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Regulation of NGN: Structural Separation, Access Regulation, or No Regulation at All?

  • Kirsch, Fabian
  • Hirschhausen, Christian von

Since the introduction of Next Generation Networks (NGNs) by telecommunication network operators, national regulators have begun to adapt their access regulation regimes to the new technological conditions. The regulatory reactions gravitate towards three distinct regulatory trajectories: unregulated competition, access regulation, and structural separation. We first analyze the extent of market power in access Networks in NGNs from a technological perspective. Second, we use case studies to identify patterns between technological and market conditions and regulators' reactions in selected countries. We find that market power in the access network is likely to prevail. Regulatory reactions differ with the extent of infrastructure competition and the regulators position in the trade-off between promoting investment and protecting competition.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 8822.

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Date of creation: Mar 2008
Date of revision:
Handle: RePEc:pra:mprapa:8822
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  1. M. Cave & L. Correa & P. Crocioni, 2006. "Regulating for Non-price Discrimination: The case of UK Fixed Telecoms," Competition and Regulation in Network Industries, Intersentia, vol. 7(3), pages 391-416, September.
  2. Oecd, 2005. "Next Generation Network Development in OECD Countries," OECD Digital Economy Papers 89, OECD Publishing.
  3. Graeme Guthrie, 2006. "Regulating Infrastructure: The Impact on Risk and Investment," Journal of Economic Literature, American Economic Association, vol. 44(4), pages 925-972, December.
  4. Joshua Gans & Stephen King, 2003. "Access Holidays for Network Infrastructure Investment," Monash Economics Working Papers archive-39, Monash University, Department of Economics.
  5. Paul de Bijl & M. Peitz, 2008. "Innovation, convergence and the role of regulation in the Netherlands and beyond," CPB Discussion Paper 108, CPB Netherlands Bureau for Economic Policy Analysis.
  6. Shaked, Avner & Sutton, John, 1982. "Relaxing Price Competition through Product Differentiation," Review of Economic Studies, Wiley Blackwell, vol. 49(1), pages 3-13, January.
  7. 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.
  8. Cave, Martin, 2006. "Six Degrees of Separation : Operational Separation as a Remedy in European Telecommunications Regulation," MPRA Paper 3572, University Library of Munich, Germany.
  9. Marcus, J. Scott, 2005. "Is the U.S. Dancing to a Different Drummer?," MPRA Paper 2514, University Library of Munich, Germany.
  10. Guthrie, Graeme, 2006. "Regulating Infrastructure: The Impact on Risk and Investment," Working Paper Series 3851, Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation.
  11. Timothy Tardiff, 2007. "Changes in industry structure and technological convergence: implications for competition policy and regulation in telecommunications," International Economics and Economic Policy, Springer, vol. 4(2), pages 109-133, August.
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