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Regulation and investment behaviour in the telecommunications sector: policies and patterns in US and Europe
Journal article   Peer reviewed

Regulation and investment behaviour in the telecommunications sector: policies and patterns in US and Europe

Hsihui Chang, Heli Koski and Sumit K. Majumdar
Telecommunications policy, v 27(10), pp 677-699
01 Nov 2003

Abstract

Access pricing Cost determination Interconnection policy Telecommmunications regulation
This paper reports the results of the quantitative analysis of international experience of the relationship between infrastructure investment in the deployment of capacity that can carry large volumes of voice and data traffic and regulatory policy changes in the telecommunications sectors. It looks at the relationship between infrastructure investment for these infrastructure assets and the access pricing régimes for local exchange carriers in the United States and Europe. It then looks at the relationship between various aspects of regulatory and institutional policy changes in Europe and how they affect access prices. The paper finds that a lower access price promotes greater deployment of digital technology among US incumbent local exchange carriers (ILECs). Based on this finding, it suggests that it is in the ILECs interest to have access to their networks encouraged. The European data for interconnection are recent and far reaching conclusions are not feasible, but the findings, however, suggest that competition has worked by facilitating new entry through decreasing interconnection prices, although path dependencies, of existing and traditional concepts, in the mindsets of operators as well as regulators, may account for these findings.

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Collaboration types
International collaboration
Web of Science research areas
Communication
Information Science & Library Science
Telecommunications
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