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Geographically Segmented Regulation: Lessons from the FCC for European Communications Markets

Author

Listed:
  • Donald K. STOCKDALE, Jr.

    (Mayer Brown LLP, Washington)

Abstract

Since telecommunications markets were liberalized, competition has not developed in a geographically uniform manner, and the introduction of NGA networks is likely to exacerbate these geographic differences. Geographic variations in competition have caused European regulators to consider the use of geographically segmented regulation. Unfortunately, geographically segmented regulation is complicated and requires compromises and judgment calls. As a result, there is a danger that inconsistent implementation of geographically segmented regulation by NRAs may threaten the Single European market. This paper examines the experience of the Federal Communications Commission (FCC) in defining relevant geographic markets and in adopting geographically segmented regulation. The paper begins by sketching the statutory and regulatory framework within which the FCC must operate. It then describes the FCC's approach to defining relevant geographic markets for purposes of merger review and dominance determinations. The paper then examines how the Commission has attempted to adjust regulation for geographic differences in the level of competition, both in rulemaking proceedings and in response to petitions seeking forbearance from regulation. Drawing on the U.S. experience, the paper concludes with some observations on the difficulties and tradeoffs that European NRAs are likely to face in implementing geographically segmented regulation.

Suggested Citation

  • 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.
    • Handle: RePEc:idt:journl:cs8204
    as

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    File URL: http://repec.idate.org/RePEc/idt/journl/CS8204/CS82_STOCKDALE.pdf
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    References listed on IDEAS

    as
    1. Giovanni Battista AMENDOLA & Lorenzo Maria PUPILLO, 2008. "The Economics of Next Generation Access Networks and Regulatory Governance: Towards Geographic Patterns of Regulation," Communications & Strategies, IDATE, Com&Strat dept., vol. 1(69), pages 85-108, 1st quart.
    2. Amendola, Giovanni Battista & Pupillo, Lorenzo Maria, 2008. "The Economics of Next Generation Access Networks and Regulatory Governance: Towards Geographic Patterns of Regulation," MPRA Paper 8823, University Library of Munich, Germany.
    3. Oecd, 2010. "Geographically Segmented Regulation for Telecommunications," OECD Digital Economy Papers 173, OECD Publishing.
    4. Martin Cave & Matthew Corkery, 2009. "Regulation and Barriers to Trade in Telecommunications Services in the European Union," CESifo Working Paper Series 2678, CESifo.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Balmera, Roberto E. & Ünverb, Mehmet Bilal, 2016. "Cooperative investment in next generation broadband networks: A review of recent practical cases and literature," 27th European Regional ITS Conference, Cambridge (UK) 2016 148657, International Telecommunications Society (ITS).
    2. Balmer, Roberto E., 2014. "Geographic regulation and cooperative investment in next generation broadband networks," 20th ITS Biennial Conference, Rio de Janeiro 2014: The Net and the Internet - Emerging Markets and Policies 106889, International Telecommunications Society (ITS).
    3. Balmera, Roberto E. & Ünverb, Mehmet Bilal, 2016. "Geographic regulation of next generation broadband networks: A review of practical cases and recent literature," 27th European Regional ITS Conference, Cambridge (UK) 2016 148656, International Telecommunications Society (ITS).
    4. Balmer, Roberto E., 2015. "Geographic regulation of next generation broadband networks: A review of practical cases and recent literature," 26th European Regional ITS Conference, Madrid 2015 127125, International Telecommunications Society (ITS).
    5. Balmer, Roberto, 2013. "Geographic Regulation and Cooperative Investment in Next Generation Broadband Networks - A Review of Recent Literature and Practical Cases," MPRA Paper 54080, University Library of Munich, Germany.
    6. Balmer, Roberto E., 2015. "Cooperative investment in next generation broadband networks: A review of recent practical cases and literature," 26th European Regional ITS Conference, Madrid 2015 127124, International Telecommunications Society (ITS).

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    More about this item

    Keywords

    Next Generation Networks; geographic markets; geographic remedies; market definition.;
    All these keywords.

    JEL classification:

    • K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation

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