The relationship between local loop unbundling and the deployment of alternative broadband networks: An empirical analysis
This paper means to add to empirical research on the impact of local loop unbundling (LLU) on broadband networks. In particular, it focuses on broadband investment made by entrants. Starting from late Nineties telecommunications incumbents of several European Union countries have been required to unbundle their local loops. While there is a general consensus on the negative or null impact of unbundling obligations on incumbents' investment, research on the relationship between LLU and new entrants' investment, albeit growing, has not yet reached a coherent body of results. We have tested two propositions. First, service-based entry, which relies on LLU, paves the way to new entrants' subsequent investment in broadband systems (i.e. ladder of investment theory). Second, the price charged for local loop should increase over time in order to have a significant investment in alternative platforms (i.e. the transitory entry assistance theory). The empirical analysis is carried out on a sample of 27 European countries (2002-2009 period). We have collected country-level data on broadband lines and LLU policy indicators. The preliminary results suggest that service-based entry does not lead entrants to a subsequent facility-based entry, casting some doubts on the ladder of investment theory. The short ladder version of the theory has received confirmation instead. At the same time, an increasing price of local loop is not found to stimulate the entrants' investment in alternative broadband networks.
|Date of creation:||2011|
|Contact details of provider:|| Web page: http://www.itseurope.org/|
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 & Vogelsang, Ingo, 0. "How access pricing and entry interact," Telecommunications Policy, Elsevier, vol. 27(10-11), pages 717-727, November.
When requesting a correction, please mention this item's handle: RePEc:zbw:itse11:52217. 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: (ZBW - German National Library of Economics)
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.