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The long-run effects of copper-loop unbundling and the implications for fiber

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  • Crandall, Robert W.
  • Eisenach, Jeffrey A.
  • Ingraham, Allan T.

Abstract

Policies mandating unbundling of copper telecommunications networks have now been in place for more than 15 years, and it is thus becoming possible to study their long-run effects. This paper reviews the existing evidence on the effects of copper unbundling, and presents new empirical results based on regression analyses of broadband penetration in OECD countries from 2001 to 2010. The results show that the long-run effect of copper unbundling on household broadband penetration rates is negative, a finding which is consistent with previous research, including with research suggesting that copper unbundling has slowed the deployment of FTTP infrastructures, especially in Europe. Based on an analysis of the similarities and differences between the unbundling of copper networks and fiber networks, the paper concludes that mandated unbundling of fiber networks would likely deter deployment of Next Generation Access networks (NGAs).

Suggested Citation

  • Crandall, Robert W. & Eisenach, Jeffrey A. & Ingraham, Allan T., 2013. "The long-run effects of copper-loop unbundling and the implications for fiber," Telecommunications Policy, Elsevier, vol. 37(4), pages 262-281.
  • Handle: RePEc:eee:telpol:v:37:y:2013:i:4:p:262-281
    DOI: 10.1016/j.telpol.2012.08.002
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    References listed on IDEAS

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    Cited by:

    1. Marc Bourreau & Carlo Cambini & Pınar Doğan, 2014. "Access regulation and the transition from copper to fiber networks in telecoms," Journal of Regulatory Economics, Springer, vol. 45(3), pages 233-258, June.
    2. Briglauer Wolfgang & Frübing Stefan & Vogelsang Ingo, 2014. "The Impact of Alternative Public Policies on the Deployment of New Communications Infrastructure – A Survey," Review of Network Economics, De Gruyter, vol. 13(3), pages 227-270, September.
    3. Klein, Gordon J. & Wendel, Julia, 2014. "The impact of local loop and retail unbundling," 20th ITS Biennial Conference, Rio de Janeiro 2014: The Net and the Internet - Emerging Markets and Policies 106845, International Telecommunications Society (ITS).
    4. Cave, Martin, 2014. "The ladder of investment in Europe, in retrospect and prospect," Telecommunications Policy, Elsevier, vol. 38(8), pages 674-683.
    5. Briglauer, Wolfgang, 2014. "The impact of regulation and competition on the migration from old to new communications infrastructure: Recent evidence from EU27 member states," ZEW Discussion Papers 14-085, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    6. Levin, Stanford Lee & Schmidt, Stephen & Scott, Graham, 2015. "Broadband for all: Policies for a connected society," 2015 Regional ITS Conference, Los Angeles 2015 146346, International Telecommunications Society (ITS).
    7. Briglauer, Wolfgang & Gugler, Klaus & Haxhimusa, Adhurim, 2015. "Facility- and Service-based Competition and Investment in Fixed Broadband Networks: Lessons from a Decade of Access Regulations in the European Union Member States," 26th European Regional ITS Conference, Madrid 2015 127130, International Telecommunications Society (ITS).
    8. Vogelsang Ingo, 2013. "The Endgame of Telecommunications Policy? A Survey," Review of Economics, De Gruyter, vol. 64(3), pages 193-270, December.
    9. I. Vogelsang, 2015. "Will the U.S. and EU telecommunications policies converge? A survey," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 42(2), pages 117-155, June.
    10. Levin, Stanford L. & Schmidt, Stephen, 2015. "Policies to Facilitate FTTP Deployment," 26th European Regional ITS Conference, Madrid 2015 127158, International Telecommunications Society (ITS).
    11. Klein, Gordon J. & Wendel, Julia, 2014. "The impact of local loop and retail unbundling revisited," DICE Discussion Papers 163, University of Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    12. Levin, Stanford L. & Schmidt, Stephen & Scott, Graham, 2016. "Broadband Adoption: Translating the Digital Divide Literature into Effective Government Policies and Actions," 27th European Regional ITS Conference, Cambridge (UK) 2016 148684, International Telecommunications Society (ITS).
    13. Briglauer, Wolfgang & Cambini, Carlo & Fetzer, Thomas & Hüschelrath, Kai, 2017. "The European electronic communications code: A critical appraisal with a focus on incentivizing investment in next generation broadband networks," ZEW Discussion Papers 17-027, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    14. Briglauer, Wolfgang & Gugler, Klaus, 2013. "The deployment and penetration of high-speed fiber networks and services: Why are EU member states lagging behind?," Telecommunications Policy, Elsevier, vol. 37(10), pages 819-835.
    15. Ben Dkhil, Inès, 2014. "Regulation and Investment in Telecom Network Infrastructure Facilities: The Recent Developments and Debates," MPRA Paper 72910, University Library of Munich, Germany, revised 02 Feb 2015.
    16. Wolfgang Briglauer, 2015. "How EU sector-specific regulations and competition affect migration from old to new communications infrastructure: recent evidence from EU27 member states," Journal of Regulatory Economics, Springer, vol. 48(2), pages 194-217, October.
    17. Shinohara, Sobee & Morikawa, Hiroyuki & Tsuji, Masatsugu, 2015. "Competition or smartphones? Factors promote mobile broadband adoption in OECD countries," 2015 Regional ITS Conference, Los Angeles 2015 146349, International Telecommunications Society (ITS).
    18. Shinohara, Sobee & Morikawa, Hiroyuki & Tsuji, Masatsugu, 2016. "How Smartphones Transformed Market and Competition of Mobile Broadband in OECD Member Countries," 27th European Regional ITS Conference, Cambridge (UK) 2016 148704, International Telecommunications Society (ITS).
    19. Bertschek, Irene & Briglauer, Wolfgang & Hüschelrath, Kai & Krämer, Jan & Frübing, Stefan & Kesler, Reinhold & Saam, Marianne, 2016. "Metastudie zum Fachdialog Ordnungsrahmen für die Digitale Wirtschaft: Im Auftrag des Bundesministeriums für Wirtschaft und Energie (BMWi)," ZEW Expertises, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research, number 147040.

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    Keywords

    Broadband; Copper; Fiber; NGA; Unbundling;

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