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This paper describes the underlying policy and technological/market framework that created this situation of two competing local networks. We will explain why and how the present strong fixed infrastructure competition could develop by using an integrated multi-disciplinary approach. On the one hand technological developments have changed the market situation of two non-competing networks (POTS versus CATV, both servicing unique functions) into competing networks (by using technology innovation). Historical policy decisions created the basis for this (both networks were built before issues such as government subsidies/ownership and unauthorized state aid started to become relevant). However, combined with the European/national general policy choices to liberalize and privatise the telecommunications market (as formulated and put into place in the early nineties, strong incentives were created for market driven competition (instead of detailed regulatory intervention being the main driver). The paper shows that the impact of both technological/policy created market convergence and the creation of a 'triple play'-product have resulted in a disruptive situation where vacancy rates in both networks are increasing. We estimate that more than 40% of the local loops is no longer active.

The economic and societal impact of digital platforms raises a number of questions for policymakers, including whether existing regulatory approaches and instruments are sufficient to promote and safeguard public interests. This article develops a practical framework that provides structure and guidance to policymakers who design policies for the digital economy. The framework differs from other approaches in taking the digital business models of platforms as the starting point for the analysis. The framework consists of three pillars, namely determining a platform's characteristics, relating these to public interests, and formulating policy options. The framework then invokes a return‐path analysis for assessing how the interventions affect the business model, whether it has the desired effect on public interests, and ensuring it has no undesired side‐effects on public interests. The framework puts forward two key messages for current discussions on digital platforms. First, one should look at the underlying characteristics of platforms rather than trying to understand digital platforms as a single category. Second, policymakers should explore existing rules and policy options, as they seem fit to deal with several characteristics of digital platforms in a time frame that matches the rapid development of platform technologies and business models.