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INTERMEDIA

STEPPING UP INVESTMENT

13.04.2018 Share this

By Richard Cadman, Jonathan Kingan and Gita Sorensen

The telecoms infrastructure and services we have today are largely a result of investment by new entrants, spurring incumbents to respond to protect their revenue base. Regulation has enabled competition by, accidentally, allowing sufficient profits in the market to encourage competitive investment. However, regulators are now at risk of jeopardising critical infrastructure investment by applying the same economic principles to a radically different market environment. A focus on short-term price reductions risks deterring infrastructure investments by entrants. Without investment by entrants, incumbents have little incentive to respond and can continue to enjoy a quiet life.

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To get the broadband infrastructure and consumer benefit that are needed, regulators have to abandon the short-term thinking that can stifle new entrants and investment, argue RICHARD CADMAN, JONATHAN KINGAN and GITA SORENSEN

Intermedia Issue:
Volume 46, Issue 01
Issue Date:
April 2018
Theme:
Content: innovation, regulation and markets
Richard Cadman Richard Cadman Consultant, GOS Coonsulting Jonathan Kingan Jonathan Kingan Consultant, GOS Coonsulting Gita Sorensen Gita Sorensen Managing Director, GOS Consulting Limited

Volume 46, Issue 01 Features
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DEBATING IN DC 13.04.2018 Cristina Murroni
YOUNG, SAFE & FREE 13.04.2018 Patrick Geary View All
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