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The Economics of Next Generation Access Networks and Regulatory Governance: Towards Geographic Patterns of Regulation

Author

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  • Amendola, Giovanni Battista
  • Pupillo, Lorenzo Maria

Abstract

This paper examines the mix of technical, regulatory, and business strategy issues that arise in implementing next generation broadband platforms in Europe. Our review of some European studies on NGAN in Europe and our specific focus on the Italian situation, in particular on the competitive situation in Milano, shows the relevant flaw of continuing to advocate national patterns of regulation. In fact, the deployment of NGAN calls for a radical shift of regulation on a geographic level. The recognition that a NGAN business case does exist for OLO in a number of local areas, mainly metropolitan ones, has relevant regulatory implications.In the first place, since the conditions of competition differ significantly among local areas, regulation should promote both incumbents' and OLO's investments in NGAN by limiting ex ante interventions to those enduring economic bottlenecks found at a specific geographic markets level. In the second place, market definition is the most important step in the market analysis procedure to help decide whether to regulate a given service provided over a NGAN or not. We have proposed a taxonomy of local areas that may be adopted in a country like Italy for a correct geographic definition of markets 4 and 5 and, as a consequence, for the imposition of appropriate remedies.

Suggested Citation

  • 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.
    • Handle: RePEc:pra:mprapa:8823
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    File URL: https://mpra.ub.uni-muenchen.de/8823/1/MPRA_paper_8823.pdf
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    References listed on IDEAS

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    1. Pupillo, Lorenzo & Conte, Andrea, 1998. "The economics of local loop architecture for multimedia services," Information Economics and Policy, Elsevier, vol. 10(1), pages 107-126, March.
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    Citations

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    Cited by:

    1. Martin Lundborg, 2010. "Lessons Learned from the Regulation of LLU for the Future Regulation of NGA Networks," Chapters, in: Morten Falch & Jan Markendahl (ed.), Promoting New Telecom Infrastructures, chapter 3, Edward Elgar Publishing.
    2. Scott Marcus & Dieter Elixmann, 2010. "International Regulatory Comparisons: The Evolution of IP-based Fiber," Chapters, in: Anastassios Gentzoglanis & Anders Henten (ed.), Regulation and the Evolution of the Global Telecommunications Industry, chapter 9, Edward Elgar Publishing.
    3. Arnold PICOT & Nico GROVE, 2010. "Closing gaps in the information society: providing high-speed broadband access to rural areas," Departmental Working Papers 2010-17, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    4. Gerli, Paolo & Van der Wee, Marlies & Verbrugge, Sofie & Whalley, Jason, 2018. "The involvement of utilities in the development of broadband infrastructure: A comparison of EU case studies," Telecommunications Policy, Elsevier, vol. 42(9), pages 726-743.
    5. Bruno SORIA & Félix HERNÁNDEZ-GIL, 2010. "Do NGAN Economics Allow for Network Competition?," Communications & Strategies, IDATE, Com&Strat dept., vol. 1(78), pages 23-44, 2nd quart.
    6. 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.
    7. Gerli, Paolo & Van der Wee, Marlies & Verbrugge, Sofie & Whalley, Jason, 2017. "The involvement of utilities in the development of broadband infrastructure: A comparison of EU case studies," 28th European Regional ITS Conference, Passau 2017 169461, International Telecommunications Society (ITS).
    8. Lehr, William H. & Chapin, John M., 2010. "On the convergence of wired and wireless access network architectures," Information Economics and Policy, Elsevier, vol. 22(1), pages 33-41, March.
    9. Tenbrock, Sebastian, 2013. "Die Ausgestaltung des Glasfaserausbaus in Deutschland: Ergebnisse einer empirischen Untersuchung," Arbeitspapiere 136, University of Münster, Institute for Cooperatives.
    10. Gerli, Paolo & Whalley, Jason, 2016. "Infrastructure investment on the margins of the market: The role of niche infrastructure providers in the UK," 27th European Regional ITS Conference, Cambridge (UK) 2016 148671, International Telecommunications Society (ITS).

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    More about this item

    Keywords

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

    JEL classification:

    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General

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