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Local Loop Unbundling in Europe: Experience, Prospects and Policy Challenges


  • de Bijl, Paul W.J.
  • Peitz, Martin


This paper discusses the development of local loop unbundling in telecommunications markets throughout the European Union. It elaborates on the regulatory framework in Europe and provides an overview of recent experiences in Europe. Different types of unbundling, allowing for different types of entry and services provided by entrants, are discussed. This paper also explores the challenges for policy and regulation that arise because of unbundling and recent, related technological developments in the markets for fixed voice telephony and broadband internet access, particularly the emergence of packet-switched telephony such as VoIP.

Suggested Citation

  • de Bijl, Paul W.J. & Peitz, Martin, 2005. "Local Loop Unbundling in Europe: Experience, Prospects and Policy Challenges," MPRA Paper 2511, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:2511

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    References listed on IDEAS

    1. de Bijl, Paul W. J. & Peitz, Martin, 2004. "Dynamic regulation and entry in telecommunications markets: a policy framework," Information Economics and Policy, Elsevier, vol. 16(3), pages 411-437, September.
    2. C. Doyle, 2000. "Local loop unbundling and regulatory risk," Competition and Regulation in Network Industries, Intersentia, vol. 1(1), pages 33-55, September.
    3. Bourreau, Marc & Dogan, Pinar, 2005. "Unbundling the local loop," European Economic Review, Elsevier, vol. 49(1), pages 173-199, January.
    4. Juan Delgado & Jerome Fehrenbach & Robert Klotz, 2004. "The price of access: the unbundling of the local loop in the EU," Chapters,in: The Economics of Antitrust and Regulation in Telecommunications, chapter 9 Edward Elgar Publishing.
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    Cited by:

    1. Inderst, Roman & Peitz, Martin, 2011. "Netzzugang, Wettbewerb und Investitionen," ZEW Discussion Papers 11-025, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    2. Klein, Gordon & Wendel, Julia, 2014. "Innovation in European telecommunication regulation: The diffusion of regulatory remedies," 20th ITS Biennial Conference, Rio de Janeiro 2014: The Net and the Internet - Emerging Markets and Policies 106862, International Telecommunications Society (ITS).
    3. Daniel Montolio & Elisa Trujillo, 2012. "What drives investment in telecommunications? The role of regulation, firms’ internationalization and market knowledge," Working Papers 2012/1, Institut d'Economia de Barcelona (IEB).
    4. Okamoto, Yoshikazu & Nakamura, Akihiro, 2013. "The influence of local loop unbundling on investment by incumbent telecommunications operators in the OECD member countries," 24th European Regional ITS Conference, Florence 2013 88499, International Telecommunications Society (ITS).
    5. Michał Grajek & Lars-Hendrik Röller, 2012. "Regulation and Investment in Network Industries: Evidence from European Telecoms," Journal of Law and Economics, University of Chicago Press, vol. 55(1), pages 189-216.
    6. Baranes, Edmond & Bourreau, Marc, 2005. "An Economist's Guide to Local Loop Unbundling," MPRA Paper 2440, University Library of Munich, Germany.
    7. de Bijl, Paul & Peitz, Martin, 2008. "Innovation, convergence and the role of regulation in the Netherlands and beyond," Telecommunications Policy, Elsevier, vol. 32(11), pages 744-754, December.
    8. Jason WHALLEY & Peter CURWEN, 2008. "Is Functional Separation BT-Style the Answer?," Communications & Strategies, IDATE, Com&Strat dept., vol. 1(71), pages 145-168, 3rd quart.
    9. de Bijl, P.W.J. & Peitz, M., 2007. "Innovation, Convergence and the Role of Regulation in the Netherlands," Discussion Paper 2007-016, Tilburg University, Tilburg Law and Economic Center.
    10. repec:ces:ifodic:v:4:y:2006:i:3:p:14567467 is not listed on IDEAS
    11. Montolio Daniel & Trillas Francesc & Trujillo-Baute Elisa, 2014. "Regulatory Environment and Firm Performance in EU Telecommunications Services," Review of Network Economics, De Gruyter, vol. 13(3), pages 271-302, September.
    12. Emanuele BACCHIOCCHI & Massimo FLORIO & Marco GAMBARO, 2008. "Telecom prices, regulatory reforms, and consumers’ satisfaction: evidence for 15 EU countries," Departmental Working Papers 2008-10, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano, revised 20 Jun 2008.
    13. Nikolaos Georgantzis & Carlos Gutiérrez-Hita, 2008. "Service provision on a network with endogenous consumption capacity," Working Papers. Serie AD 2008-01, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    14. 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.
    15. Inderst, Roman & Peitz, Martin, 2012. "Network investment, access and competition," Telecommunications Policy, Elsevier, vol. 36(5), pages 407-418.
    16. Veith, Tobias, 2010. "The national regulatory structure against the background of the European regulatory system," ZEW Discussion Papers 10-089, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    17. Paul de Bijl & Martin Peitz, 2006. "Broadband Access in Europe: Challenges for Policy and Regulation," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 4(3), pages 10-15, October.
    18. Rajabiun, Reza & Middleton, Catherine, 2013. "Regulation, investment and efficiency in the transition to next generation networks: Evidence from the European Union," 24th European Regional ITS Conference, Florence 2013 88536, International Telecommunications Society (ITS).
    19. Paul Bijl & Martin Peitz, 2009. "Access regulation and the adoption of VoIP," Journal of Regulatory Economics, Springer, vol. 35(2), pages 111-134, April.
    20. Peter Curwen & Jason Whalley, 2010. "Implementing Functional Separation in Fixed Telecommunications Markets: The UK Experience," Chapters,in: Regulation and the Evolution of the Global Telecommunications Industry, chapter 11 Edward Elgar Publishing.
    21. Bauer, Johannes M. & Shim, Woohyun, 2012. "Regulation and digital innovation: Theory and evidence," 23rd European Regional ITS Conference, Vienna 2012 60364, International Telecommunications Society (ITS).
    22. repec:cpb:discus:153 is not listed on IDEAS

    More about this item


    local-loop unbundling; VoIP; telecommunications; regulation;

    JEL classification:

    • L50 - Industrial Organization - - Regulation and Industrial Policy - - - General
    • L43 - Industrial Organization - - Antitrust Issues and Policies - - - Legal Monopolies and Regulation or Deregulation
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications


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