IDEAS home Printed from https://ideas.repec.org/a/eee/telpol/v45y2021i7s0308596121000744.html
   My bibliography  Save this article

An assessment of estimation models and investment gaps for the deployment of high-speed broadband networks in NUTS3 regions to meet the objectives of the European Gigabit Society

Author

Listed:
  • Ferrandis, Jesús
  • Ramos, Sergio
  • Feijóo, Claudio

Abstract

This paper analyses the deployment of high-speed broadband networks in the European Union (EU). Its aim is to assess the investment required to meet the targets set by the European Commission (EC) for 2025, within the framework of the European Gigabit Society (EGS). This plan aims to ensure the availability and take-up of very high-capacity fixed and wireless networks, in both urban and rural areas, among households and the main socio-economic drivers. The estimation model presented here uses a methodology supported by data at the local (NUTS3) level to give a bottom-up estimation of the investment gap for each of the EGS objectives, using three different scenarios depending on the mix of wired and wireless technologies offered. The methodology and estimation model used in the paper are examined against other examples and assumptions available in the literature. We also offer a dynamic perspective on the analysis of the evolution of this investment gap over the years 2017–2019, which includes an assessment of the usefulness of these estimation models. The paper concludes by identifying the need for new measures to attract investment from public and private sources, mostly in rural areas, since purely market-driven initiatives fall short by about two-thirds of the required total investment. We also highlight how estimation models, despite their apparent complexity and number of assumptions, have a proven capacity to provide sufficiently accurate figures to guide policy action at the local, regional, national and supra-national levels. The usefulness of these estimation models could be enhanced by the availability of homogeneous and stable information on socio-demographics and on the level of coverage and take-up of broadband networks, at least at NUTS3 level.

Suggested Citation

  • Ferrandis, Jesús & Ramos, Sergio & Feijóo, Claudio, 2021. "An assessment of estimation models and investment gaps for the deployment of high-speed broadband networks in NUTS3 regions to meet the objectives of the European Gigabit Society," Telecommunications Policy, Elsevier, vol. 45(7).
  • Handle: RePEc:eee:telpol:v:45:y:2021:i:7:s0308596121000744
    DOI: 10.1016/j.telpol.2021.102170
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0308596121000744
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.telpol.2021.102170?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. Wolfgang Briglauer, 2014. "The impact of regulation and competition on the adoption of fiber-based broadband services: recent evidence from the European union member states," Journal of Regulatory Economics, Springer, vol. 46(1), pages 51-79, August.
    2. 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).
    3. Gómez-Barroso, José Luis & Feijóo, Claudio, 2010. "A conceptual framework for public-private interplay in the telecommunications sector," Telecommunications Policy, Elsevier, vol. 34(9), pages 487-495, October.
    4. 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.
    5. James Enck & Taylor Reynolds, 2009. "Network Developments in Support of Innovation and User Needs," OECD Digital Economy Papers 164, OECD Publishing.
    6. Given, Jock, 2010. "Take your partners: Public private interplay in Australian and New Zealand plans for next generation broadband," Telecommunications Policy, Elsevier, vol. 34(9), pages 540-549, October.
    7. Rendon Schneir, Juan & Xiong, Yupeng, 2016. "A cost study of fixed broadband access networks for rural areas," Telecommunications Policy, Elsevier, vol. 40(8), pages 755-773.
    8. Feijóo, Claudio & Ramos, Sergio & Armuña, Cristina & Arenal, Alberto & Gómez-Barroso, José-Luis, 2018. "A study on the deployment of high-speed broadband networks in NUTS3 regions within the framework of digital agenda for Europe," Telecommunications Policy, Elsevier, vol. 42(9), pages 682-699.
    9. Cambini, Carlo & Jiang, Yanyan, 0. "Broadband investment and regulation: A literature review," Telecommunications Policy, Elsevier, vol. 33(10-11), pages 559-574, November.
    10. 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).
    11. Abrardi, Laura & Cambini, Carlo, 2019. "Ultra-fast broadband investment and adoption: A survey," Telecommunications Policy, Elsevier, vol. 43(3), pages 183-198.
    12. Ovando, Catalina & Pérez, Jorge & Moral, Antolín, 2015. "LTE techno-economic assessment: The case of rural areas in Spain," Telecommunications Policy, Elsevier, vol. 39(3), pages 269-283.
    13. Salemink, Koen & Strijker, Dirk, 2018. "The participation society and its inability to correct the failure of market players to deliver adequate service levels in rural areas," Telecommunications Policy, Elsevier, vol. 42(9), pages 757-765.
    14. 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.
    15. Logothetis, Vangelis & Ioannou, Nikos & Tselekounis, Markos & Katsianis, Dimitris & Chipouras, Aris & Varoutas, Dimitris, 2019. "Ex post regulation of NGA networks: A roadmap for calculating the cost of an efficient operator – The case of Greece," 30th European Regional ITS Conference, Helsinki 2019 205195, International Telecommunications Society (ITS).
    16. Lebourges, Marc & Liang, Julienne, 2018. "Estimating the impact of co-investment in fiber to the home coverage," 29th European Regional ITS Conference, Trento 2018 184953, International Telecommunications Society (ITS).
    17. Han, Sang-wook & Sung, Ki Won & Zander, Jens, 2013. "An economic cost model for network deployment and spectrum in wireless networks," 24th European Regional ITS Conference, Florence 2013 88512, International Telecommunications Society (ITS).
    18. Tselekounis, Markos & Maniadakis, Dimitris & Varoutas, Dimitris, 2012. "NGA investments: A departure from the existing cost and demand structure assumptions," 19th ITS Biennial Conference, Bangkok 2012: Moving Forward with Future Technologies - Opening a Platform for All 72490, International Telecommunications Society (ITS).
    19. Hong, Jae-pyo, 2017. "Causal relationship between ICT R&D investment and economic growth in Korea," Technological Forecasting and Social Change, Elsevier, vol. 116(C), pages 70-75.
    20. Chiha, Asma & Van der Wee, Marlies & Colle, Didier & Verbrugge, Sofie, 2020. "Techno-economic viability of integrating satellite communication in 4G networks to bridge the broadband digital divide," Telecommunications Policy, Elsevier, vol. 44(3).
    21. Queder, Fabian, 2020. "Competitive effects of cable networks on FTTx deployment in Europe," Telecommunications Policy, Elsevier, vol. 44(10).
    22. Ioannou, Nikos & Katsianis, Dimitris & Varoutas, Dimitris, 2020. "Comparative techno-economic evaluation of LTE fixed wireless access, FTTdp G.fast and FTTC VDSL network deployment for providing 30 Mbps broadband services in rural areas," Telecommunications Policy, Elsevier, vol. 44(3).
    23. 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).
    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. Barbara Wieliczko & Agnieszka Kurdyś-Kujawska & Zbigniew Floriańczyk, 2021. "EU Rural Policy’s Capacity to Facilitate a Just Sustainability Transition of the Rural Areas," Energies, MDPI, vol. 14(16), pages 1-23, August.
    2. de Clercq, Michaël & D'Haese, Marijke & Buysse, Jeroen, 2023. "Economic growth and broadband access: The European urban-rural digital divide," Telecommunications Policy, Elsevier, vol. 47(6).

