THE IMPOSSIBILITY OF THE ‘LADDER OF INVESTMENT’ APPROACH TO REGULATION

Authors

  • Fernando Herrera-González,

    Corresponding author
    1. Madrid
      Fernando Herrera-González is an engineer in telecommunications and an economist in Madrid. He currently works for Telefónica as Special Expert (fherrerag69@yahoo.es).
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  • Luis Castejón-Martín

    Corresponding author
    1. Universidad Politécnica de Madrid
      Luis Castejón-Martín is Lecturer at Universidad Politécnica de Madrid and has extensive experience as a consultant for TIC issues (lcastejon@gtic.ssr.upm.es).
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Fernando Herrera-González is an engineer in telecommunications and an economist in Madrid. He currently works for Telefónica as Special Expert (fherrerag69@yahoo.es).

Luis Castejón-Martín is Lecturer at Universidad Politécnica de Madrid and has extensive experience as a consultant for TIC issues (lcastejon@gtic.ssr.upm.es).

Abstract

The ‘ladder of investment’ is a regulatory approach that has been used by EU National Regulatory Authorities (NRAs) to foster infrastructure competition among telco operators. In this paper, it is argued, using the method of the Austrian School of Economics, that the ladder of investment cannot possibly attain the expected results.

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