Its been clear for some time that unbundling regulation discourages investment by potential competitors in their own facilities. Now comes a new study providing some hard numbers on just how much is discouraged. The study, released last month by London’s LECG consulting group, and commissioned by European telcos, looks at the connection between “access regulation” and investment in competing broadband platforms. Based on data from 12 European countries, the authors conclude that a 10 percent reduction in the prices for mandated access causes an 18 percent fall in market share for alternative platforms. For Europe as a whole, this could mean E10 billion in lost long-term investment, and E30 billion in GDP loss.
Worthwhile reading for policymakers here in America, as well as their European counterparts.
The Technology Liberation Front is the tech policy blog dedicated to keeping politicians' hands off the 'net and everything else related to technology.