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Do NGAN Economics Allow for Network Competition?

Author

Listed:
  • Bruno SORIA

    (Telefónica)

  • Félix HERNÁNDEZ-GIL

    (Telefónica)

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.

Suggested Citation

  • Bruno SORIA & Félix HERNÁNDEZ-GIL, 2010. "Do NGAN Economics Allow for Network Competition?," Communications & Strategies, IDATE, Com&Strat dept., vol. 1(78), pages 23-44, 2nd quart.
    • Handle: RePEc:idt:journl:cs7802
    as

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    File URL: http://repec.idate.org/RePEc/idt/journl/CS7802/CS78_SORIA_HERNANDEZ.pdf
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    References listed on IDEAS

    as
    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.
    3. Ingo Vogelsang, 1997. "Telecommunications Competition: The Last Ten Miles," Books, American Enterprise Institute, number 917773, September.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Gallardo, Fernando & Méndez, Mariano & Monjas, Manuel & Sánchez, Fernando, 2015. "Real Options on New Generation Access Networks based on FTTH. An approach to the Spanish Case," 26th European Regional ITS Conference, Madrid 2015 127143, International Telecommunications Society (ITS).
    2. Hrovatin, Nevenka & Švigelj, Matej, 2013. "The interplay of regulation and other drivers of NGN deployment: A real-world perspective," Telecommunications Policy, Elsevier, vol. 37(10), pages 836-848.
    3. Ruhle, Ernst-Olav & Brusic, Igor & Kittl, Jörg & Ehrler, Matthias, 2011. "Next Generation Access (NGA) supply side interventions—An international comparison," Telecommunications Policy, Elsevier, vol. 35(9), pages 794-803.

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    More about this item

    Keywords

    regulation; competition; broadband; access networks; fibre optic.;
    All these keywords.

    JEL classification:

    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
    • L50 - Industrial Organization - - Regulation and Industrial Policy - - - General
    • K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law

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