Regulatory Policy Implications of Different Levels of Symmetry

Rather than a general pan-European trend towards more symmetry, the European electronic communication markets face increasingly a dichotomy between countries with significant intermodal competition and countries without. Although researchers have suggested that there is a (negative) causal relation between the level of access regulation and investment, this conclusion is not supported by any empirical findings and is likely to be incorrect. The real major determinant for the investment in NGA seems to be the pre-existing susceptibility of countries to platform competition, which concurs with the tendency to symmetry. Regulators should seek to optimally use this susceptability, and avoid a one-size-fits-all approach. Based on a classification of markets by the degree of susceptability to platform competition this paper tries to provide guidance as to how regulatory policy can ensure optimal outcomes for consumers in various types of markets.