Tough Regulation of Copper Access Slows Down the Migration of Customers Towards Fiber

Abstract:     
A recent study recommends to reinforce copper access regulation in order to promote NGA take-up and penetration. In particular it proposes to strengthen the unbundling obligations and to lower ULL price. However, these recommendations are not consistent with figures from the report itself. Although this has not been highlighted in the report, the figures show that reinforcing copper access regulation impedes the take-up of fiber. Indeed, on the one hand, the take-up rate of fiber is inversely correlated to the copper wholesale access share, and on the other hand it is positively related to the ULL price.

Number of Pages in PDF File: 6

Keywords: broadband access regulation, FTTH, NGA, technological transition

JEL Classification: C12, H54, L51, O33

working papers series