The Influence of Market Developments and Policies on Telecommunication Investment
This paper assembles some evidence on developments in investment by incumbent and alternative telecommunications operators during the period 2000-2005. The quality of data on investment is not in general sufficient to clearly differentiate between investment by new entrants and investment by incumbents. Definitional problems also exist in that the players in communication markets are no longer the traditional alternative operators providing voice services, but a range of service providers including Internet Service Providers and cable television service providers who, through cable modems, provide VoIP services and broadband access. As such it is much harder to make judgements about how policy impacts on investment. Although the period 2000-2005 coincides with the development of broadband in most OECD countries and the implementation of LLU, the paper does not try to show a correlation between investment and unbundling policies.
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