Promoting Next Generation Network Investment Through Adapted Performance Indices
8 Pages Posted: 2 Apr 2012 Last revised: 14 Aug 2012
Date Written: March 30, 2012
Broadband has been identified as a driver for economic growth, and the rollout of these networks is as such of key importance for Europe. Still, the observed rollout speed of NGAN networks is slower in Europe compared to the United States and Asia. The European Commission has identified this need and focuses on broadband coverage and high internet use penetration in its Digital Agenda for Europe. On national level, government and regulators have a twofold objective, translating this EU policy and stimulating competition in the retail market. Performance indices exist to visualize and quantify the performance of national and regional markets. These indices are typically used to show the historic performance of broadband markets. However, future oriented indices should be used to assess the impact of regulatory decisions on social welfare and on other market parties. We introduce such an index and show how it results in other regulatory outcomes compared with existing indices, in the case of wholesale access pricing.
Keywords: NGAN, performance indices, wholesale access pricing
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