The effect of regulation and competition on investment in superfast broadband (SFBB) networks (often referred to as next generation access, or NGA networks) has been subject to a long-standing debate. Some telecommunication operators claim that relaxing regulatory controls could help to boost roll-out of fast networks such as fibre-to-the-home (FTTH), while others claim that regulation does not hamper investment and may improve consumer outcomes in broadband.
In the context of this debate, the European Commission is considering a more ‘ambitious’ reform of the EU Framework governing Electronic Communications. Amongst other questions, the Commission has signalled that it plans to assess how to encourage the deployment of very high capacity networks, while maintaining effective competition and adequate returns on investment. Ofcom is also undertaking a strategic review of the UK telecommunications sector, for which the same questions are relevant.
In this study we seek to inform discussions about what drives superfast broadband through analysis of empirical data. Specifically we (i) compare fixed NGA outcomes across 12 EU and international markets; (ii) describe different regulatory and policy approaches to superfast broadband deployment; (iii) gauge which factors affect consumer outcomes in NGA as well as fixed investment more widely; and (iv) identify potential implications for regulatory objectives. The countries examined in Europe are France, Germany, Italy, Netherlands, Spain, Sweden and UK, while outside Europe, we focus on Australia, Canada, Japan, South Korea and the US.
A key focus is to understand whether the UK and Europe are ‘falling behind’ other regions in superfast broadband and what role the regulatory environment might play, in relation to other factors, in determining NGA outcomes.
The study is available (in English) for download.
See also: Competition & investment: An analysis of the drivers of investment and consumer welfare in mobile telecommunications
