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.

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