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Broadband unbundling in the U.S. would be bad...

Broadband unbundling in the U.S. would be bad decision because it could harm investment and productivity performance, said Martin Thelle, Copenhagen Economics managing director, in a Monday presentation of his white paper at the Information Technology & Innovation Foundation. Unbundling…

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in the European Union contributed to the investment gap in information and communication technologies, and 25 to 30 percent of labor growth productivity would disappear if the EU did not unbundle services on that continent, said Thelle. “Fixed broadband unbundling would not likely provide real benefits to the present-day US telecommunications markets, which are characterized by multiple-competing broadband infrastructures and country-wide players,” said Thelle in a paper he co-authored (http://bit.ly/11MJim0). Unbundled broadband would reduce prices, but it would also reduce incentives to invest and create broad, mobile and fiber networks, said Thelle.