Next generation network: How to stimulate investment while maintaining a competitive market

Abstract

High-speed communication networks are the basic infrastructure for a whole range of next generation communication services. They can induce a wave of innovations and eventually lead to growth and new employment. However, large investments will be needed to generate Next Generation Networks (NGN) and the risks for the investor will be substantial. On the other hand, investors can create monopolistic bottlenecks which prevent competitors from gaining access to essential infrastructure. As a consequence, uncompetitive markets will emerge. The following article proposes a regulatory system which creates incentives for investment while safeguarding competition.