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Do NGAN Economics Allow for Network Competition?

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Author Info

  • Bruno SORIA

    (Telefónica)

  • Félix HERNÁNDEZ-GIL

    (Telefónica)

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    Abstract

    This article analyses whether the economics of Next Generation Access Networks for broadband services allow for the market to be competitive in Europe in absence of ex ante regulation of wholesale network access. This is done by two methods: cost modelling of operators with different technologies and market shares, and the review of market entry decisions by European operators. Both methods arrive to the same conclusions: a) network economics allow competition in most geographic areas between two to four operators; b) the economics of NGANs will lead to different industry structures in different geographic areas; c) even where there is not a pre-existing cable operator, other entrants can successfully deploy their networks and challenge the incumbent telecommunications operator; and d) price levels and availability of ducts greatly increase the degree of potential competition.

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    File URL: http://repec.idate.fr/RePEc/idt/journl/CS7802/CS78_SORIA_HERNANDEZ.pdf
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    Bibliographic Info

    Article provided by IDATE, Com&Strat dept. in its journal Communications & Strategies.

    Volume (Year): 1 (2010)
    Issue (Month): 78 (2nd quarter)
    Pages: 23-44

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    Handle: RePEc:idt:journl:cs7802

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    Related research

    Keywords: regulation; competition; broadband; access networks; fibre optic.;

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    1. Giovanni Battista AMENDOLA & Lorenzo Maria PUPILLO, 2008. "The Economics of Next Generation Access Networks and Regulatory Governance: Towards Geographic Patterns of Regulation," Communications & Strategies, IDATE, Com&Strat dept., vol. 1(69), pages 85-108, 1st quart.
    2. Amendola, Giovanni Battista & Pupillo, Lorenzo Maria, 2008. "The Economics of Next Generation Access Networks and Regulatory Governance: Towards Geographic Patterns of Regulation," MPRA Paper 8823, University Library of Munich, Germany.
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