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Regulation of NGN: Structural Separation, Access Regulation, or No Regulation at All?

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  • Kirsch, Fabian
  • Hirschhausen, Christian von

Abstract

Since the introduction of Next Generation Networks (NGNs) by telecommunication network operators, national regulators have begun to adapt their access regulation regimes to the new technological conditions. The regulatory reactions gravitate towards three distinct regulatory trajectories: unregulated competition, access regulation, and structural separation. We first analyze the extent of market power in access Networks in NGNs from a technological perspective. Second, we use case studies to identify patterns between technological and market conditions and regulators' reactions in selected countries. We find that market power in the access network is likely to prevail. Regulatory reactions differ with the extent of infrastructure competition and the regulators position in the trade-off between promoting investment and protecting competition.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 8822.

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Date of creation: Mar 2008
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Handle: RePEc:pra:mprapa:8822

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Keywords: Next Generation Network; deregulation; access regulation; structural separation;

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References

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  1. Timothy Tardiff, 2007. "Changes in industry structure and technological convergence: implications for competition policy and regulation in telecommunications," International Economics and Economic Policy, Springer, vol. 4(2), pages 109-133, August.
  2. Oecd, 2005. "Next Generation Network Development in OECD Countries," OECD Digital Economy Papers 89, OECD Publishing.
  3. Marcus, J. Scott, 2005. "Is the U.S. Dancing to a Different Drummer?," MPRA Paper 2514, University Library of Munich, Germany.
  4. Cave, Martin, 2006. "Six Degrees of Separation : Operational Separation as a Remedy in European Telecommunications Regulation," MPRA Paper 3572, University Library of Munich, Germany.
  5. Bijl, P.W.J. de & Peitz, M., 2007. "Innovation, Convergence and the Role of Regulation in the Netherlands," Discussion Paper 2007-016, Tilburg University, Tilburg Law and Economic Center.
  6. Joshua Gans & Stephen King, 2003. "Access Holidays for Network Infrastructure Investment," Monash Economics Working Papers archive-39, Monash University, Department of Economics.
  7. M. Cave & L. Correa & P. Crocioni, 2006. "Regulating for Non-price Discrimination: The case of UK Fixed Telecoms," Competition and Regulation in Network Industries, Intersentia, vol. 7(3), pages 391-416, September.
  8. Shaked, Avner & Sutton, John, 1982. "Relaxing Price Competition through Product Differentiation," Review of Economic Studies, Wiley Blackwell, vol. 49(1), pages 3-13, January.
  9. Paul de Bijl & M. Peitz, 2008. "Innovation, convergence and the role of regulation in the Netherlands and beyond," CPB Discussion Paper 108, CPB Netherlands Bureau for Economic Policy Analysis.
  10. Graeme Guthrie, 2006. "Regulating Infrastructure: The Impact on Risk and Investment," Journal of Economic Literature, American Economic Association, vol. 44(4), pages 925-972, December.
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Cited by:
  1. Ricardo Gonçalves & Álvaro Nascimento, 2009. "The momentum for network separation: a guide for regulators," Working Papers de Economia (Economics Working Papers) 03, Faculdade de Economia e Gestão, Universidade Católica Portuguesa (Porto).
  2. Ragoobar, Tricia & Whalley, Jason & Harle, David, 2010. "The interplay between market factors and regulation in next-generation broadband: evidence from Europe," 21st European Regional ITS Conference, Copenhagen 2010: Telecommunications at new crossroads - Changing value configurations, user roles, and regulation 44, International Telecommunications Society (ITS).
  3. Isabel Soares & Paula Sarmento, 2012. "Unbundling in the Telecommunications and the Electricity Sectors: How Far should it Go?," European Research Studies Journal, European Research Studies Journal, vol. 0(Special I), pages 157-194.
  4. Juan José Ganuza & Karla Perca & Maria Fernanda Viecens Trocello, 2010. "Las Redes de Nueva Generación en España. Situación actual y retos para el futuro," Economic Reports 02-2010, FEDEA.

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