26 July 2007

Broadband in France

I found this article in BusinessWeek interesting. While I will leave it to you to read the article in detail, the article attributes the increase in broadband access to local loop unbundling. The prices set by the French regulator encouraged entry, which was praised in the article; in comparison, the article points out that the unbundled prices in the US were set too high to encourage widespread entry. The article does not discuss whether the prices in France are compensatory, though it does imply that the prices in the US were predatory. Interestingly, the article criticizes the facilities-based competition bias of the US, while concluding the article with the desire on the part of a French CLEC to build its own facilities. Also, to some extent, the French experience is driven by EU policy.

Is facilities-based competition the desired outcome, in the end? Are the criticisms of the US approach to unbundled local loop warranted?

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