 Implications of regulation for entry and investment in the local loopKostis Christodoulou and Kiriakos Vlahos Telecommunications Policy, vol. 25, issue 10-11, 743-757 Abstract: A number of countries around the world are trying to promote competition at the local loop as demand for higher bandwidth to the home increases. Different technologies (xDSL, cable modems, and wireless local loop) offer alternative solutions and the issue for regulators is to design a framework that promotes competition and investment. Regulators can promote competition in a number of ways, but two "pure" strategies are services and infrastructure competition. This paper models the regulator and incumbent-entrant interactions explicitly in order to understand how the structure of the voice services might evolve under different regulatory frameworks. Our analysis suggests that a "mix" of infrastructure and service competition like the one promoted in Netherlands, stimulates investment by incumbents and entrants alike and offers better consumer benefits. The message for policy makers is that the introduction of "sunset clauses" provides new entrants with strong incentives to invest while allowing them to enter in service competition and to acquire important knowledge about their new market. Keywords: Local; loop; Unbundling; Regulation; Agent; Based; simulation (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:telpol:v:25:y::i:10-11:p:743-757 Ordering information: This journal article can be ordered from Access Statistics for this article Telecommunications Policy is currently edited by Erik Bohlin More articles in Telecommunications Policy from Elsevier |
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