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Long term risk sharing contracts as an approach to establish public-private partnerships for investment into next generation access networks

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  • Fredebeul-Krein, Markus
  • Knoben, Werner
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    Abstract

    This paper develops an investment/pricing model for the deployment of basic broadband networks which, along with other applications, is applicable to public-private partnership projects. In particular, a new investment model is suggested to be used for finance deployment over a longer term by enabling both private and public investors to participate in the roll-out of next generation access (NGA) infrastructure. This so-called "long-term risk sharing concept" has several notable benefits compared with the traditional regulatory approach. Above all, the model enables both private operators and public authorities to share the risk of investing in NGA infrastructure. Thus the model offers a way for public authorities to achieve a timely and countrywide roll-out of NGA networks, including in areas where NGA investment would otherwise not occur.

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    File URL: http://www.sciencedirect.com/science/article/pii/S0308596110000881
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    Bibliographic Info

    Article provided by Elsevier in its journal Telecommunications Policy.

    Volume (Year): 34 (2010)
    Issue (Month): 9 (October)
    Pages: 528-539

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    Handle: RePEc:eee:telpol:v:34:y:2010:i:9:p:528-539

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    Related research

    Keywords: Regulation Broadband Fibre network Next generation access Risk sharing Public-private partnership;

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