Investment and regulation for broadband internet access in Germany and Switzerland

Schnellen Breitbandzugâangen fâur mâoglichst viele Haushalte wird eine große Bedeutung zugemeßen. Die dafâur notwendige Technik erfordert allerdings relativ hohe Investitionen. Die EU und mit ihr auch Deutschland sowie die Schweiz verfolgen unterschiedliche Regulierungsregime, wobei die Schweiz offensichtlich beßere Ergebniße erreicht. The transition from copper-based internet acceß to ultra-fast broadband networks requires large investments. However, regulation has a serious impact on (private) investment incentives. We describe and evaluate the regulatory frameworks of European countries, in particular those of Germany and Switzerland. Our article argues that the ex-ante sector-specifi c regulation in EU countries like Germany, with its focus on cost-oriented acceß and service-based competition, is likely to have a detrimental effect on investment. In contrast, the Swiß approach of ex-post regulation provides a more conducive investment environment. We provide prelimin Reprinted by permission of Springer