    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. Lee, Hyeongjik & Jeong, Seonkoo & Lee, Kwanghee, 2023. "The South Korean case of deploying rural broadband via fiber networks by implementing universal service obligation and public-private partnership based project," Telecommunications Policy, Elsevier, vol. 47(3).
    2. Feijóo, Claudio & Ramos, Sergio & Armuña, Cristina & Arenal, Alberto & Gómez-Barroso, José-Luis, 2018. "A study on the deployment of high-speed broadband networks in NUTS3 regions within the framework of digital agenda for Europe," Telecommunications Policy, Elsevier, vol. 42(9), pages 682-699.
    3. Chiha, Asma & Van der Wee, Marlies & Colle, Didier & Verbrugge, Sofie, 2020. "Techno-economic viability of integrating satellite communication in 4G networks to bridge the broadband digital divide," Telecommunications Policy, Elsevier, vol. 44(3).
    4. Briglauer, Wolfgang & Holzleitner, Christian, 2014. "Efficient contracts for government intervention in promoting next generation communications networks," ZEW Discussion Papers 14-022, ZEW - Leibniz Centre for European Economic Research.
    5. Briglauer, Wolfgang & Gugler, Klaus, 2013. "The deployment and penetration of high-speed fiber networks and services: Why are EU member states lagging behind?," Telecommunications Policy, Elsevier, vol. 37(10), pages 819-835.
    6. Ferrandis, Jesús & Feijóo, Claudio & Ramos, Sergio, 2020. "The investment gap for the deployment of high-speed broadband in NUTS3 regions," ITS Conference, Online Event 2020 224854, International Telecommunications Society (ITS).
    7. 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.
    8. 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.
    9. 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.
    10. Ioannou, Nikos & Katsianis, Dimitris & Varoutas, Dimitris, 2020. "Comparative techno-economic evaluation of LTE fixed wireless access, FTTdp G.fast and FTTC VDSL network deployment for providing 30 Mbps broadband services in rural areas," Telecommunications Policy, Elsevier, vol. 44(3).
    11. 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).
    12. 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).
    13. Vogelsang Ingo, 2013. "The Endgame of Telecommunications Policy? A Survey," Review of Economics, De Gruyter, vol. 64(3), pages 193-270, December.
    14. Gerli, Paolo & Whalley, Jason, 2021. "Fibre to the countryside: A comparison of public and community initiatives tackling the rural digital divide in the UK," Telecommunications Policy, Elsevier, vol. 45(10).
    15. Juan Jung, 2019. "Mandated sharing and telecom investment in Latin America and the Caribbean," Journal of Regulatory Economics, Springer, vol. 56(1), pages 85-103, August.
    16. Gerli, Paolo & Whalley, Jason, 2018. "Fibre to the countryside: A comparison of public and community initiatives in the UK," 29th European Regional ITS Conference, Trento 2018 184941, International Telecommunications Society (ITS).
    17. Logothetis, Vangelis & Ioannou, Nikos & Tselekounis, Markos & Katsianis, Dimitris & Chipouras, Aris & Varoutas, Dimitris, 2019. "Ex post regulation of NGA networks: A roadmap for calculating the cost of an efficient operator – The case of Greece," 30th European Regional ITS Conference, Helsinki 2019 205195, International Telecommunications Society (ITS).
    18. Abrardi, Laura & Cambini, Carlo, 2019. "Ultra-fast broadband investment and adoption: A survey," Telecommunications Policy, Elsevier, vol. 43(3), pages 183-198.
    19. Gerli, Paolo & Wainwright, David & Whalley, Jason, 2017. "Infrastructure investment on the margins of the market: The role of niche infrastructure providers in the UK," Telecommunications Policy, Elsevier, vol. 41(9), pages 743-756.
    20. Briglauer, Wolfgang & Cambini, Carlo & Melani, Sauro, 2016. "How to Fill the Digital Gap? The (Limited) Role of Regulation," VfS Annual Conference 2016 (Augsburg): Demographic Change 145480, Verein für Socialpolitik / German Economic Association.

    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:7:s0308596121000744. 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.