperative investment in next generation broadband networks," 20th ITS Biennial Conference, Rio de Janeiro 2014: The Net and the Internet - Emerging Markets and Policies 106889, International Telecommunications Society (ITS).
    17. Balmera, Roberto E. & Ünverb, Mehmet Bilal, 2016. "Geographic regulation of next generation broadband networks: A review of practical cases and recent literature," 27th European Regional ITS Conference, Cambridge (UK) 2016 148656, International Telecommunications Society (ITS).
    18. Balmer, Roberto E., 2015. "Geographic regulation of next generation broadband networks: A review of practical cases and recent literature," 26th European Regional ITS Conference, Madrid 2015 127125, International Telecommunications Society (ITS).
    19. Howell, Bronwyn, 2012. "Competition and Regulation Policy in Antipodean Government-Funded UltraFast Fibre Broadband Markets," Working Paper Series 18774, Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation.
    20. Duarte Brito & Markos Tselekounis, 2017. "On the Impact of Input Prices on an Entrant’s Profit Under Multi-Product Competition," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 50(1), pages 105-125, February.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:itse15:127120. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: http://www.itseurope.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.