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same time Ofcom believes that this approach has <strong>to</strong> be correct <strong>in</strong> order <strong>to</strong> reflect <strong>the</strong> peculiarity ofNGA 85 .<strong>The</strong> NGA represents a new technology not completely developed and for this reason more sensible,<strong>in</strong> its future developments, <strong>to</strong> <strong>the</strong> regula<strong>to</strong>r <strong>in</strong>tervention. It is important that any <strong>in</strong>tervention <strong>in</strong> thisarea was accompanied by a deeply analysis of <strong>the</strong> potential effects, that means by a proper RIA.85 In his report Offcom states that NGA “may display a number of unique characteristics that mean <strong>the</strong> currentapproach <strong>to</strong> regulation is not appropriate. For example, his<strong>to</strong>rically, current generation local access network<strong>in</strong>vestments have faced low demand uncerta<strong>in</strong>ty and were considered a sunk cost for bottleneck asset owners – this maynot be <strong>the</strong> case for next generation access <strong>in</strong>vestments”. And moreover: “ It is not <strong>the</strong> role of Ofcom <strong>to</strong> provideopera<strong>to</strong>rs with <strong>in</strong>centives <strong>to</strong> make particular <strong>in</strong>vestments. Ra<strong>the</strong>r, we should endeavour <strong>to</strong> ensure that <strong>the</strong> <strong>in</strong>centives forefficient <strong>in</strong>vestment are not dis<strong>to</strong>rted, particularly as a result of disproportionate regulation. In determ<strong>in</strong><strong>in</strong>g <strong>the</strong> mostappropriate approach <strong>to</strong> regulation for <strong>in</strong>vestment <strong>in</strong> any risky bottleneck asset, and its implications on <strong>in</strong>centives, it isimportant <strong>to</strong> reflect adequately <strong>the</strong> level of risk <strong>in</strong>curred at <strong>the</strong> time of <strong>in</strong>vestment”.92

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