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Net Neutrality, Unbundling, and their Effects on International Investment in Next-Generation Networks

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  • Wallsten Scott

    ()
    (Technology Policy Institute)

  • Hausladen Stephanie

    (Technology Policy Institute)

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    Abstract

    This paper examines the net neutrality debate in countries outside the U.S., particularly in the EU. Most appear to have endorsed the idea of net neutrality and believe that policies promoting unbundling – mandatory network sharing – will ensure neutral networks. We argue that unbundling may not necessarily affect incumbent incentives to prioritize certain traffic. Because unbundling can affect investment incentives, we use a new dataset to examine empirically the effects of unbundling on investment in new fiber networks in Europe. We find a significant negative correlation between the number of unbundled DSL connections per capita and the number of fiber connections.

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    Bibliographic Info

    Article provided by De Gruyter in its journal Review of Network Economics.

    Volume (Year): 8 (2009)
    Issue (Month): 1 (March)
    Pages: 1-23

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    Handle: RePEc:bpj:rneart:v:8:y:2009:i:1:n:6

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    Web page: http://www.degruyter.com

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    Web: http://www.degruyter.com/view/j/rne

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    Cited by:
    1. Maya Bacache & Marc Bourreau & Germain Gaudin, 2014. "Dynamic Entry and Investment in New Infrastructures: Empirical Evidence from the Fixed Broadband Industry," Review of Industrial Organization, Springer, vol. 44(2), pages 179-209, March.
    2. Daeho Lee & Junseok Hwang, 2011. "The Effect of Network Neutrality on the Incentive to Discriminate, Invest and Innovate: A Literature Review," TEMEP Discussion Papers 201184, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised Nov 2011.
    3. Briglauer, Wolfgang, 2013. "The impact of regulation and competition on the adoption of fibre-based broadband services: Recent evidence from the European Union member states," 24th European Regional ITS Conference, Florence 2013 88494, International Telecommunications Society (ITS).
    4. Wolfgang Briglauer, 2014. "The impact of regulation and competition on the adoption of fiber-based broadband services: recent evidence from the European union member states," Journal of Regulatory Economics, Springer, vol. 46(1), pages 51-79, August.
    5. Shin, Donghee, 2013. "Governing network neutrality: Public perception and policy capacity," 24th European Regional ITS Conference, Florence 2013 88540, International Telecommunications Society (ITS).
    6. Bauer, Johannes M. & Shim, Woohyun, 2012. "Regulation and digital innovation: Theory and evidence," 23rd European Regional ITS Conference, Vienna 2012 60364, International Telecommunications Society (ITS).
    7. Shin, Dong-Hee, 2012. "A case study of network neutrality in Korea," 23rd European Regional ITS Conference, Vienna 2012 60383, International Telecommunications Society (ITS).
    8. Eli M. NOAM, 2011. "Beyond Net Neutrality: End-User Sovereignty," Communications & Strategies, IDATE, Com&Strat dept., vol. 1(84), pages 153-173, 4th quart.
    9. Filippo Belloc & Antonio Nicita & Maria Alessandra Rossi, 2011. "The Nature, Timing and Impact of Broadband Policies: a Panel Analysis of 30 OECD Countries," Department of Economics University of Siena 615, Department of Economics, University of Siena.

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