IDEAS home Printed from https://ideas.repec.org/a/eee/telpol/v45y2021i5s0308596120301701.html
   My bibliography  Save this article

Rolling out of fibre optic networks in intermediate versus urban areas: An exploratory spatial analysis in the Netherlands

Author

Listed:
  • Sahebali, M.W.W.
  • Sadowski, Bert M.
  • Nomaler, O.
  • Brennenraedts, R.

Abstract

Within the growing literature on broadband development, much research has focused on infrastructure competition and spatial effects driving investment incentives in broadband provision. However, less attention has been paid to the geographical factors explaining very high capacity fibre based network rollout. The purpose of this paper is to examine these geographical effects of rollout of these networks by utilizing basic data mining techniques in conjunction with exploratory spatial data analysis. In explaining the rollout of these networks, the paper derives from the literature a geographical model on broadband provision and examines it empirically by focusing on the spatial and temporal effects driving very high capacity fibre-based network development in the Netherlands. The paper confirms previous research on market uncertainty and the techno-economics of broadband development, but shows, in addition, that more specific factors related to local effects and demand uncertainty are vital in explaining the rollout of very high capacity fibre-based network.

Suggested Citation

  • Sahebali, M.W.W. & Sadowski, Bert M. & Nomaler, O. & Brennenraedts, R., 2021. "Rolling out of fibre optic networks in intermediate versus urban areas: An exploratory spatial analysis in the Netherlands," Telecommunications Policy, Elsevier, vol. 45(5).
    • Handle: RePEc:eee:telpol:v:45:y:2021:i:5:s0308596120301701
    DOI: 10.1016/j.telpol.2020.102080
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0308596120301701
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.telpol.2020.102080?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Briglauer, Wolfgang & Cambini, Carlo & Grajek, Michał, 2018. "Speeding up the internet: Regulation and investment in the European fiber optic infrastructure," International Journal of Industrial Organization, Elsevier, vol. 61(C), pages 613-652.
    2. 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.
    3. Faulhaber, Gerald R & Hogendorn, Christiaan, 2000. "The Market Structure of Broadband Telecommunications," Journal of Industrial Economics, Wiley Blackwell, vol. 48(3), pages 305-329, September.
    4. Cambini, Carlo & Jiang, Yanyan, 0. "Broadband investment and regulation: A literature review," Telecommunications Policy, Elsevier, vol. 33(10-11), pages 559-574, November.
    5. Marc Bourreau & Johan Hombert & Jerome Pouyet & Nicolas Schutz, 2011. "Upstream Competition between Vertically Integrated Firms," Journal of Industrial Economics, Wiley Blackwell, vol. 59(4), pages 677-713, December.
    6. Sadowski, Bert M., 2017. "Advanced users and the adoption of high speed broadband: Results of a living lab study in the Netherlands," Technological Forecasting and Social Change, Elsevier, vol. 115(C), pages 1-14.
    7. Matsushima, Noriaki & Mizuno, Keizo, 2018. "Strategic investments under competition for access provision," Telecommunications Policy, Elsevier, vol. 42(2), pages 127-144.
    8. Frias, Zoraida & Martínez, Jorge Pérez, 2019. "Rollout and regulation of Fibre-To-The-Premises networks. Insights from the Spanish case," Telecommunications Policy, Elsevier, vol. 43(3), pages 225-237.
    9. Elizabeth A. Mack & Tony H. Grubesic, 2014. "US broadband policy and the spatio-temporal evolution of broadband markets," Regional Science Policy & Practice, Wiley Blackwell, vol. 6(3), pages 291-308, August.
    10. Rendon Schneir, Juan & Ajibulu, Ade & Konstantinou, Konstantinos & Bradford, Julie & Zimmermann, Gerd & Droste, Heinz & Canto, Rafael, 2019. "A business case for 5G mobile broadband in a dense urban area," Telecommunications Policy, Elsevier, vol. 43(7), pages 1-1.
    11. Bert Sadowski, 2014. "Business ICT Adoption and Open Access: The Example of SMEs at Industrial Parks in the Netherlands," Working Papers 14-04, Eindhoven Center for Innovation Studies, revised Feb 2014.
