ISSN: 1648 - 4460

International Journal of Scholarly Papers


Transformations  in
Business & Economics

Transformations in
Business & Economics

  • © Vilnius University, 2002-2013
  • © Brno University of Technology, 2002-2013
  • © University of Latvia, 2002-2013
Kuriame Lietuvos ateitį
Deployment of the Fibre Network in Slovenia: What Can Be Learnt?
Nevenka Hrovatin, Damir Cibic, Matej Svigelj

ABSTRACT. One of the recent key issues of broadband development is how to facilitate investments in the Next Generation Access Networks (NGA), in particular in fibre. This paper aims to contribute to this area by analysing Slovenia as a country with a high penetration rate of fibre-to-the-home (FTTH). The role of regulation in the light of the EU’s “ladder of investment” theory is investigated, along with the impact of NGA investments on price and service competition and consequently on the performance of operators. The main finding is that the regulatory failure (i.e. delays) in enforcing local loop unbundling (LLU) at entry stimulating prices de facto has in fact induced huge Greenfield investments in fibre by the alternative operator, and as a response by the incumbent as well. The stiff price competition in the absence of new service competition has put in danger the performance of the operators which are, given the regulatory uncertainty of the recently imposed NGA regulatory regime, reluctant to further invest in fibre.

KEYWORDS: telecommunications, Next Generation Access networks, regulation, ladder of investment, broadband digital divide, Slovenia.

JEL classification: L96, L51, P2.

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Scholarly papers Transformations in Business & Economics
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