IDEAS home Printed from https://ideas.repec.org/a/idt/journl/cs8508.html
   My bibliography  Save this article

The Cost of Nationwide Fibre Access in Germany

Author

Listed:
  • Stephan JAY

    (WIK, Bad Honnef)

  • Karl-Heinz NEUMANN

    (WIK, Bad Honnef)

  • Thomas PLÜCKEBAUM

    (WIK, Bad Honnef)

Abstract

It is common knowledge that Next Generation Access (NGA) networks require significant investments and that for many regions, especially in more rural areas, there is no viable business case. In this paper a bottom-up cost modelling approach is applied to determine the investment and cost of deploying and operating a FTTH network in Germany on a national level. The monthly cost per subscriber at various levels of penetration is compared with the Average Revenue Per User (ARPU) to determine the penetration level or the required revenue for profitable operation in a steady market state. Those regions for which there is no business case are analysed with regard to the level of required subsidies. The modelling is based on differentiated geotypes reflecting urban and rural areas. The basic cost model used has been applied to numerous case studies before and was adapted to determine different forms of subsidies.The research questions addressed are (1) What is the area of profitable FTTH coverage in Germany? (2) What is the level of prices, internal subsidisation or investment subsidy necessary to increase the coverage of FTTH in Germany? These results inform policy makers and operators of the relevant investment deltas and/or price levels needed to increase the coverage of next generation broadband access infrastructure.

Suggested Citation

  • Stephan JAY & Karl-Heinz NEUMANN & Thomas PLÜCKEBAUM, 2012. "The Cost of Nationwide Fibre Access in Germany," Communications & Strategies, IDATE, Com&Strat dept., vol. 1(85), pages 169-188, 1st quart.
    • Handle: RePEc:idt:journl:cs8508
    as

    Download full text from publisher

    File URL: http://repec.idate.org/RePEc/idt/journl/CS8508/CS85_JAY_NEUMANN_PLUCKEBAUM.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Steffen HOERNIG & Stephan JAY & Werner NEU & Karl-Heinz NEUMANN & Thomas PLÜCKEBAUM & Ingo VOGELSANG, 2012. "Wholesale Pricing, NGA Take-Up and Competition," Communications & Strategies, IDATE, Com&Strat dept., vol. 1(86), pages 153-174, 2nd quart.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Plückebaum, Thomas & Ockenfels, Martin, 2020. "Kosten und andere Hemmnisse der Migration von Kupfer- auf Glasfasernetze," WIK Discussion Papers 457, WIK Wissenschaftliches Institut für Infrastruktur und Kommunikationsdienste GmbH.
    2. Fabian Queder, 2020. "Towards a vertically separated broadband infrastructure: The potential role of voluntary separation," Competition and Regulation in Network Industries, , vol. 21(2), pages 143-165, June.
    3. Queder, Fabian, 2020. "Competitive effects of cable networks on FTTx deployment in Europe," Telecommunications Policy, Elsevier, vol. 44(10).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Rajabiun, Reza & Middleton, Catherine, 2013. "Regulation, investment and efficiency in the transition to next generation networks: Evidence from the European Union," 24th European Regional ITS Conference, Florence 2013 88536, International Telecommunications Society (ITS).
    2. Balmera, Roberto E. & Ünverb, Mehmet Bilal, 2016. "Cooperative investment in next generation broadband networks: A review of recent practical cases and literature," 27th European Regional ITS Conference, Cambridge (UK) 2016 148657, International Telecommunications Society (ITS).
    3. Balmer, Roberto E., 2014. "Geographic regulation and cooperative investment in next generation broadband networks," 20th ITS Biennial Conference, Rio de Janeiro 2014: The Net and the Internet - Emerging Markets and Policies 106889, International Telecommunications Society (ITS).
    4. Balmera, Roberto E. & Ünverb, Mehmet Bilal, 2016. "Geographic regulation of next generation broadband networks: A review of practical cases and recent literature," 27th European Regional ITS Conference, Cambridge (UK) 2016 148656, International Telecommunications Society (ITS).
    5. Balmer, Roberto E., 2015. "Geographic regulation of next generation broadband networks: A review of practical cases and recent literature," 26th European Regional ITS Conference, Madrid 2015 127125, International Telecommunications Society (ITS).
    6. Neumann, Karl-Heinz & Vogelsang, Ingo, 2013. "How to price the unbundled local loop in the transition from copper to fiber access networks?," Telecommunications Policy, Elsevier, vol. 37(10), pages 893-909.
    7. Vogelsang Ingo, 2013. "The Endgame of Telecommunications Policy? A Survey," Review of Economics, De Gruyter, vol. 64(3), pages 193-270, December.
    8. Balmer, Roberto, 2013. "Geographic Regulation and Cooperative Investment in Next Generation Broadband Networks - A Review of Recent Literature and Practical Cases," MPRA Paper 54080, University Library of Munich, Germany.
    9. Neumann, Karl-Heinz & Schmitt, Stephan & Schwab, Rolf, 2016. "Die Bedeutung von TAL-Preisen für den Aufbau von NGA," WIK Discussion Papers 404, WIK Wissenschaftliches Institut für Infrastruktur und Kommunikationsdienste GmbH.
    10. Balmer, Roberto E., 2015. "Cooperative investment in next generation broadband networks: A review of recent practical cases and literature," 26th European Regional ITS Conference, Madrid 2015 127124, International Telecommunications Society (ITS).

    More about this item

    Keywords

    next generation access; FTTH; cost modelling; GPON; P2P; broadband strategy.;
    All these keywords.

    JEL classification:

    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L5 - Industrial Organization - - Regulation and Industrial Policy
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:idt:journl:cs8508. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: BLAVIER Thomas (email available below). General contact details of provider: https://edirc.repec.org/data/idatefr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.