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CBP (Competition-Based access Period)

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Competition-Based access Period (CBP) is a term used in the telecommunications industry to describe a period of time during which telecommunications service providers (TSPs) can compete for access to certain telecommunications infrastructure, such as a local loop or fiber optic network. The purpose of CBP is to promote competition in the telecommunications market by allowing multiple TSPs to offer services over the same infrastructure, thereby increasing consumer choice and potentially reducing prices.

In this article, we will provide a detailed explanation of CBP, including its history, purpose, and the different types of infrastructure that can be subject to CBP. We will also explore the advantages and disadvantages of CBP, and examine how CBP has been implemented in different countries around the world.

History of CBP:

CBP emerged as a regulatory concept in the 1990s, as telecommunications markets around the world began to undergo liberalization and privatization. Prior to this period, telecommunications infrastructure was typically owned and operated by national or state-owned monopoly providers, which offered a limited range of services at high prices. However, as telecommunications technologies advanced and new market entrants emerged, many governments began to open up their telecommunications markets to competition.

In this context, CBP was seen as a way to promote competition in the telecommunications market, by allowing multiple TSPs to access the same infrastructure. The idea was that by allowing multiple TSPs to offer services over the same infrastructure, competition would increase, and consumers would benefit from lower prices and improved service quality.

Types of Infrastructure Subject to CBP:

CBP can apply to a variety of different types of telecommunications infrastructure, depending on the specific regulatory context. Some of the most common types of infrastructure subject to CBP include:

  1. Local loops: A local loop is the physical connection between a customer's premises and the local exchange of a telecommunications network. Local loops can be subject to CBP in order to promote competition in the provision of broadband services.
  2. Fiber optic networks: Fiber optic networks are high-capacity telecommunications networks that use fiber optic cables to transmit data. Fiber optic networks can be subject to CBP in order to promote competition in the provision of high-speed broadband services.
  3. Mobile networks: Mobile networks are wireless telecommunications networks that provide mobile voice and data services to customers. Mobile networks can be subject to CBP in order to promote competition in the provision of mobile services.
  4. Cable networks: Cable networks are high-speed broadband networks that use coaxial cables to transmit data. Cable networks can be subject to CBP in order to promote competition in the provision of broadband services.

Advantages of CBP:

CBP has several advantages for consumers and TSPs. Some of the key advantages of CBP include:

  1. Increased competition: CBP promotes competition in the telecommunications market by allowing multiple TSPs to offer services over the same infrastructure. This increased competition can lead to lower prices and improved service quality for consumers.
  2. Improved innovation: CBP can encourage TSPs to innovate and develop new services and technologies in order to differentiate themselves from their competitors.
  3. Reduced barriers to entry: CBP can reduce barriers to entry for new market entrants, as it allows them to use existing infrastructure to offer services to customers. This can promote competition and innovation in the telecommunications market.
  4. Reduced infrastructure costs: CBP can reduce infrastructure costs for TSPs, as they can share the cost of infrastructure with other providers. This can lead to lower prices for consumers and increased efficiency in the provision of telecommunications services.

Disadvantages of CBP:

CBP also has several disadvantages, which can include:

  1. Reduced incentives for infrastructure investment: CBP can reduce the incentives for TSPs to invest in new infrastructure, as they may be able to use existing infrastructure to offer services to customers. This could lead to a lack of investment in new technologies and infrastructure, which could ultimately harm consumers.
  2. Coordination and cooperation issues: CBP can lead to coordination and cooperation issues between different TSPs, as they may need to work together to share infrastructure. This can be particularly challenging in cases where TSPs are competing with each other for customers.
  3. Quality of service issues: CBP can lead to quality of service issues, as multiple TSPs may be sharing the same infrastructure. This could lead to congestion and reduced service quality for customers.
  4. Regulatory complexity: CBP can be complex to regulate, as it requires detailed agreements between different TSPs and coordination from regulators. This can lead to increased regulatory costs and administrative complexity.

Implementation of CBP in different countries:

CBP has been implemented in different ways in different countries around the world. In some countries, CBP has been a key regulatory tool to promote competition in the telecommunications market, while in others it has played a more limited role.

In the European Union, for example, CBP has been a key tool for promoting competition in the telecommunications market. The EU has established a regulatory framework that requires national regulatory authorities to promote access to telecommunications infrastructure, including local loops and fiber optic networks. This has led to increased competition in the telecommunications market, with multiple TSPs offering services over the same infrastructure.

In the United States, CBP has also played a significant role in promoting competition in the telecommunications market. The Federal Communications Commission (FCC) has established regulations that require incumbent local exchange carriers to provide access to their local loops to competing TSPs. This has led to increased competition in the provision of broadband services, particularly in rural areas.

In Australia, CBP has been used to promote competition in the provision of mobile services. The Australian Competition and Consumer Commission (ACCC) has established regulations that require mobile network operators to provide access to their networks to competing TSPs. This has led to increased competition in the provision of mobile services, particularly in regional areas.

Conclusion:

Competition-Based access Period (CBP) is a regulatory tool that is used to promote competition in the telecommunications market by allowing multiple TSPs to access the same infrastructure. CBP can apply to a variety of different types of telecommunications infrastructure, including local loops, fiber optic networks, mobile networks, and cable networks. CBP has several advantages, including increased competition, improved innovation, reduced barriers to entry, and reduced infrastructure costs. However, CBP also has several disadvantages, including reduced incentives for infrastructure investment, coordination and cooperation issues, quality of service issues, and regulatory complexity. CBP has been implemented in different ways in different countries around the world, with varying levels of success. Overall, CBP remains an important regulatory tool for promoting competition in the telecommunications market, but its effectiveness depends on a range of factors, including the specific regulatory context, the type of infrastructure subject to CBP, and the level of competition in the market.