Luigi Stammati

There has been an extensive debate about the role of broadband access regulation on market outcomes. This paper estimates the impact that the different modes of competition have had on broadband take-up to date, using a data set for 27 European Union countries. We find that unbundled local loop (ULL), which is one of the main types of access-based competition in Europe, has had a positive impact on broadband take-up. However, the impact of ULL becomes smaller as its share increases. That is, ULL entry is less effective in areas where ULL take up is already high. Further, there is evidence of a crowding out effect between ULL and inter-platform competition. This means that ULL is less effective in enhancing broadband penetration in the areas where alternative networks already have a significant share of broadband lines.