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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

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.

Suggested Citation

  • Fredebeul-Krein, Markus & Knoben, Werner, 2010. "Long term risk sharing contracts as an approach to establish public-private partnerships for investment into next generation access networks," Telecommunications Policy, Elsevier, vol. 34(9), pages 528-539, October.
  • Handle: RePEc:eee:telpol:v:34:y:2010:i:9:p:528-539
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    Cited by:

    1. Briglauer Wolfgang & Frübing Stefan & Vogelsang Ingo, 2014. "The Impact of Alternative Public Policies on the Deployment of New Communications Infrastructure – A Survey," Review of Network Economics, De Gruyter, vol. 13(3), pages 227-270, September.
    2. Nucciarelli, Alberto & Castaldo, Angelo & Conte, Elisabetta & Sadowski, Bert, 2013. "Unlocking the potential of Italian broadband: Case studies and policy lessons," Telecommunications Policy, Elsevier, vol. 37(10), pages 955-969.
    3. Ganuza, Juan José & Viecens, María Fernanda, 2011. "Deployment of high-speed broadband infrastructures during the economic crisis. The case of Xarxa Oberta," Telecommunications Policy, Elsevier, vol. 35(9), pages 857-870.
    4. Ragoobar, Tricia & Whalley, Jason & Harle, David, 2011. "Public and private intervention for next-generation access deployment: Possibilities for three European countries," Telecommunications Policy, Elsevier, vol. 35(9), pages 827-841.

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