Net Neutrality, Unbundling, and their Effects on International Investment in Next-Generation Networks

Net Neutrality, Unbundling, and their Effects on International Investment in Next-Generation... This paper examines the net neutrality debate in countries outside the U.S., particularly in the EU. Most appear to have endorsed the idea of net neutrality and believe that policies promoting unbundling – mandatory network sharing – will ensure neutral networks. We argue that unbundling may not necessarily affect incumbent incentives to prioritize certain traffic. Because unbundling can affect investment incentives, we use a new dataset to examine empirically the effects of unbundling on investment in new fiber networks in Europe. We find a significant negative correlation between the number of unbundled DSL connections per capita and the number of fiber connections. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Review of Network Economics de Gruyter

Net Neutrality, Unbundling, and their Effects on International Investment in Next-Generation Networks

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Publisher
Walter de Gruyter
Copyright
Copyright © 2009 by the
ISSN
2194-5993
eISSN
1446-9022
D.O.I.
10.2202/1446-9022.1171
Publisher site
See Article on Publisher Site

Abstract

This paper examines the net neutrality debate in countries outside the U.S., particularly in the EU. Most appear to have endorsed the idea of net neutrality and believe that policies promoting unbundling – mandatory network sharing – will ensure neutral networks. We argue that unbundling may not necessarily affect incumbent incentives to prioritize certain traffic. Because unbundling can affect investment incentives, we use a new dataset to examine empirically the effects of unbundling on investment in new fiber networks in Europe. We find a significant negative correlation between the number of unbundled DSL connections per capita and the number of fiber connections.

Journal

Review of Network Economicsde Gruyter

Published: Mar 1, 2009

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