Dark fiber price regulation in the absence of facilities-based competition
Vitor Miguel Ribeiro ()
Additional contact information
Vitor Miguel Ribeiro: ANACOM, Autoridade Nacional de Comunicações
Economia e Politica Industriale: Journal of Industrial and Business Economics, 2018, vol. 45, issue 2, 243-278
Abstract Contrary to copper, fiber is a segmented vital input. This means that, even though a National Regulatory Authority may regulate active fiber, the owner of the fiber network infrastructure may distort retail competition and obtain a sufficiently high wholesale revenue through the sale of dark fiber if this is not subject to regulatory intervention. Given the recent trend in favor of access price regulation of dark fiber in Europe, the analysis evaluates which wholesale price control method should be applied considering that the market structure of the telecommunications industry is the monopolistic bottleneck. Three regulatory options are tested against each other: active-minus regulation, cost-based regulation applied to both layers of the segmented vital input and equivalence of inputs. The imposition of active-minus regulation improves investment incentives and social welfare compared to the alternative methods.
Keywords: Vertical integration; Dark fiber; Active fiber; Wholesale price discrimination; Active-minus; Equivalence of inputs (search for similar items in EconPapers)
JEL-codes: L11 L13 L51 L96 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
http://link.springer.com/10.1007/s40812-017-0075-8 Abstract (text/html)
Access to the full text of the articles in this series is restricted.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:spr:epolin:v:45:y:2018:i:2:d:10.1007_s40812-017-0075-8
Ordering information: This journal article can be ordered from
Access Statistics for this article
Economia e Politica Industriale: Journal of Industrial and Business Economics is currently edited by C. Cambini, M.G. Colombo, L. Piscitello, L. Rondi and A. Zanfei
More articles in Economia e Politica Industriale: Journal of Industrial and Business Economics from Springer, Associazione Amici di Economia e Politica Industriale
Bibliographic data for series maintained by Sonal Shukla ().