A critical appraisal of the European Commission´s policy towards regulating next generation communications networks

Fiber-deployment of telecommunications networks is currently a great challenge for sector-specific
regulators, national governments, as well as for investing operators. One of the most controversial
regulatory issues in Europe (and elsewhere) is whether the emerging next generation access (NGA)
infrastructure should be subjected to cost-based access regulation or whether at least a temporary
removal of ex ante obligations ("regulatory holidays") should be granted.
In answering this question we examine the current and foreseeable EU regulatory framework and
show that it does not provide positive incentives for NGA deployment and increasing penetration
rates. On the basis of an international comparison with the most recent data on NGA deployment and
penetration, it appears, in turn, that deregulatory and/or state aid driven approaches targeted at the
demand (subscribers) and supply side (coverage) are more promising. (author's abstract)