    12. Gerald R. Faulhaber & Christiaan Hogendorn, 2000. "The Market Structure of Broadband Telecommunications," Journal of Industrial Economics, Wiley Blackwell, vol. 48(3), pages 305-329, September.
    13. Montenegro, Lourdes O. & Araral, Eduardo, 2020. "Can competition-enhancing regulation bridge the quality divide in Internet provision?," Telecommunications Policy, Elsevier, vol. 44(1).
    14. Grubesic, Tony H., 2008. "Spatial data constraints: Implications for measuring broadband," Telecommunications Policy, Elsevier, vol. 32(7), pages 490-502, August.
    15. Alizadeh, Tooran & Grubesic, Tony & Helderop, Edward, 2020. "Socio-spatial patterns of the national broadband network revealed: Lessons from greater Sydney, Melbourne, and Brisbane," Telecommunications Policy, Elsevier, vol. 44(5).
    16. Elizabeth A. Mack, 2014. "Broadband and knowledge intensive firm clusters: Essential link or auxiliary connection?," Papers in Regional Science, Wiley Blackwell, vol. 93(1), pages 3-29, March.
    17. Ordover, Janusz & Shaffer, Greg, 2007. "Wholesale access in multi-firm markets: When is it profitable to supply a competitor?," International Journal of Industrial Organization, Elsevier, vol. 25(5), pages 1026-1045, October.
    18. Bourreau, Marc & Cambini, Carlo & Hoernig, Steffen, 2015. "Geographic access markets and investments," Information Economics and Policy, Elsevier, vol. 31(C), pages 13-21.
    19. Falch, Morten & Henten, Anders, 2018. "Dimensions of broadband policies and developments," Telecommunications Policy, Elsevier, vol. 42(9), pages 715-725.
    20. Wolfgang Briglauer & Klaus Gugler, 2019. "Go for Gigabit? First Evidence on Economic Benefits of High‐speed Broadband Technologies in Europe," Journal of Common Market Studies, Wiley Blackwell, vol. 57(5), pages 1071-1090, September.
    21. Grubesic, Tony H., 2006. "A spatial taxonomy of broadband regions in the United States," Information Economics and Policy, Elsevier, vol. 18(4), pages 423-448, November.
    22. Davide Quaglione & Massimiliano Agovino & Claudio Di Berardino & Alessandro Sarra, 2018. "Exploring additional determinants of fixed broadband adoption: policy implications for narrowing the broadband demand gap," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 27(4), pages 307-327, May.
    23. Briglauer, Wolfgang & Stocker, Volker & Whalley, Jason, 2020. "Public policy targets in EU broadband markets: The role of technological neutrality," Telecommunications Policy, Elsevier, vol. 44(5).
    24. Brito, Duarte & Tselekounis, Markos, 2016. "Access regulation and the entrant's mode of entry under multi-product competition in telecoms," Information Economics and Policy, Elsevier, vol. 37(C), pages 20-33.
    25. Tooran Alizadeh, 2015. "Local Government Planning and High-Speed Broadband in Australia," Journal of Urban Technology, Taylor & Francis Journals, vol. 22(4), pages 23-43, October.
    26. Abrardi, Laura & Cambini, Carlo, 2019. "Ultra-fast broadband investment and adoption: A survey," Telecommunications Policy, Elsevier, vol. 43(3), pages 183-198.
    27. Sadowski, Bert M., 2017. "Consumer cooperatives as an alternative form of governance: The case of the broadband industry," Economic Systems, Elsevier, vol. 41(1), pages 86-97.
    28. Grubesic, Tony H., 2010. "Efficiency in broadband service provision: A spatial analysis," Telecommunications Policy, Elsevier, vol. 34(3), pages 117-131, April.
    29. Sadowski, Bert M. & Nucciarelli, Alberto & de Rooij, Marc, 0. "Providing incentives for private investment in municipal broadband networks: Evidence from the Netherlands," Telecommunications Policy, Elsevier, vol. 33(10-11), pages 582-595, November.
    30. Van der Wee, Marlies & Verbrugge, Sofie & Sadowski, Bert & Driesse, Menno & Pickavet, Mario, 2015. "Identifying and quantifying the indirect benefits of broadband networks for e-government and e-business: A bottom-up approach," Telecommunications Policy, Elsevier, vol. 39(3), pages 176-191.
    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. Saul Beltozar-Clemente & Orlando Iparraguirre-Villanueva & Félix Pucuhuayla-Revatta & Fernando Sierra-Liñan & Joselyn Zapata-Paulini & Michael Cabanillas-Carbonell, 2023. "Contributions of the 5G Network with Respect to Decent Work and Economic Growth (Sustainable Development Goal 8): A Systematic Review of the Literature," Sustainability, MDPI, vol. 15(22), pages 1-37, November.

