24th European Regional Conference of the International Telecommunication Society, Florence, Italy, 20-23 October 2013
This paper examines the influence of local loop unbundling (LLU) on incumbent telecommunications operators' investment in their respective telecommunications networks in OECD countries. In addition, the background of the influence is analyzed from both qualitatie and quantitative aspects. The study uses panel data (1995-2011) of capital expenditure(capex) and revenues to derive an investment function. The results indicate that LLU had a positive impact on investment by incumbent telecommunications operators in the United States, but a negative impact in Japan. These results echo those of previous empirical studies, which indicate that LLU can impact investment in various ways.