Access regulation and investment in Next Generation Networks - a ranking of regulatory
نویسندگان
چکیده
This paper analyses how different types of access regulation to next generation networks affect investments and consumer welfare. The model consists of an investment stage with uncertain returns and subsequent quantity competition. The access price is a function of investment costs and the regulatory regime. A regime with fully distributed costs or regulatory holiday induces highest investments, followed by risk-sharing and long-run-incremental cost regulation. Risk-sharing creates most consumer welfare, followed by regimes with fully distributed costs, long-run-incremental costs and regulatory holiday, respectively. Risk-sharing benefits consumers as it combines relatively high ex-ante investment incentives with strong ex-post competitive intensity. JEL Classification: L51, L96, L10, K23
منابع مشابه
Content providers and co-investment in broadband networks
In many countries, Next Generation Access networks (NGA) deployment and penetration rate proceed at a slower pace than expected. We argue that an ex ante contractual arrangement among access Internet Service Providers (ISPs) and Content Providers (CPs), which builds on the complementarity between infrastructure and content, can promote the roll out of NGA. Di erent from co-investment of ISPs, a...
متن کاملInvestment under uncertainty and regulation of new access networks
Contractual and regulatory provisions for access affect incentives to invest in an upgraded network and, in particular, a next-generation access network. Investment decisions are made under uncertainty and have to be made over time. This papers provides a framework for taking uncertainty, risk aversion, and the timing of investment explicitly into account. First, it evaluates various access pri...
متن کاملThe Role of Regulatory in Price Control and Spectrum Allocation to Competing Wireless Access Networks
With the rapid growth of wireless access networks, various providers offer their services using different technologies such as Wi-Fi, Wimax, 3G, 4G and so on. These networks compete for the scarce wireless spectrum. The spectrum is considered to be a scarce resource moderated by the spectrum allocation regulatory (“regulatory” for short) which is the governance body aiming to maximize the socia...
متن کاملStatic and Dynamic Efficiency in the European Telecommunications Market: The Role of Regulation on the Incentives to Invest and the Ladder of Investment
In this chapter the authors provide evidence of the effectiveness of European National Regulatory Authorities in applying the basic principles of the ladder of investment. The analysis discusses and compares the regulatory approach adopted in 12 European Countries from January 2005 to July 2007. Results are not easy to interpret, given the peculiarities of the different national markets. Nevert...
متن کاملUnintended Consequences of Net Neutrality Regulation
Policymakers are in the midst of an active debate over how best to accelerate the build-out of next-generation broadband networks. The U.S. economy has a significant economic stake in the outcome. It is increasingly apparent in the global economy linked together by the Internet that the future competitiveness of individual firms, and indeed entire economies, depends heavily on state-of-the-art ...
متن کامل