The Long-Run Effects of Copper Unbundling and the Implications for Fiber

Telecommunications Policy, Forthcoming

55 Pages Posted: 11 Mar 2012 Last revised: 13 Nov 2012

Robert W. Crandall

Brookings Institution; AEI-Brookings Joint Center for Regulatory Studies

Jeffrey A. Eisenach

American Enterprise Institute; NERA Economic Consulting

Allan T. Ingraham

Economists Incorporated; affiliation not provided to SSRN

Date Written: March 9, 2012

Abstract

Policies mandating unbundling of copper telecommunications networks have now been in place for more than 15 years, and it is thus becoming possible to study their long-run effects. We review the existing evidence on the effects of copper unbundling, and present new empirical results based on our own regression analyses of broadband penetration in OECD countries from 2001 through 2010. We find that the long-run effect of copper unbundling on household broadband penetration rates is negative, a finding which is consistent with previous research. In this context, we assess the status of fiber to the premises (FTTP) networks. We conclude that copper unbundling has probably slowed the deployment of FTTP infrastructures, especially in Europe, and that proposals to mandate unbundling of fiber networks are likely to further deter FTTP deployment.

Suggested Citation

Crandall, Robert W. and Eisenach, Jeffrey A. and Ingraham, Allan T., The Long-Run Effects of Copper Unbundling and the Implications for Fiber (March 9, 2012). Telecommunications Policy, Forthcoming . Available at SSRN: https://ssrn.com/abstract=2018929 or http://dx.doi.org/10.2139/ssrn.2018929

Robert Crandall

Brookings Institution ( email )

1775 Massachusetts Ave. NW
Washington, DC 20036-2188
United States
202-797-6291 (Phone)
202-797-6181 (Fax)

AEI-Brookings Joint Center for Regulatory Studies

1150 17th Street, N.W.
Washington, DC 20036
United States

Jeffrey A. Eisenach (Contact Author)

American Enterprise Institute ( email )

1150 17th Street, N.W.
Washington, DC 20036
United States

NERA Economic Consulting

1255 23rd Street, NW, Suite 600
Washington, DC 20037
United States
202-466-3510 (Phone)
202-466-3605 (Fax)

HOME PAGE: http://www.nera.com

Allan T. Ingraham

Economists Incorporated ( email )

2121 K St NW
Suite 1100
Washington, DC 20037
United States
202-747-3540 (Phone)

HOME PAGE: http://www.naviganteconomics.com

affiliation not provided to SSRN

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