1 High Speed Broadband Access F ig u r e 2 : H i g h S p e e d - - PDF document

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1 High Speed Broadband Access F ig u r e 2 : H i g h S p e e d - - PDF document

Feb 29, 2024 394 likes •446 views

ACCC Regulatory Conference 2006 Surfers Paradise, Queensland 27-28 July 2006 Local Loop Network Access Martin Cave Martin Cave Warwick Business School, UK Martin.Cave@wbs.ac.uk mec1409 Regulatory criteria: the European model Which

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ACCC Regulatory Conference 2006 Surfers Paradise, Queensland 27-28 July 2006 “Local Loop Network Access” Martin Cave

Martin Cave Warwick Business School, UK Martin.Cave@wbs.ac.uk

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Regulatory criteria: the European model Which are the relevant markets? Which end-to-end value chains exhibit dominance? Where is the source of the dominance? Devise a pro-competitive remedy

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Application to current generation broadband Local loop DSLAMs Backhaul IP Network Retail

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High Speed Broadband Access

F ig u r e 2 : H i g h S p e e d B r o a d b a n d A c c e s s D S L D S L F i b r e F a s t e r D S L F a s t e r D S L F i b r e F i b r e F i b r e C u r r e n t A D S L B r o a d b a n d E v o l u t i o n N e x t G e n e r a t i o n B r o a d b a n d A D S L E v o lu t io n E x c h a n g e mec1409 5

High Speed Broadband Access

C o a x F ib r e F ib re F ib r e F ib r e C u rr e n t C a b le B ro a d b a n d E v o lu tio n N e x t G e n e ra tio n B ro a d b a n d C a b le E v o lu tio n F ib r e F ig u r e 3 : H ig h S p e e d B r o a d b a n d A c c e s s mec1409 6

High Speed Broadband Access

F ib r e C u r r e n t W ir e le B r o a d b a n d E v o lu t io n N e x t G e n e r a t io n B r o a d b a n d W ire le s s E v o lu tio n F ig u r e 4 : H ig h S p e e d B r o a d b a n d A c c e s s
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Broadband access differentiators Speed

  • Derived demand from services
  • Continuous chain of substitution?
  • Mobility
  • fixed, nomadic, mobile

(Mobile (3G) data still very expensive)

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IP LLU? IP IP LLU IP

Cab 88k Metro Node 100 Tier 1 MSAN 1k

Fixed NGNs

Core exch. 200 Local Exch. 1k Conc 5k Metro Node Tier 1 MSAN

PSTN LLU

fibre fibre copper Cab 88k copper MSAN nk < 5k Cab MSAN fibre fibre fibre copper fibre fibre copper copper

PSTN SLU Existing model Core NGN – e.g. BT Access NGN

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Policy implications 1 2.X regimes (fixed, cable, wireless) Forbearance on new access networks, unless wireless is unsuccessful and collective dominance on fixed/cable

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Policy implications 2 1.X regimes Fibre to the cabinet

  • Mandate access up to certain speed (identify

separate ‘high speed’ wholesale market)

  • Mandate access with elevated cost of capital
  • Focus access regulation on ducts
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Structural separation options

Wholesale/Retail Access/rest Ownership separation Joint venture Legal separation BS + separate incentives Business separation (BS) Virtual separation Wholesale division for 3rd parties Accounting separation