Infrastructure competition and FTTP overbuild do not necessarily lead to lower retail broadband prices

There is a considerable amount of overlap between competing FTTP networks and between FTTP and cable networks in some markets. This leads to infrastructure-based competition, which has been the aim of policymakers in countries such as Spain and Portugal. Indeed, there have been limitations on the availability of regulated wholesale access to the incumbent’s FTTP network in these countries, as well as measures such as regulated duct and pole access, in order to incentivise FTTP network roll-outs by non-incumbents. One reason for such policies is to provide a form of competition that gives non-incumbent operators greater flexibility, which could potentially feed through to reduced retail broadband prices. However, all stakeholders need to understand what the actual impact of this policy framework has been on retail pricing. This article examines how the increase in FTTP overbuild in Spain and Portugal has affected retail prices.