Access regulation and the transition from copper to fiber networks in telecoms

Abstract

In this paper we study the impact of different forms of access obligations on firms’ incentives to migrate from the legacy copper network to ultra-fast broadband infrastructures. We analyse three different kinds of regulatory interventions: geographical regulation of access to copper networks - where access prices are differentiated depending on whether or not an alternative fiber network has been deployed; access obligations on fiber networks and its interplay with wholesale copper prices; and, finally, a mandatory switch-off of the legacy copper network - to foster the transition to the higher quality fiber networks. Trading-o¤ the different static and dynamic goals, the paper provides guidelines and suggestions for policy makers’ decisions.