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Municipal support of wireless access network rollout: A game theoretic approach

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  • Tahon, Mathieu
  • Lannoo, Bart
  • Ooteghem, Jan Van
  • Casier, Koen
  • Verbrugge, Sofie
  • Colle, Didier
  • Pickavet, Mario
  • Demeester, Piet

Abstract

Next generation access networks are expected to bring ubiquitous broadband access and have attracted interest of municipal governments. This paper investigates the support by municipal authorities for the rollout of such a city-wide wireless broadband access network. Different business cases for 3G and WiFi operators are developed and it is indicated how to model the specificities for commercial versus public players. Furthermore, a game theoretic approach is used to investigate the investment options of the municipal player. It is shown that a partnership between a commercial and public player is the most likely investment strategy. However, bringing more players into the competitive environment reduces the intention of the commercial partner to engage in the public–private partnership (PPP).

Suggested Citation

  • Tahon, Mathieu & Lannoo, Bart & Ooteghem, Jan Van & Casier, Koen & Verbrugge, Sofie & Colle, Didier & Pickavet, Mario & Demeester, Piet, 2011. "Municipal support of wireless access network rollout: A game theoretic approach," Telecommunications Policy, Elsevier, vol. 35(9), pages 883-894.
  • Handle: RePEc:eee:telpol:v:35:y:2011:i:9:p:883-894
    DOI: 10.1016/j.telpol.2011.06.007
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    References listed on IDEAS

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    1. Bert M. SADOWSKI & Mathijs VERHEIJEN & Alberto NUCCIARELLI, 2008. "From Experimentation to Citywide Rollout: Real Options for a Municipal WiMax Network in the Netherlands," Communications & Strategies, IDATE, Com&Strat dept., vol. 1(70), pages 101-126, 2nd quart.
    2. William F. Sharpe, 1963. "A Simplified Model for Portfolio Analysis," Management Science, INFORMS, vol. 9(2), pages 277-293, January.
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    Cited by:

    1. Kaiser, Tobias Werner & Verbrugge, Sofie & Van der Wee, Marlies & Colle, Didier, 2017. "An Overview of different Business Models for public Wi-Fi and their Implications on Indirect Revenue," 28th European Regional ITS Conference, Passau 2017 169470, International Telecommunications Society (ITS).
    2. Charalampopoulos, George & Katsianis, Dimitris & Varoutas, Dimitris, 2020. "Investigating the intertwining impact of wholesale access pricing and the commitment to net neutrality principle on European next-generation access networks private investment plans: An options-game a," Telecommunications Policy, Elsevier, vol. 44(3).
    3. Angelou, Georgios N. & Economides, Anastasios A., 2013. "Broadband business by utilities infrastructure exploitation: A multistage competition model," Telecommunications Policy, Elsevier, vol. 37(1), pages 63-79.

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