A Unified Framework for Open Access Regulation of Telecommunications Infrastructure: Review of the Economic Literature and Policy Guidelines

Abstract

The concept of Open Access (OA) plays a central role in the ongoing academic and political debate on the appropriate regulatory framework for next-generation access net- works in Europe. However, clear policy conclusions on the effect of OA regulation were usually precluded by a fundamental lack in common understanding what actually de- fines an OA policy and along which dimensions OA regulation can be structured. This paper attempts to reconcile these diverse views by offering a definition and a conceptual framework by which OA endeavors can be identified and uniquely classified. The frame- work encompasses, among others, mandated OA regulation of vertically integrated firms, public-sector participation, co-investments, and OA in the context of vertical separation. Along this framework, the extant economic literature is surveyed with regard to aspects of competition and social welfare, investment and innovation, as well as practical and legal issues. Based on these insights, a policy guideline is developed that shall assist policy makers in identifying the appropriate OA scenario for the regulation of telecom- munications infrastructure.

Keywords: Next Generation Access Networks, Open Access Regulation, Non-Discrimination, Co-investment, Vertical Separation, Public-Sector Participation

JEL Classification: L96, L51