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What is Ladder of Investment Principle

Chapter 4
Handbook of Research on Telecommunications Planning and Management for Business
Regulatory principle with the objective of encouraging investment by both incumbents and new entrants and ultimately promoting network competition. It is based on the idea that investments by new entrants are gradual as their customer base increases, but until this happens several complementary services (provided by incumbents) are needed.
Published in Chapter:
Next Generation Access Networks and their Regulatory Implications
Ricardo Gonçalves (Universidade Católica Portuguesa (Porto), Portugal) and Álvaro Nascimento (Universidade Católica Portuguesa (Porto), Portugal)
Copyright: © 2009 |Pages: 17
DOI: 10.4018/978-1-60566-194-0.ch004
Abstract
The deployment of Next Generation Access networks (NGAs) is likely to have a significant impact on the telecommunications’ value chain and, consequently, on the necessary regulatory remedies. In particular, unlike existing telephone networks, NGAs present regulators with a dilemma, in so far as the possibility of regulatory intervention after network deployment (negatively) affects investment incentives for such a deployment. We review the current discussion surrounding NGAs and discuss some of the main regulatory challenges it presents.
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