We study the impact of the access charges of copper and fiber unbundling on an incumbent's incentives to invest in fiber access networks. Once the fiber deployment is in place, the incumbent and the entrant compete for consumers in both copper and fiber markets. We show that when the regulator...

The review of the Universal Service Obligation (USO) has recently been debated in the European Union (EU). Under discussion there was the extension of the current universal service definition to include broadband access, for which some theoretical and empirical support exists. In fact the...