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Fiber vs. vectoring: Limiting technology choices in broadband expansion

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  • Fourberg, Niklas
  • Korff, Alex

Abstract

The upgrade of legacy infrastructure is a challenging undertaking in general. The underlying issues are especially prominent for telecommunications networks outside of urban areas. Using German micro-level data, we identify the structural determinants for fiber optics deployment and its extent. We also measure the role of technology competition from the existing infrastructures, VDSL-Vectoring and TV-Cable. In this setting and exploiting a natural experiment, a technologically restrictive policy as proposed by the European Commission is found to be ineffective in promoting fiber deployment. Policy interventions in the form of subsidies targeted at specific local infrastructure projects, however, raise the likelihood of fiber deployment by a substantial margin. A targeted, proactive policy approach is therefore needed to overcome structural and geographical disadvantages.

Suggested Citation

  • Fourberg, Niklas & Korff, Alex, 2020. "Fiber vs. vectoring: Limiting technology choices in broadband expansion," Telecommunications Policy, Elsevier, vol. 44(8).
    • Handle: RePEc:eee:telpol:v:44:y:2020:i:8:s030859612030094x
    DOI: 10.1016/j.telpol.2020.102002
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    2. Muhammad Farooq & Jie Cheng & Noor Ullah Khan & Roselina Ahmad Saufi & Nagina Kanwal & Hanieh Alipour Bazkiaei, 2022. "Sustainable Waste Management Companies with Innovative Smart Solutions: A Systematic Review and Conceptual Model," Sustainability, MDPI, vol. 14(20), pages 1-19, October.

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    More about this item

    Keywords

    Fiber expansion; Technology competition; Technology regulation; Subsidies; Regional infrastructure;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

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