A vertically integrated incumbent and an OLO (Other Licensed Operator) compete in the market for broadband access. The incumbent has the option to invest in building a Next Generation Network that covers all urban areas with similar demand structures. The investment return in terms of demand...

In this paper we study how the migration from an old to a new technology is affected by the access price to the old technology, when it is set after investments have taken place. We show that both the incumbent and the regulator are willing to set a very high access price to accelerate...