Essay Example on Thelle Basalisco 2013 examined the benefits of using Broadband Unbundling









Thelle Basalisco 2013 examined the benefits of using Broadband Unbundling in the US today which was used by EU a long time before Unbundling refers to provide local asses loop to rival companies The FCC and U S court has denied this issue in 2003 and adopted narrowband unbundling This allows U S and EU adopting a different broadband policy where former focused on infrastructure based competition and EU on service based competition through broadband unbundling This paper mainly determined whether the Unbundling was reliable for the U S as compared to EU in the present context The EU regulators focused on facilitating the rival companies with incumbent s companies local access without developing and investing in new technology which makes difficult for incumbent companies and new entrants to change their mind of shifting from copper to fiber based since the regulation is such that new entrants or the competitors will be available access to any assets of fixed telecom incumbents This sort of unbundling and regulation has made impacts on investors to enhance or shift to fiber based for NGA infrastructure and low motivation in investment and competition 

The adoption of and leading point was same but with a different strategy because Europe has limited cable infrastructure to manipulate retail market share and to secure national monopolist power which motivates European Regulators to engage in service based infrastructure competition in comparison with U S European Commission 2014 Similarly the U S which promotes facilities based competition ensured that the competitor or new entrants can enter or deter entry with their own wills and capital This type of policy encouraged competition and provides network industries with many possibilities for firms to enter in the fiber based network as well as invest in Next Generation Access The entry level as well as supply charge is low in the U S as compared to EU The authors concluded the US infrastructure based competition to be more dominant than EU service based policy Due to competitive and flexible regulation the U S telecom sector is already at high peak as the development of fiber to home and NGA networks which are not seen in EU In such innovative and competing phase the adoptions of European policy which was given interest by some American regulators seems to be questionable where the European Commission s Vice President also want to adopt U S policy She assured to eliminate fixed broadband regulation which reduces investment and competition in European Telecom market European Commission 2012 In her July 2012 policy statement European Commission s Vice President stated

 Today in Europe we stand on the brink of a new digital transition New applications and services from e Health to the cloud to Connected TV stand to offer huge benefits for citizens and businesses and an overall boost to our economy But many of these new ideas cannot run on copper based ADSL broadband networks We cannot let our networks be the bottleneck for this amazing opportunity we need investment in new high speed infrastructure But the transition to an expensive new generation of high speed networks co existing with the old poses special challenges Though the public sector can help the real heavy lifting must be done by private investment p 1 This indicates U S being on right path and authors also suggested EU to adopt U S policy of easier regulation for fixed telecom Moreover Yoo 2014 determined the U S and European broadband technologies comparing European service based competition influence by telephone style regulation with U S facilities based competition and notice that the U S is far ahead of European models in broadband metrics in 2011 and 2012 and all the rumors being European model more successful than the U S was proved wrong

According to Yoo i U S has High Speed Access to NGA 25 Mbps which cover the whole nation around 82 which seems less in Europe of 54 ii More Fiber placement than copper fiber to the premises FTTP coverage of around 23 in the U S and only 12 in EU iii Flexible policies and competition models the U S motivating private companies and facilitating new entrants with their own investing networks whereas Europe making broadband as a public utility and promoting service based competition to provide new entrants with incumbents facilities i e unbundling at wholesale cost iv Download and Uploading speed advertisement actual speed and wholesale price is also better than Europe The U S broadband is cheaper than EU if the tiers are less than 12mbps The writer concluded that the U S regulatory approach was best to enhanced competition favoring higher facilities to the public However the author suggests simple and adaptable regulation best in fostering competition investment and broadband coverage rather than engaging and depending on only one technology

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