Investments in broadband networks: competition vs. regulation

In ICT infrastructure the expansion of the telecommunications networks in the 1970s and 1980s was carried out by the public sector in most OECD countries. In contrast, the current expansion of the old telecommunications network to a modern digital communications network is taking place in an environment characterised by competition in which the national regulation authorities set out the general conditions. In their contribution Nina Czernich and Oliver Falck, Ifo Institute, discuss the necessity of government regulators taking into account the technological dynamics in the expansion of the ICT infrastructure. They assess the necessity as well as the negative effects of regulations in the area of existing network components, new networks in conurbations and new networks in rural areas and discuss different types of regulation.