The momentum for network separation: a guide for regulators
NGAs (Next Generation Access Networks) are a challenge to regulators and operators insofar as they require large investments, there is significant uncertainty about the ability to recover costs, and the choice of the appropriate regulatory regime is far from consensual. Regulatory authorities might want to seize the moment and reconsider the mandatory vertical separation of telecommunication firms, without jeopardizing incentives to innovation, investment and welfare. We provide a provocative but simple test for the adequacy of network separation as a regulatory remedy. We propose a decision tree procedure with four steps in order to assess whether network separation is an adequate regulatory response:  “Is there significant market power in the market for the provision of access services under NGAs?”;  “Are there few vertical complementarities between services along the supply chain?”;  “Is functional separation a better regulatory tool than any other alternative?”; and  “Is structural separation superior to functional separation?”. A positive answer to the first three questions implies that the regulator should consider functional network separation, whilst the fourth is needed for the structural alternative.
|Date of creation:||Jan 2009|
|Contact details of provider:|| Postal: Rua Diogo Botelho, 1327; 4169 - 005 Porto|
Phone: +351 226 196 200
Fax: +351 226 196 291
Web page: http://www.catolicabs.porto.ucp.pt/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Cave, Martin, 2006. "Six Degrees of Separation : Operational Separation as a Remedy in European Telecommunications Regulation," MPRA Paper 3572, University Library of Munich, Germany.
- P.W.J. De Bijl, 2005.
"Structural Separation and Access in Telecommunications Markets,"
Competition and Regulation in Network Industries,
Intersentia, vol. 6(2), pages 95-115, June.
- Paul de Bijl, 2005. "Structural Separation and Access in Telecommunications Markets," CESifo Working Paper Series 1554, CESifo Group Munich.
- Pittman Russell, 2005. "Structural Separation to Create Competition? The Case of Freight Railways," Review of Network Economics, De Gruyter, vol. 4(3), pages 1-16, September.
- Dixit, Avinash K & Stiglitz, Joseph E, 1975.
"Monopolistic Competition and Optimum Product Diversity,"
The Warwick Economics Research Paper Series (TWERPS)
64, University of Warwick, Department of Economics.
- Dixit, Avinash K & Stiglitz, Joseph E, 1977. "Monopolistic Competition and Optimum Product Diversity," American Economic Review, American Economic Association, vol. 67(3), pages 297-308, June.
- Russell Pittman, 2003. "Vertical Restructuring (or Not) of the Infrastructure Sectors of Transition Economies," Journal of Industry, Competition and Trade, Springer, vol. 3(1), pages 5-26, March.
- Kirsch, Fabian & Hirschhausen, Christian von, 2008.
"Regulation of NGN: Structural Separation, Access Regulation, or No Regulation at All?,"
8822, University Library of Munich, Germany.
- Fabian KIRSCH & Christian von HIRSCHHAUSEN, 2008. "Regulation of NGN: Structural Separation, Access Regulation, or No Regulation at All?," Communications & Strategies, IDATE, Com&Strat dept., vol. 1(69), pages 63-84, 1st quart.
When requesting a correction, please mention this item's handle: RePEc:cap:wpaper:032009. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ricardo Goncalves)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.