Regulatory Policy Note 6: Regulation, Risk and Investment Incentives

This Regulatory Policy Note describes the relationship between regulation, risk and investment incentives on the basis of the relevant economic theory. The regulation of access to fibre to the home (FttH) networks, as introduced by OPTA, is analysed against the background of this theoretical framework and compared with other types of regulation.

Regulatory Policy Notes are published by the Expertise Centre within OPTA. The Expertise Centre consists of the legal expert and the economic expert and is responsible for developing economic and legal reasoning and stimulating discussion on key issues within the electronic communications and postal markets. To achieve this, the Expertise Centre produces policy notes - short discussion papers. Economic Policy Notes focus on economic issues and principles. Regulatory Policy Notes focus on strategic economic issues in specific regulatory fields. Both types of document are intended to stimulate discussion and critical review within as well as outside of OPTA, thus laying a basis for the development of future policies. The analyses and conclusions expressed in Economic and Regulatory Policy Notes of the Expertise centre do not necessarily reflect the opinions of the commission of OPTA.