Regulation and Investment in Network Industries: Evidence from European Telecoms

Grajek, Michał; Röller, Lars‐Hendrik

doi:10.1086/661196

Cited by 133 publications

(68 citation statements)

References 37 publications

(24 reference statements)

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“…According to the ICT related empirical literature, the dynamics of the adoption process, which is due to network effects or consumer inertia, as well as of the investment process, which is mainly determined by the extent of adjustment costs, can be captured by including the lagged dependent variable as an additional righthand side explanatory variable (Kiiski & Pohjola, 2002;Grajek & Röller, 2011). In view of the discussion presented in sections 3 and 4, the dynamic reduced-form models, in which NGN investment (superscript c denotes coverage in equation 1) and NGN adoption (superscript a denotes adoption in equation 2) are expressed in logs 17 for EU member state i and year t, read as follows: …”

Section: Dynamic Ngn Investment and Adoption Modelsmentioning

confidence: 99%

How to Fill the Digital Gap? The (Limited) Role of Regulation

Briglauer¹,

Cambini

Melani

2015

SSRN Journal

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Die Dis cus si on Pape rs die nen einer mög lichst schnel len Ver brei tung von neue ren For schungs arbei ten des ZEW. Die Bei trä ge lie gen in allei ni ger Ver ant wor tung der Auto ren und stel len nicht not wen di ger wei se die Mei nung des ZEW dar.Dis cus si on Papers are inten ded to make results of ZEW research prompt ly avai la ble to other eco no mists in order to encou ra ge dis cus si on and sug gesti ons for revi si ons. The aut hors are sole ly respon si ble for the con tents which do not neces sa ri ly repre sent the opi ni on of the ZEW. How to Fill the Digital Gap?The ( AbstractThis paper provides evidence on the migration from an "old" technology to a "new" technology, taking into account the impact that regulatory interventions on the old one might have on the incentives to invest and adopt the new one. This analysis has been applied to a sample of EU27 countries using panel data from 2004 to 2014 on the adoption, coverage and take-up rate of ultra-fast broadband infrastructures, whose development is one of the flagship initiatives of the Europe 2020 programmes.Results show that a 1% increase in the regulated price to access the old technology increases the adoption and the investment on the new broadband technology by ~0.45% and ~0.47%. These effects are not homogeneous across countries and are weakened in Eastern European countries, where the existing old broadband infrastructures are less developed than in the rest of Europe. It has also been shown that the access price to old networks negatively affects the take-up rate of the new technology-based services, thus calling for the need of more specific and complementary demand side policy incentives to enhance service adoption.~ 1 ~

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Section: Dynamic Ngn Investment and Adoption Modelsmentioning

confidence: 99%

How to Fill the Digital Gap? The (Limited) Role of Regulation

Briglauer¹,

Cambini

Melani

2015

SSRN Journal

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“…Moreover, the related literature (e.g. Grajek & Röller, 2011) suggests that there might be reverse causality patterns between investment decisions on the one hand and regulation or competition variables on the other. GMM estimators provide us with internal instruments, which appears to be a superior strategy to using external instruments in view of a sufficient number of time periods (t = 9) and as we have to treat several independent variables as (potentially) endogenous.…”

Section: Estimation and Identification Strategymentioning

confidence: 99%

The Impact of Regulation and Competition on the Migration from Old to New Communications Infrastructure: Recent Evidence from EU27 Member States

Briglauer¹

2014

SSRN Journal

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Die Dis cus si on Pape rs die nen einer mög lichst schnel len Ver brei tung von neue ren For schungs arbei ten des ZEW. Die Bei trä ge lie gen in allei ni ger Ver ant wor tung der Auto ren und stel len nicht not wen di ger wei se die Mei nung des ZEW dar.Dis cus si on Papers are inten ded to make results of ZEW research prompt ly avai la ble to other eco no mists in order to encou ra ge dis cus si on and sug gesti ons for revi si ons. The aut hors are sole ly respon si ble for the con tents which do not neces sa ri ly repre sent the opi ni on of the ZEW. [vi] AbstractFibre-deployment of next-generation communications networks is currently a major challenge for investing firms as well as for national regulators and is also subject to hot debates at EU level. This work examines the role of regulatory policies and competition controlling for relevant supply and demand side factors. Our econometric model employs dynamic panel data methods that take into account potential endogeneity due to omitted heterogeneity, reverse causality and the dynamic investment specification.Our results indicate that relevant forms of previous broadband access regulations have had a negative impact on investment in new infrastructure. Furthermore, infrastructure-based competition from mobile operators and the replacement effect stemming from the incumbents' existing infrastructure exert a negative impact on ex ante investment incentives. As regards the dynamics of the adjustment process, we find that there are both short-term and long-term effects towards the desired infrastructure level.[1]

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“…maksimalaus pelno gavimą. Natūraliųjų monopolijų veiklos reguliavimo būtinybė (DeVany, Walls, 1994;Peltzman, Winston, 2001;Toivanen, Waterson, 2005;Hori, Mizuno, 2006;Horvath, 2011;Goldfarb, Mo, 2011;Grajek, Röller, 2012;Minamihashi, 2012 ir kituose darbuose) grindžiama tokiomis nuostatomis:…”

Section: Natūralių Monopolijų Reguliavimo Nuostatosunclassified

Monopolinių kainų reguliavimo metodų privalumai ir trūkumai

Maksvytienė¹,

Dapkus²

2014

MOSR

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Monopolinių kainų reguliavimo metodų privalumai ir trūkumaiStraipsnyje analizuojama monopolijų reguliavimo, pasitelkiant kainų mechanizmą, problematika. Naudojant literatūros analizės metodą, analizuojami pagrindiniai kainų reguliavimo metodai, atskleidžiamos jų silpnosios pusės bei privalumai. Naujausios monopolijų reguliavimo technologijos siejamos su "benchmarking" (liet. pozicionavimo) sąvoka, kuri apima geriausios praktikos perėmimą, o tai reiškia, kad kainos nustatomos orientuojantis ne į egzistuojančius įmonės kaštus, o į sektoriaus lyderius regiono ar pasaulio mastu. Taip suteikiamas išorinis stimulas tobulinti monopolijų veiklą. Raktiniai žodžiai: monopolijos, reguliavimo metodai, kainos pozicionavimas.The authors analyse the problems of monopoly regulation applying price mechanism. Literature analysis reveals the principal opportunities and weak points of price regulation in attempting to assure efficiency of monopolistic systems. The latest trend in monopoly regulation practice is related with the term "benchmarking", i.e. the process of comparing one's business processes and performance metrics to industry bests or best practices from other industries; thus prices are established on the level of the industry leading firms' cost price. Benchmarking could be processed with national firms, but the international benchmarking could give more space for activity improving. This form of price regulation is proposed to use especially in developing countries where the abuse of monopoly power is a frequent phenomenon.

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Regulation and Investment in Network Industries: Evidence from European Telecoms

Cited by 133 publications

References 37 publications

How to Fill the Digital Gap? The (Limited) Role of Regulation

How to Fill the Digital Gap? The (Limited) Role of Regulation

The Impact of Regulation and Competition on the Migration from Old to New Communications Infrastructure: Recent Evidence from EU27 Member States

Monopolinių kainų reguliavimo metodų privalumai ir trūkumai

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