Reconsidering Ex Ante Regulation in the Dutch Electronic Communications Market

COMMUNICATIONS & STRATEGIES, no.98, 2nd quarter 2015, p 61

23 Pages Posted: 20 Dec 2015

See all articles by Viktoria Kocsis

Viktoria Kocsis

University of Amsterdam - SEO Economic Research

Paul Bijl

Radicand Economics; Utrecht University - School of Economics; Tilburg Law and Economics Center (TILEC)

Rob van der Noll

Authority for Consumers & Markets (ACM)

Bert Tieben

University of Amsterdam - SEO Economic Research

Date Written: April 1, 2015

Abstract

In this study we address the economic performance of ex ante regulation of the telecommunications industry and compare this regulatory framework to alternative approaches that respond better to the developments in the sector. The focus is on the Dutch market with two fixed networks with national coverage and a potentially converging mobile market. The economic effects of the ex ante regulatory approach are mixed. On the one hand it promoted lower retail prices for the benefit of consumers. On the other hand, the notion of a 'ladder of investment' – the transition from service-based competition to infrastructure competition – did not fully materialize. A central conclusion is that regulation needs to focus less on static efficiency, that is, competition, in favor of dynamic efficiency, namely investments and innovations. This shift in emphasis would be more in line with social welfare as the ultimate objective of regulation. It would require regulation to create more room for market forces (deregulation) and therefore to diverse and new business models. Deregulation, however may need to be complemented with ex post supervision and a reconsidered form of access regulation as a backstop option.

Keywords: ex ante regulation, deregulation, negotiation, co-investment, asymmetric vs. symmetric approach

JEL Classification: L51, L96, L13, K23

Suggested Citation

Kocsis, Viktoria and Bijl, Paul and van der Noll, Rob and Tieben, Bert, Reconsidering Ex Ante Regulation in the Dutch Electronic Communications Market (April 1, 2015). COMMUNICATIONS & STRATEGIES, no.98, 2nd quarter 2015, p 61, Available at SSRN: https://ssrn.com/abstract=2705423

Viktoria Kocsis (Contact Author)

University of Amsterdam - SEO Economic Research ( email )

Roetersstraat 29
Amsterdam, 1018 WB
Netherlands

Paul Bijl

Radicand Economics ( email )

Woerden
Netherlands

HOME PAGE: http://www.radicandeconomics.com

Utrecht University - School of Economics

Kriekenpitplein 21-22
Adam Smith Building
Utrecht, +31 30 253 7373 3584 EC
Netherlands

Tilburg Law and Economics Center (TILEC) ( email )

Warandelaan 2
Tilburg, 5000 LE
Netherlands

Rob Van der Noll

Authority for Consumers & Markets (ACM) ( email )

Muzenstraat 41
Den Haag, 2511 WB
Netherlands
+31 70 7222581 (Phone)

Bert Tieben

University of Amsterdam - SEO Economic Research ( email )

Roetersstraat 29
Amsterdam, 1018 WB
Netherlands

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