Forget incentives to incumbents and eliminate hurdles to all others!
In a speech yesterday, EU commissioner for information society Neelie Kroes announced some new proposals to boost investment in Next-Generation Networks. The plan in a nutshell stands in three bullet points:
- force a reduction in copper wholesale prices to diminish the profitability of copper vs. fiber
- reward copper to fiber switchover by granting higher copper wholesale prices to incumbents who do switchover
- inject €6.4bn of public funds
What the plan tries to do really is to reduce what the commission perceives as an excessive gap in short-term profitability between copper and fiber. Kroes seems to believe that this incentive will be enough for incumbents to make the jump and finally invest in their...