An assessment of the equality of access and no-regulation approaches to next generation networks

Authors:
Duarte Brito;Pedro Pereira;João Vareda
Affiliations:
Universidade Nova de Lisboa, Departamento de Ciências Sociais Aplicadas, Faculdade de Ciências e Tecnologia, 2829-516 Caparica, Portugal and CEFAGE-UE, Palácio do Vimioso, Largo Mar ...;Autoridade da Concorrência, Avenida de Berna, no. 19, 7o, 1050-037 Lisboa, Portugal;Autoridade da Concorrência, Avenida de Berna, no. 19, 7o, 1050-037 Lisboa, Portugal and Instituto Superior Técnico, Instituto de Sistemas e Robótica Torre Norte, 6o, sala 6.11, Av. ...
Venue:
Telecommunications Policy
Year:
2011

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Abstract

The European Commission believes that for the regulation of next generation fixed telecommunications networks the continuity approach is preferable to the equality of access approach and the no-regulation approach. According to the European Commission, (i) functional separation eliminates discrimination and promotes competition, but should only be used as a measure of last resort because it involves various complex trade-offs, whereas (ii) the no-regulation approach fosters investment, at the cost of sacrificing competition. The article agrees that functional separation involves complex trade-offs but disputes the assertion that functional separation necessarily eliminates discrimination and promotes competition. In addition, the article also establishes conditions under which the no-regulation approach does not reduce competition.