Theoretical Survey

Abstract

This article surveys the theoretical foundations of interconnection policy. The requirement of an interconnection policy should not be taken for granted in all circumstances, even considering the issue of network externalities. On the other hand, when it is required, an encompassing interconnection policy is usually justified. We provide an overview of the theory on interconnection pricing that results in several different prescriptions depending on which problem the regulator aims to address. We also present a survey on the literature on two-way interconnection. Resumo