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A case study cost modelling of regulatory alternatives to mitigate the mobile network coverage and capacity problems in rural areas

Author

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  • Sundquist, Mårten
  • Markendahl, Jan

Abstract

Despite a continued build-out of mobile networks, both mobile network coverage and capacity problems in rural areas are increasing. This counterintuitive situation is due to the exponential growth in mobile data usage, the long inter-base station site distance in rural areas and the increasing requirements on ubiquitous coverage not only for humans but also for the Internet of Things. With today’s communication systems and business models, it is not commercially viable to solve the problems by the MNOs (Mobile Network Operators) alone. The paper aims instead of studying the different regulatory strategies available for NRAs (National Regulatory Agencies) to improve the situation. The main focus and contribution of the paper is to make a cost modelling of the main regulatory solutions available to improve the coverage and capacity in rural areas. An overall cost benchmark is then made, where the relative cost for network operators, affected end-users and the public sector is displayed.

Suggested Citation

  • Sundquist, Mårten & Markendahl, Jan, 2015. "A case study cost modelling of regulatory alternatives to mitigate the mobile network coverage and capacity problems in rural areas," 26th European Regional ITS Conference, Madrid 2015 127181, International Telecommunications Society (ITS).
    • Handle: RePEc:zbw:itse15:127181
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    File URL: https://www.econstor.eu/bitstream/10419/127181/1/Sundquist-Markendahl.pdf
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    References listed on IDEAS

    as
    1. Prieger, James E., 2013. "The broadband digital divide and the economic benefits of mobile broadband for rural areas," Telecommunications Policy, Elsevier, vol. 37(6), pages 483-502.
    2. Unknown, 2014. "Media Coverage 2014," 2014: Ethics, Efficiency and Food Security: Feeding the 9 Billion, Well, 26-28 August 2014 225573, Crawford Fund.
    3. Michał Grajek & Lars-Hendrik Röller, 2012. "Regulation and Investment in Network Industries: Evidence from European Telecoms," Journal of Law and Economics, University of Chicago Press, vol. 55(1), pages 189-216.
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    Cited by:

    1. 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.
    2. Köppelová, J. & Jindrová, A., 2017. "Comparative Study of Short-Term Time Series Models: Use of Mobile Telecommunication Services in CR Regions," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 9(1), March.

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