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Role of access charges in the migration from copper to FTTH

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  • Jeanjean, François
  • Liang, Julienne

Abstract

We consider a horizontally and vertically differentiated duopoly model in order to analyze both intra- and inter-platform competition in an always corvered broadband access market (Copper-Copper, Copper-FTTH and FTTH-FTTH competitions). The model is purely static and does not address dynamic efficiency issues. It shows that the access charges play a significant role in the migration from copper to FTTH and in FTTH investment incentives, provided that consumers are segmented. In FTTH-infrastructure-based competition, investment incentives tend to increase with the copper access charge, while in FTTH-servicebased competition, FTTH investment incentives are much more sensitive to the FTTH access charge than to the copper access charge. A comparison of FTTH-infrastructure-based and FTTH-service-based competition in terms of nationwide FTTH coverage and social welfare indicates that FTTH-infrastructure-based competition leads to a higher level of nationwide FTTH coverage and social welfare.

Suggested Citation

  • Jeanjean, François & Liang, Julienne, 2011. "Role of access charges in the migration from copper to FTTH," 8th ITS Asia-Pacific Regional Conference, Taipei 2011: Convergence in the Digital Age 52335, International Telecommunications Society (ITS).
    • Handle: RePEc:zbw:itsp11:52335
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    1. Aimene, Louise & Lebourges, Marc & Liang, Julienne, 2019. "Estimating the impact of co-investment on fiber to the home coverage, adoption and competition," 30th European Regional ITS Conference, Helsinki 2019 205160, International Telecommunications Society (ITS).
    2. 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.
    3. Eltges, Fabian & Fourberg, Niklas & Wiewiorra, Lukas, 2021. "Copper to fibre migration: Regulated access fees incentivising migration," WIK Working Papers 3, WIK Wissenschaftliches Institut für Infrastruktur und Kommunikationsdienste GmbH, Bad Honnef.
    4. Aimene, Louise & Lebourges, Marc & Liang, Julienne, 2021. "Estimating the impact of co-investment on Fiber to the Home adoption and competition," Telecommunications Policy, Elsevier, vol. 45(10).
    5. Lebourges, Marc & Liang, Julienne, 2018. "Estimating the impact of co-investment in fiber to the home coverage," 29th European Regional ITS Conference, Trento 2018 184953, International Telecommunications Society (ITS).
    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).

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