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Working paper / Communications and Media

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

Author(s): BOURREAU Marc, CAMBINI Carlo, DOGAN Pinar

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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.