    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. Matsushima, Noriaki & Mizuno, Keizo, 2018. "Strategic investments under competition for access provision," Telecommunications Policy, Elsevier, vol. 42(2), pages 127-144.
    2. Bourreau, Marc & Cambini, Carlo & Hoernig, Steffen, 2015. "Geographic access markets and investments," Information Economics and Policy, Elsevier, vol. 31(C), pages 13-21.
    3. Wolfgang Briglauer & Michał Grajek, 2021. "Effectiveness and efficiency of state aid for new broadband networks: Evidence from OECD member states," ESMT Research Working Papers ESMT-21-01, ESMT European School of Management and Technology.
    4. Sahebali, M. W. W. & Sadowski, Bert M. & Nomaler, O. & Brennenraedts, R., 2019. "Infrastructure Rollout and Fibre Provision: The case of NGN in the Netherlands," 30th European Regional ITS Conference, Helsinki 2019 205210, International Telecommunications Society (ITS).
    5. Marc Bourreau & Carlo Cambini & Steffen Hoernig & Ingo Vogelsang, 2020. "Fiber investment and access under uncertainty: long-term contracts, risk premia, and access options," Journal of Regulatory Economics, Springer, vol. 57(2), pages 105-117, April.
    6. David Henriques, 2021. "Access Prices Indexed to Geographical Coverage of Innovative Telecom Services," Journal of Industry, Competition and Trade, Springer, vol. 21(1), pages 123-138, March.
    7. Abrardi, Laura & Cambini, Carlo, 2019. "Ultra-fast broadband investment and adoption: A survey," Telecommunications Policy, Elsevier, vol. 43(3), pages 183-198.
    8. Briglauer, Wolfgang & Dürr, Niklas S. & Gugler, Klaus, 2019. "A retrospective study on the regional benefits and spillover effects of high-speed broadband networks: Evidence from German counties," ZEW Discussion Papers 19-026, ZEW - Leibniz Centre for European Economic Research.
    9. Briglauer, Wolfgang & Stocker, Volker, 2020. "Bedeutung digitaler Infrastrukturen und Dienste und Maßnahmen zur Förderung der Resilienz in Krisenzeiten," Policy Notes 42, EcoAustria – Institute for Economic Research.
    10. Vitor Miguel Ribeiro, 2018. "Dark fiber price regulation in the absence of facilities-based competition," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 45(2), pages 243-278, June.
    11. Briglauer, Wolfgang & Köppl-Turyna, Monika & Schwarzbauer, Wolfgang & Bittó, Virág, 2023. "Evaluating the effects of ICT core elements on CO2 emissions: Recent evidence from OECD countries," Telecommunications Policy, Elsevier, vol. 47(8).
    12. Keizo Mizuno & Ichiro Yoshino, 2015. "Overusing a bypass under cost-based access regulation: underinvestment with spillovers," Journal of Regulatory Economics, Springer, vol. 47(1), pages 29-57, February.
    13. Götz, Georg, 2013. "Competition, regulation, and broadband access to the internet," Telecommunications Policy, Elsevier, vol. 37(11), pages 1095-1109.
    14. Ioannou, Nikos & Logothetis, Vangelis & Petre, Konstantin & Tselekounis, Markos & Chipouras, Aris & Katsianis, Dimitris & Varoutas, Dimitris, 2021. "Network modeling approaches for calculating wholesale NGA prices: A full comparison based on the Greek fixed broadband market," Telecommunications Policy, Elsevier, vol. 45(9).
    15. Gerli, Paolo & Van der Wee, Marlies & Verbrugge, Sofie & Whalley, Jason, 2018. "The involvement of utilities in the development of broadband infrastructure: A comparison of EU case studies," Telecommunications Policy, Elsevier, vol. 42(9), pages 726-743.
    16. Dogan, Pinar & Bourreau, Marc & Manant, Matthieu, 2010. "A Critical Review of the “Ladder of Investment†Approach," Scholarly Articles 4777447, Harvard Kennedy School of Government.
    17. Briglauer, Wolfgang & Dürr, Niklas & Gugler, Klaus, 2021. "A retrospective study on the regional benefits and spillover effects of high-speed broadband networks: Evidence from German counties," International Journal of Industrial Organization, Elsevier, vol. 74(C).
    18. Hoernig, Steffen & Cambini, Carlo, 2012. "Geographic Access Rules and Investments," CEPR Discussion Papers 9013, C.E.P.R. Discussion Papers.
    19. Harald Gruber & Pantelis Koutroumpis, 2013. "Competition enhancing regulation and diffusion of innovation: the case of broadband networks," Journal of Regulatory Economics, Springer, vol. 43(2), pages 168-195, April.
    20. Quaglione, Davide & Matteucci, Nicola & Furia, Donatella & Marra, Alessandro & Pozzi, Cesare, 2020. "Are mobile and fixed broadband substitutes or complements? New empirical evidence from Italy and implications for the digital divide policies," Socio-Economic Planning Sciences, Elsevier, vol. 71(C).

    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:eee:telpol:v:45:y:2021:i:5:s0308596120301701. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/30471/description#description .

    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.