The regulation of Next generation access – In “Monitoring EU Telecoms Policy”

This paper, published by NEREC, comments on the 2009 European Commission draft recommendation on regulated access to next generation access (NGA), and considers the wider context in terms of market developments – namely the development of internet-based applications and content delivery and the growth of wireless broadband, devices and applications.

The objective of the recommendation is to clarify the regulatory approach to NGA and to avoid “inappropriate divergence  of regulatory approaches.” The development of a framework for regulation of NGA ahead of market analysis and assessment of significant market power (SMP) is welcome, since it provides potential investors with greater clarity ahead of investment. However, it is important that ex ante guidance is not overly prescriptive given the uncertainty surrounding the market for NGA and the need to allow future market and regulatory innovation.