Speeding up the internet: Regulation and investment in European fiber optic infrastructure

Author
Briglauer, Wolfgang · Cambini, Carlo · Grajek, Michał
Published 2017
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Abstract

In this paper we study how the coexistence of access regulations for legacy (copper)and fiber networks shapes the incentives to invest in network infrastructure. To this end, we develop a theoretical model explaining investment incentives by incumbent telecom operators and heterogeneous entrants and test its main predictions using panel data from 27 EU member states over the last decade. Our theoretical model extends the existing literature by, among other things, allowing for heterogeneous entrants in internet access markets, as we consider both other telecom and cable TV operators as entrants. In the empirical part, we use a novel data set including information on physical fiber network investments, legacy network access regulation and recently imposed fiber access regulations. Our main finding is that more stringent access regulations for both the legacy and the fiber networks harm investments by incumbent telecom operators, but, in line with our theoretical model, do not affect cable TV operators.

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Details

Title
Speeding up the internet: Regulation and investment in European fiber optic infrastructure
Author
Briglauer, Wolfgang · Cambini, Carlo · Grajek, Michał
Year
2017
Published
2017
Type
Research Paper
Language
eng
Keywords
Internet Access Market · Access Regulation · Investment · Infrastructure · Next Generation Networks · Broadband · Telecoms · Cable Operators And Europe · Telecommunications · Economics Of Regulation
This is Version 1 of this record. We added this version on August 6, 2017. This version is based on an original data import from RePEc.