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On access pricing in telecoms: theory and European practice

Martin Peitz

Telecommunications Policy, vol. 27, issue 10-11, 729-740

Abstract: This paper discusses European legislation concerning interconnection between telecommunications operators. An important and distinct element of regulatory policy in the European Union is that operators with significant market power are required to provide cost-based interconnection whereas other operators are not required to provide such cost-based interconnection. It analyzes the consequences of different interconnection charges for competition and investments. Using recent insights from the theoretical literature on competition in telecommunications, it finds that the socially optimal regulatory policy concerning interconnection has the same characteristics as that adopted in the European Union.

Keywords: Access; pricing; Interconnection; Competition; Consumer; Surplus; EU; Policy (search for similar items in EconPapers)
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