Fiber to the Home Unbundling and Retail Competition: Developments in the Netherlands

Abstract

This study provides preliminary insights into how fiber to the home (FTTH) networks affect competition in the broadband Internet access market, and how, and if, competition on FTTH networks can be sustained. This study focuses on the Netherlands, a fast growing FTTH market with regulation mandating unbundling. Even though it is too early to paint a full picture of developments in the competitive landscape, initial findings suggest that rollout of FTTH has positive short-term effects on facilities-based competition. However, the extent to which competition on FTTH networks will develop at both the active operator and retail level remains unclear at this point. Additional uncertainties regarding the future of facilities-based competition suggest continued close monitoring of the market is necessary. Future research should address the extent to which competition at the active and retail level affect innovation.

Keywords: FTTH, broadband, Netherlands, open access, regulation, competition

JEL Classification: L51, L96, L98