The paper provides an estimation of the global effects of the adoption of fibre optic systems in junction and trunk network on the costs of TLC European earners The aim of the work is twofold, firstly, to assess some typical features of the effects of fibre adoption on the services supply as a baseline for future econometric analyses of the Fibre-ln-The-Loop case, secondly, to set up an illustrative application of the econometric methodology in the TLC technical change analysis. The sample contains data from 16 European earners over the 1980-92 period The trunk optical systems are shown to have significantly reduced the costs of the European earners, especially of the ones operating non-rural and high density areas. In addition, fibre lines turn out to be more and more efficient as the fibre installed base enlarges.
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