Regulation, investment and efficiency in the transition to next generation networks: Evidence from the European Union

Reza Rajabiun and Catherine Middleton

24th European Regional ITS Conference, Florence 2013 from International Telecommunications Society (ITS)

Abstract: This article explores the impact of public policy, technological change, and the development of Internet connectivity in EU members. The analysis illustrates that the results of previous empirical literature on the interplay between regulation, competition, and investment depend on the construction of indicators employed to evaluate this interaction. Furthermore, the article points out that the traditional policy model and related empirical literature treats fixed capital inputs in networks as a measure of digital infrastructure quality/outcomes. Using broadband speed measurements between 2007 and 2012, the article addresses this gap in the literature and evaluates the determinants of digital infrastructure quality in the EU. The analysis suggests the primary driver of network quality in the medium to long term is the willingness and/or ability of operators to reinvest more of their revenues in network capacity improvements.

Keywords: Broadband Networks; European Union; Regulation; Technological Change; Federalism (search for similar items in EconPapers)
Date: 2013
New Economics Papers: this item is included in nep-eur, nep-ict, nep-net and nep-reg
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:itse13:88536

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