Fibre deployment of next-generation high-speed broadband networks is considered to be a decisive development for any information-based society, yet investment activities and especially the adoption of fibre-based broadband services take place only very gradually in most countries. This work identifies the most important determinants of the adoption of fibre-based broadband services, using the most recent panel data from the European Union member states (EU27) for the years from 2004 to 2012. The results show that the stricter previous broadband access regulation has a negative impact on adoption, while competitive pressure from mobile networks affects adoption in a non-linear manner. It appears that the approach of strict cost-based access regulation embedded in the EU regulatory framework is at odds with the targets outlined in the European Commission's "Digital Agenda". Finally, we also find strong evidence for network effects underlying the adoption process. (author's abstract) / Series: Working Papers / Research Institute for Regulatory Economics

Fiber-deployment of future telecommunications networks ("Next Generation Access" - NGA) is currently a major challenge for sector-specific regulators as well as for investing firms. Although the future socio-economic importance of new telecommunications networks is uncontroversial, the related investment activities vary substantially in international comparison. This work intends to identify the most important determinants of previous NGA deployment using data from the EU27 member states for the years 2005 to 2010. For our analysis, we employ latest data on NGA deployment, relevant competition and regulatory indicators as well as other supply and demand side controls. Our econometric model incorporates: i) aggregated country level data; ii) structurally modeled dynamics of the deployment process which allows us to disentangle long-term and short-term effects; finally, iii) we argue that there is no endogeneity problem with respect to investment activities and regulation since we refer to regulation in preceding broadband markets. For our econometric analysis, we employ several dynamic panel data methods, such as GMM and LSDVC. Our results indicate that stricter previous broadband access regulation has a negative impact on NGA deployment. As regards the dynamics of the adjustment process, we find that there are severe adjustment costs and stickiness towards the desired long-term level of NGA infrastructure. (author's abstract) / Series: Working Papers / Research Institute for Regulatory Economics

Although fibre-deployment of next generation access (NGA) broadband networks is considered as a decisive development for any information-based society, investment activities and especially the adoption of fiber-based broadband services take place only very gradually in most countries. This work identifies the most important determinants of NGA broadband adoption, using most recent panel data from the European Union member states (EU27) for the years from 2004 to 2012. The results show that stricter previous broadband access regulation has a negative impact on NGA adoption, while competitive pressure from mobile networks affects NGA adoption in a non-linear manner. It appears that the approach of strict cost-based access regulation embedded in the EU regulatory framework is at odds with the ambitious targets outlined in the European Commission´s "Digital Agenda". Finally, we find strong evidence for network effects underlying the NGA adoption process. (author's abstract) / Series: Working Papers / Research Institute for Regulatory Economics

Fibre deployment of next-generation high-speed broadband networks is considered to be a decisive development for any information-based society, yet investment activities and especially the adoption of fibre-based broadband services take place only very gradually in most countries. This work identifies the most important determinants of the adoption of fibre-based broadband services, using the most recent panel data from the European Union member states (EU27) for the years from 2004 to 2012. The results show that the stricter previous broadband access regulation has a negative impact on adoption, while competitive pressure from mobile networks affects adoption in a non-linear manner. It appears that the approach of strict cost-based access regulation embedded in the EU regulatory framework is at odds with the targets outlined in the European Commission's "Digital Agenda". Finally, we also find strong evidence for network effects underlying the adoption process. (author's abstract) / Series: Working Papers / Research Institute for Regulatory Economics