investment and innovation within the area of sector specific regulation in telecoms. The encouragement of efficient investment is … for the emergence of various regulatory concepts of stimulating investment and facility-based competition. Considered here … of investment theory, sunset clauses and dynamic pricing policies. However, most of these concepts had little influence …

We provide evidence of an inherent trade-off between access regulation and investment incentives in telecommunications … accommodates: different investment incentives for incumbents and entrants; a strategic interaction of entrants’ and incumbents … investment. Thus promoting market entry by means of regulated access undermines incentives to invest in facilities …