Role of Access Charges in the Migration from Copper to FTTH
41 Pages Posted: 2 May 2011 Last revised: 21 Nov 2011
There are 2 versions of this paper
Role of Access Charges in the Migration from Copper to FTTH
Role of Access Charges in the Migration from Copper to FTTH
Date Written: May 2, 2011
Abstract
We consider a horizontally and vertically differentiated duopoly model in order to analyze both intra- and inter-platform competition in an always covered broadband access market (Copper-Copper, Copper-FTTH and FTTH-FTTH competitions). The model is purely static and does not address dynamic efficiency issues. It shows that the access charges play a significant role in the migration from copper to FTTH and in FTTH investment incentives, provided that consumers are segmented. In FTTH-infrastructure-based competition, investment incentives tend to increase with the copper access charge, while in FTTH-service-based competition, FTTH investment incentives are much more sensitive to the FTTH access charge than to the copper access charge. A comparison of FTTH-infrastructure-based and FTTH-service-based competition in terms of nationwide FTTH coverage and social welfare indicates that FTTH-infrastructure-based competition leads to a higher level of nationwide FTTH coverage and social welfare.
Keywords: Access Charge, FTTH, Investment, Regulation, Intra and Inter Platform Competition
JEL Classification: L51, L96
Suggested Citation: Suggested Citation
Do you have a job opening that you would like to promote on SSRN?
Recommended Papers
-
'Build or Buy' Strategies in the Local Loop
By Pinar Dogan and Marc Bourreau
-
Unbundling and Incumbent Investment in Quality Upgrades and Cost Reduction
By João Vareda
-
Access Regulation and Investment in Next Generation Networks: A Ranking of Regulatory Regimes
By Rainer Nitsche and Lars Wiethaus
-
By João Vareda and Steffen Hoernig
-
By João Vareda and Steffen Hoernig
-
Incentives to Invest and to Give Access to Non-Regulated Next Generation Networks
By Duarte Brito, Pedro Pereira, ...
-
Investment in Next Generation Networks and the Role of Regulation: A Real Option Approach
By Andrea Gavosto, Guido Giacomo Ponte, ...
-
NGA, IP-Interconnection and Their Impact on Business Models and Competition
By Wolfgang Reichl and Ernst-olav Ruhle
-
Ex-Ante Regulation and Co-Investment in the Transition to Next Generation Access
By Marc Bourreau, Carlo Cambini, ...