Anchor product regulation – a new regulatory tool
Abstract
Purpose
The purpose of this paper is to introduce a new regulatory tool which is intermediate between an ex ante price control and no price control.
Design/methodology/approach
The approach adopted utilises public sources and first-hand experience in relation to the development and implementation of anchor product regulation.
Findings
Anchor product regulation is found to be an effective alternative to price control, particularly in the context of copper-fibre transition in access networks. The approach is less demanding in terms of information than a price control to implement, and evidence from the UK suggests that anchor product regulation improved investment incentives.
Research limitations/implications
The degree of substitution between anchor products and other access products could be investigated where anchor product regulation has been implemented.
Practical implications
Anchor product regulation is a practical tool which regulators can apply.
Originality/value
Anchor product regulation is a new concept, and this paper for the first time sets out the motivation for anchor product regulation, its development and experience in terms of implementation.
Keywords
Acknowledgements
Acknowledgement: Sam Wood of Plum Consulting for research support in the preparation of this article.
Citation
Williamson, B. (2014), "Anchor product regulation – a new regulatory tool", info, Vol. 16 No. 5, pp. 32-45. https://doi.org/10.1108/info-03-2014-0016
Publisher
:Emerald Group Publishing Limited
Copyright © 2014, Emerald Group Publishing Limited