Economic replicability tests for next-generation access networks

Konferenzbeitrag

This paper discusses the relevant cost standard for the economic replicability test for Next-Generation Access (NGA) networks, described in the Recommendation on Costing and Non-discrimination adopted by the European Commission. We demonstrate that a cost standard that implies fully fixed and variable cost recovery for the access seeker would be incompatible with the economics of NGA networks and that such a test would deter NGA investment. We show that to reconcile investment and competition, the wholesale price must be a two-part tariff and the economic replicability test should only be based on variable wholesale prices. We underline that during a transition phase, until competitors have secured access to NGA infrastructure, a temporary second test called the 'competition migration test' should be added to ensure incumbent NGA retail prices do not foreclose copper-based efficient entrants. The tests we propose surpass the limits of the 'ladder of investment' theory by including the business migration effect developed by Bourreau et al. (2012).

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: 24th European Regional Conference of the International Telecommunications Society (ITS): "Technology, Investment and Uncertainty", Florence, Italy, 20th-23rd October, 2013

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Economics of Regulation ; Telecommunications
• Thema: Margin squeeze ; Regulation ; Next-generation access networks

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Jaunaux, Laure ; Lebourges, Marc
• Ereignis: Veröffentlichung
• (wer): International Telecommunications Society (ITS)
• (wo): Calgary
• (wann): 2013

Weitere Informationen

• Handle: http://hdl.handle.net/10419/88501
• Letzte Aktualisierung: 10.03.2025, 11:42 MEZ