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The Economics of Next Generation Access Networks and Regulatory Governance: Towards Geographic Patterns of Regulation

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  • Amendola, Giovanni Battista
  • Pupillo, Lorenzo Maria
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    Abstract

    This paper examines the mix of technical, regulatory, and business strategy issues that arise in implementing next generation broadband platforms in Europe. Our review of some European studies on NGAN in Europe and our specific focus on the Italian situation, in particular on the competitive situation in Milano, shows the relevant flaw of continuing to advocate national patterns of regulation. In fact, the deployment of NGAN calls for a radical shift of regulation on a geographic level. The recognition that a NGAN business case does exist for OLO in a number of local areas, mainly metropolitan ones, has relevant regulatory implications.In the first place, since the conditions of competition differ significantly among local areas, regulation should promote both incumbents' and OLO's investments in NGAN by limiting ex ante interventions to those enduring economic bottlenecks found at a specific geographic markets level. In the second place, market definition is the most important step in the market analysis procedure to help decide whether to regulate a given service provided over a NGAN or not. We have proposed a taxonomy of local areas that may be adopted in a country like Italy for a correct geographic definition of markets 4 and 5 and, as a consequence, for the imposition of appropriate remedies.

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    File URL: http://mpra.ub.uni-muenchen.de/8823/
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    Bibliographic Info

    Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 8823.

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    Date of creation: Mar 2008
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    Handle: RePEc:pra:mprapa:8823

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    Related research

    Keywords: Next Generation Networks; geographic markets; geographic remedies; infrastructure sharing; market definition;

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    1. Pupillo, Lorenzo & Conte, Andrea, 1998. "The economics of local loop architecture for multimedia services," Information Economics and Policy, Elsevier, vol. 10(1), pages 107-126, March.
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    Cited by:
    1. Donald K. STOCKDALE, Jr., 2011. "Geographically Segmented Regulation: Lessons from the FCC for European Communications Markets," Communications & Strategies, IDATE, Com&Strat dept., vol. 1(82), pages 85-104, 2nd quart.
    2. Lehr, William H. & Chapin, John M., 2010. "On the convergence of wired and wireless access network architectures," Information Economics and Policy, Elsevier, vol. 22(1), pages 33-41, March.
    3. Bruno SORIA & Félix HERNÁNDEZ-GIL, 2010. "Do NGAN Economics Allow for Network Competition?," Communications & Strategies, IDATE, Com&Strat dept., vol. 1(78), pages 23-44, 2nd quart.

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