Investments in next generation access infrastructures under regulatory uncertainty

Tselekounis, Markos; Varoutas, Dimitris

doi:10.1016/j.telpol.2013.06.001

Cited by 14 publications

(3 citation statements)

References 17 publications

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“…In addition, the geographical features of an area also affect broadband access deployment costs and the possibilities for broadband deployment [20]. Broadband access demand and broadband deployment costs are both affected by the specific regulatory measures [21], described in more detail in [22]. Moreover, the level of competition among operators also affects the costs of broadband deployment [23] since the increase in the total number of operators competing in the same market usually reduces broadband implementation costs [24].…”

Section: Determinants Of Broadband Solutions Deploymentmentioning

confidence: 99%

A framework for optimal techno-economic assessment of broadband access solutions and digital inclusion of rural population in global information society

Križanović

Žagar

Grgić

2017

Univ Access Inf Soc

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Broadband solutions, i.e., broadband technologies and services, offer users numerous benefits. However, inequalities related to the levels of broadband solutions' deployment and adoption between rural and urban areas, i.e., the digital divide, remain a consequential problem worldwide. To reduce the digital divide, the issues related to the deployment and usage of broadband solutions in rural areas are analysed in this paper. To define optimal strategies for the deployment and adoption of rural broadband solutions, the application of an extended technoeconomic assessment process is considered. Therefore, an additional framework that extends the structure of standard techno-economic models is proposed, and its detailed overview is given. Within the framework, the regression analyses of factors relevant to broadband solutions deployment and adoption in rural areas are defined. The results of conducted analyses are used in the standard techno-economic modelling process. Finally, the efficiency of framework usage in techno-economic assessment process and in finding optimal broadband solutions is demonstrated for a case study rural scenario.

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Section: Determinants Of Broadband Solutions Deploymentmentioning

confidence: 99%

A framework for optimal techno-economic assessment of broadband access solutions and digital inclusion of rural population in global information society

Križanović

Žagar

Grgić

2017

Univ Access Inf Soc

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“…On the other hand, Tselekounis and Varoutas (2013) analyse the relationship between NGA investments and access prices under regulatory uncertainty, conversely showing that in a linear wholesale price setting, it is difficult for regulation to provide socially desirable incentives.…”

Section: The Ec Recommendation Encourages Nonlinear Wholesale Price Smentioning

confidence: 99%

Economic replicability tests for next-generation access networks

Jaunaux

Lebourges

2015

Telecommunications Policy

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a b s t r a c tThis paper discusses the relevant cost standard for the economic replicability test for NextGeneration Access (NGA) networks, described in the "Recommendation on consistent nondiscrimination obligations and costing methodologies" adopted by the European Commission. According to the Recommendation, in order to reconcile investment and competition, wholesale prices should have nonlinear characteristics and only partly vary by the number of accesses. It demonstrates that a cost standard for the economic replicability test, which implies fully fixed and variable cost recovery for the access seeker, including the total wholesale price, would be incompatible with the economics of NGA networks and that such a test would deter NGA investment. Therefore, the cost standard should include only the variable part of the wholesale price. However, this paper underlines that during a transition phase, until competitors have secured access to NGA infrastructure, a second temporary test called the "competition migration test" should be added to ensure incumbent NGA retail prices do not foreclose efficient copper-based entrants. The two proposed tests surpass the limits of the "ladder of investment" theory by including the "business migration effect" developed by Bourreau, Cambini, and Dogan (2012).

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“…On the other hand, Tselekounis and Varoutas (2013) analyse the relationship between NGA investments and access prices under regulatory uncertainty, a contrario showing that under a linear wholesale price setting, it is difficult for regulation to provide socially desirable incentives.…”

Section: The Ec Recommendation Encourages Nonlinear Wholesale Price Smentioning

confidence: 99%

Economic Replicability Tests for Next-Generation Access Networks

Jaunaux¹,

Lebourges²

2013

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EconStor may AbstractThis paper discusses the relevant cost standard for the economic replicability test for Next-Generation Access (NGA) networks, described in the Recommendation on Costing and Non-discrimination adopted by the European Commission. We demonstrate that a cost standard that implies fully fixed and variable cost recovery for the access seeker would be incompatible with the economics of NGA networks and that such a test would deter NGA investment. We show that to reconcile investment and competition, the wholesale price must be a two-part tariff and the economic replicability test should only be based on variable wholesale prices. We underline that during a transition phase, until competitors have secured access to NGA infrastructure, a temporary second test called the "competition migration test" should be added to ensure incumbent NGA retail prices do not foreclose copper-based efficient entrants. The tests we propose surpass the limits of the "ladder of investment" theory by including the "business migration effect" developed by Bourreau et al. (2012).

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Investments in next generation access infrastructures under regulatory uncertainty

Cited by 14 publications

References 17 publications

A framework for optimal techno-economic assessment of broadband access solutions and digital inclusion of rural population in global information society

A framework for optimal techno-economic assessment of broadband access solutions and digital inclusion of rural population in global information society

Economic replicability tests for next-generation access networks

Economic Replicability Tests for Next-Generation Access Networks

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