Competition via investment,an efficient model for FTTH roll-out

The debate on the regulation of Next General Access started in Europe several years ago. It addresses the question of whether or not fibre access networks should be subject to the same regulation as the copper local loop. This debate is often examined as competition vs. investment. The present paper suggests that the best way for regulation to solve the dilemma is to promote competition through competitive investments in the fibre access market. In particular a combination of individual and co-investment from/among competing fibre operators could provide the desired outcome in terms of efficient investment, coverage, competition, innovation and prices/cost. Such an option corresponds to the choice of several European national regulators. It is also the the historical and highly successful option used in European mobile markets.