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Regulation of NGN: Structural Separation, Access Regulation, or No Regulation at All?

Author

Listed:
  • Fabian KIRSCH

    (Berlin University of Technology)

  • Christian von HIRSCHHAUSEN

    (Dresden University of Technology)

Abstract
Since the introduction of Next Generation Networks (NGNs) by telecommunication network operators, national regulators have begun to adapt their access regulation regimes to the new technological conditions. The regulatory reactions gravitate towards three distinct regulatory trajectories: unregulated competition, access regulation, and structural separation. We first analyze the extent of market power in access Networks in NGNs from a technological perspective. Second, we use case studies to identify patterns between technological and market conditions and regulators' reactions in selected countries. We find that market power in the access network is likely to prevail. Regulatory reactions differ with the extent of infrastructure competition and the regulators position in the trade-off between promoting investment and protecting competition

Suggested Citation

  • Fabian KIRSCH & Christian von HIRSCHHAUSEN, 2008. "Regulation of NGN: Structural Separation, Access Regulation, or No Regulation at All?," Communications & Strategies, IDATE, Com&Strat dept., vol. 1(69), pages 63-84, 1st quart.
    • Handle: RePEc:idt:journl:cs6903
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    References listed on IDEAS

    as
    1. Oecd, 2005. "Next Generation Network Development in OECD Countries," OECD Digital Economy Papers 89, OECD Publishing.
    2. Joshua Gans & Stephen King, 2003. "Access Holidays for Network Infrastructure Investment," Agenda - A Journal of Policy Analysis and Reform, Australian National University, College of Business and Economics, School of Economics, vol. 10(2), pages 163-178.
    3. de Bijl, Paul & Peitz, Martin, 2008. "Innovation, convergence and the role of regulation in the Netherlands and beyond," Telecommunications Policy, Elsevier, vol. 32(11), pages 744-754, December.
    4. Avner Shaked & John Sutton, 1982. "Relaxing Price Competition Through Product Differentiation," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 49(1), pages 3-13.
    5. Graeme Guthrie, 2006. "Regulating Infrastructure: The Impact on Risk and Investment," Journal of Economic Literature, American Economic Association, vol. 44(4), pages 925-972, December.
    6. de Bijl, P.W.J. & Peitz, M., 2007. "Innovation, Convergence and the Role of Regulation in the Netherlands," Discussion Paper 2007-016, Tilburg University, Tilburg Law and Economic Center.
    7. Marcus, J. Scott, 2005. "Is the U.S. Dancing to a Different Drummer?," MPRA Paper 2514, University Library of Munich, Germany.
    8. M. Cave & L. Correa & P. Crocioni, 2006. "Regulating for Non-price Discrimination: The case of UK Fixed Telecoms," Competition and Regulation in Network Industries, Intersentia, vol. 7(3), pages 391-416, September.
    9. Timothy Tardiff, 2007. "Changes in industry structure and technological convergence: implications for competition policy and regulation in telecommunications," International Economics and Economic Policy, Springer, vol. 4(2), pages 109-133, August.
    10. Cave, Martin, 2006. "Six Degrees of Separation : Operational Separation as a Remedy in European Telecommunications Regulation," MPRA Paper 3572, University Library of Munich, Germany.
    11. de Bijl, P.W.J. & Peitz, M., 2007. "Innovation, Convergence and the Role of Regulation in the Netherlands," Discussion Paper 2007-016, Tilburg University, Tilburg Law and Economic Center.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Howell, Bronwyn, 2014. "Separation anxieties: Structural separation and technological diffusion in nascent fibre networks," 20th ITS Biennial Conference, Rio de Janeiro 2014: The Net and the Internet - Emerging Markets and Policies 106840, International Telecommunications Society (ITS).
    2. Juan José Ganuza & Karla Perca & Maria Fernanda Viecens Trocello, 2010. "Las Redes de Nueva Generación en España. Situación actual y retos para el futuro," Economic Reports 02-2010, FEDEA.
    3. Scott Marcus & Dieter Elixmann, 2010. "International Regulatory Comparisons: The Evolution of IP-based Fiber," Chapters, in: Anastassios Gentzoglanis & Anders Henten (ed.), Regulation and the Evolution of the Global Telecommunications Industry, chapter 9, Edward Elgar Publishing.
    4. Gonçalves, Ricardo & Nascimento, Álvaro, 2010. "The momentum for network separation: A guide for regulators," Telecommunications Policy, Elsevier, vol. 34(7), pages 355-365, August.
    5. Florian Engl & Nina Czernich & Tobias Kretschmer & Thomas Kiessl & Oliver Falck, 2009. "Regulatory Framework for Next-Generation Access Networks Across Europe," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 7(1), pages 35-40, 04.
    6. repec:ers:journl:v:xv:y:2012:i:sie:p:157-194 is not listed on IDEAS
    7. Yang, Yu & Song, Luona & Lv, Tingjie & Chen, Xia, 2017. "Analysis on the Key Factors of the Network Separation in China in the Era of Telecommunications 4.0," 14th ITS Asia-Pacific Regional Conference, Kyoto 2017: Mapping ICT into Transformation for the Next Information Society 168550, International Telecommunications Society (ITS).
    8. Isabel Soares & Paula Sarmento, 2012. "Unbundling in the Telecommunications and the Electricity Sectors: How Far should it Go?," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 157-194.
    9. Fabian Queder, 2020. "Towards a vertically separated broadband infrastructure: The potential role of voluntary separation," Competition and Regulation in Network Industries, , vol. 21(2), pages 143-165, June.
    10. repec:ces:ifodic:v:7:y:2009:i:1:p:14567010 is not listed on IDEAS
    11. repec:vuw:vuwscr:19314 is not listed on IDEAS
    12. Howell, Bronwyn, 2014. "Structural Separation and Technological Diffusion," Working Paper Series 19314, Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation.
    13. Beltrán, Fernando, 2014. "Fibre-to-the-home, high-speed and national broadband plans: Tales from Down Under," Telecommunications Policy, Elsevier, vol. 38(8), pages 715-729.
    14. Howell, Bronwyn, 2014. "Structural Separation and Technological Diffusion," Working Paper Series 4353, Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation.
    15. Ragoobar, Tricia & Whalley, Jason & Harle, David, 2010. "The interplay between market factors and regulation in next-generation broadband: evidence from Europe," 21st European Regional ITS Conference, Copenhagen 2010: Telecommunications at new crossroads - Changing value configurations, user roles, and regulation 44, International Telecommunications Society (ITS).
    16. Florian Engl & Nina Czernich & Tobias Kretschmer & Thomas Kiessl & Oliver Falck, 2009. "Regulatory Framework for Next-Generation Access Networks Across Europe," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 7(01), pages 35-40, April.

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    More about this item

    Keywords

    Next Generation Network; deregulation; access regulation; structural separation.;
    All these keywords.

    JEL classification:

    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation

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