Encyclopedia of Law and Economics

2019 Edition
| Editors: Alain Marciano, Giovanni Battista Ramello

Public Investments: Broadband

  • Nicola MatteucciEmail author
Reference work entry
DOI: https://doi.org/10.1007/978-1-4614-7753-2_689

Abstract

After a long phase of liberalizations, privatizations, and deregulation, in telecommunications the policy pendulum has moved in the opposite direction, and the State is back in many countries. By mid-2000s, the deployment of first-generation broadband communications had reached high levels of diffusion and, thanks to market-friendly regulation, market competition has generally led consumer prices to decline. However, marked dynamics did not ensure universal service (especially in rural areas), nor the continuous upgrade of the networks, with the migration to higher capacity NGAN – two requisites increasingly demanded by downstream market developments (e-Services, cloud computing, IoT). This entry reconstructs the main market, Government and (cohesion) policy failures occurring in the sector, and the responses so far experimented in the EU, in an international perspective. In particular, it illustrates its State aid control system and analyzes the current trade-off that the new industrial policy is posing to the policy-maker in a liberalized sector.

This is a preview of subscription content, log in to check access.

References

  1. Analysys Mason, Tech4i2 Ltd (2013) The socio-economic impact of bandwidth. Report for the European Commission, London. Available at: http://ec.europa.eu/digital-agenda/en/news/study-socio-economic-impact-bandwidth-smart-20100033
  2. Bacchiocchi E, Florio M, Gambaro M (2011) Telecom reforms in the EU: prices and consumers’ satisfaction. Telecommun Policy 35(4):382–396CrossRefGoogle Scholar
  3. Briglauer W, Frübing S, Vogelsang I (2014) The impact of alternative public policies on the deployment of new communications infrastructure – a survey. Rev Netw Econ 13(3):227–270CrossRefGoogle Scholar
  4. Cambini C, Jiang Y (2009) Broadband investment and regulation: a literature review. Telecommun Policy 33(10–11):559–574CrossRefGoogle Scholar
  5. Cave M (2014) The ladder of investment in Europe, in retrospect and prospect. Telecommun Policy 38(8–9):674–683CrossRefGoogle Scholar
  6. Chirico F, Gaál N (2014) A decade of State aid control in the field of broadband. Eur State Aid Law Q 1:28–38Google Scholar
  7. Colomb C, Santinha G (2014) European Union competition policy and the European territorial cohesion agenda: an impossible reconciliation? State aid rules and public service liberalization through the european spatial planning lens. Eur Plan Stud 22(3):459–480CrossRefGoogle Scholar
  8. Digital Agenda Scoreboard (2014). Available at: https://ec.europa.eu/digital-single-market/en/digital-scoreboard
  9. Distaso W, Lupi P, Manenti FM (2006) Platform competition and broadband uptake: theory and empirical evidence from the European Union. Inf Econ Policy 18(1):87–106CrossRefGoogle Scholar
  10. European Commission (EC) (2003) Cumbria broadband – project access – advancing communication for cumbria and enabling sustainable services, Case N282/2003 – United Kingdom, 10.12.2003, C(2003)4480fin, BrusselsGoogle Scholar
  11. European Commission (2008) A European economic recovery plan, communication from the Commission to the European Council, 26.11.2008, COM(2008)800 final, BrusselsGoogle Scholar
  12. European Commission (2009) Community guidelines for the application of State aid rules in relation to rapid deployment of broadband networks, Communication 2009/C 235/04, 30.9.2009, BrusselsGoogle Scholar
  13. European Commission (2010) A digital agenda for Europe, COM(2010)245, 19 May, BrusselsGoogle Scholar
  14. European Commission (2013) EU guidelines for the application of State aid rules in relation to the rapid deployment of broadband networks, Communication 2013/C 25/01, 26.1.2013, BrusselsGoogle Scholar
  15. European Commission (2014a) An investment plan for Europe, Communication from the Commission, COM/2014/0903 final, BrusselsGoogle Scholar
  16. European Commission (2014b) Prolongation of the National Broadband Plan Italy, Case SA.38025 (2014/NN) – Italy, 11.12.2014, C(2014) 9725 final, BrusselsGoogle Scholar
  17. European Union (2012) Consolidated version of the Treaty on the Functioning of the European Union, 2012/C 326/01, 26.10.2012, BrusselsGoogle Scholar
  18. European Union (2014) Directive 2014/61/EU of the European Parliament and of the Council of 15 May 2014 on measures to reduce the cost of deploying high-speed electronic communications networks, 23.5.2014, BrusselsGoogle Scholar
  19. Florio M (2004) The great divestiture. Evaluating the welfare impact of the British privatisations 1979–1997. The Mit Press, Cambridge, MAGoogle Scholar
  20. Galperin H, Mariscal J, Viecens FM (2013) One goal, different strategies: an analysis of national broadband plans in Latin America. Info 15(3):25–38CrossRefGoogle Scholar
  21. Gómez-Barroso J, Feijóo C (2012) Volition versus feasibility: state aid when aid is looked upon favourably: the broadband example. Eur J Law Econ 34(2):347–364CrossRefGoogle Scholar
  22. LaRose R, Bauer JM, DeMaagd K, Chew HE, Ma W, Jung Y (2014) Public broadband investment priorities in the United States: an analysis of the broadband technology opportunities program. Gov Inf Q 31(1):53–64CrossRefGoogle Scholar
  23. Matteucci N (2014) L’investimento nelle reti NGA a larga banda: la ‘questione settentrionale’ (The investment in NGA broadband networks: the ‘Northern question’). Econ Polit Ind J Ind Bus Econ 41(4):9–25Google Scholar
  24. Matteucci N (2016) Standards, IPR and digital TV convergence: theories and empirical evidence. In: Lugmayr A, Dal Zotto C (eds) Media convergence handbook, vol I, 1st edn. Springer, BerlinGoogle Scholar
  25. Newbery D M. (2004) Privatising network industries. Cesifo working paper n. 1132, FebGoogle Scholar
  26. Seri P, Bianchi A, Matteucci N (2014) Diffusion and usage of public e-Services in Europe: an assessment of country level indicators and drivers. Telecommun Policy 38(5–6):496–513CrossRefGoogle Scholar
  27. Schmidt VA, Thatcher M (eds) (2013) Resilient liberalism in Europe’s political economy. Cambridge University Press, CambridgeGoogle Scholar

Copyright information

© Springer Science+Business Media, LLC, part of Springer Nature 2019

Authors and Affiliations

  1. 1.Department of Economics and Social SciencesMarche Polytechnic UniversityAnconaItaly