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How impact fees and local planning regulation can influence deployment of telecoms infrastructure

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  • Gorecki, Paul
  • Hennessy, Hugh
  • Lyons, Sean

Abstract

This paper examines how local government planning regulations and charges affect the deployment of telecommunications infrastructure. We explore the economic rationale for local government regulation of such infrastructure, which we suggest should be based on managing negative externalities. Using data from Ireland, we find that the observed geographical pattern of impact fees is inconsistent with the economic rationale for them. A simple econometric model of the number of telecoms masts in each country also suggests that the level of impact fees is negatively associated with mast deployment. This paper also examines other regulatory factors that affect the provision of new infrastructure. We find wide regional variation in these regulations but are unableto quantify their impact on infrastructure provision. Such regulatory complexity places extra compliance burdens on private operators, which may in turn distort the level and regional pattern of network investment. We suggest further regional harmonisation of development policy towards telecoms infrastructure to avoid exacerbating regional disparities in rollout of services. --

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Bibliographic Info

Paper provided by International Telecommunications Society (ITS) in its series 22nd European Regional ITS Conference, Budapest 2011: Innovative ICT Applications - Emerging Regulatory, Economic and Policy Issues with number 52160.

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Date of creation: 2011
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Handle: RePEc:zbw:itse11:52160

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Web page: http://www.itseurope.org/

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Keywords: Land use regulation; telecommunications infrastructure investment; impact fees;

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  1. J. Peter Clinch & Eoin O'Neill, 2010. "Designing Development Planning Charges: Settlement Patterns, Cost Recovery and Public Facilities," Urban Studies, Urban Studies Journal Limited, vol. 47(10), pages 2149-2171, September.
  2. Burge, Gregory & Ihlanfeldt, Keith, 2009. "Development impact fees and employment," Regional Science and Urban Economics, Elsevier, vol. 39(1), pages 54-62, January.
  3. Sebastian Brandt & Wolfgang Maennig, 2012. "Perceived externalities of cell phone base stations: the case of property prices in Hamburg, Germany," Environment and Planning A, Pion Ltd, London, vol. 44(2), pages 396-410, February.
  4. Brueckner, Jan K., 1997. "Infrastructure financing and urban development:: The economics of impact fees," Journal of Public Economics, Elsevier, vol. 66(3), pages 383-407, December.
  5. Alex Anas & Robin Lindsey, 2011. "Reducing Urban Road Transportation Externalities: Road Pricing in Theory and in Practice," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 5(1), pages 66-88, Winter.
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