Do NGAN Economics Allow for Network Competition?

Bruno Soria and Félix Hernández-Gil
Additional contact information
Bruno Soria: Telefónica
Félix Hernández-Gil: Telefónica

Communications & Strategies, 2010, vol. 1, issue 78, 23-44

Abstract: This article analyses whether the economics of Next Generation Access Networks for broadband services allow for the market to be competitive in Europe in absence of ex ante regulation of wholesale network access. This is done by two methods: cost modelling of operators with different technologies and market shares, and the review of market entry decisions by European operators. Both methods arrive to the same conclusions: a) network economics allow competition in most geographic areas between two to four operators; b) the economics of NGANs will lead to different industry structures in different geographic areas; c) even where there is not a pre-existing cable operator, other entrants can successfully deploy their networks and challenge the incumbent telecommunications operator; and d) price levels and availability of ducts greatly increase the degree of potential competition.

Keywords: regulation; competition; broadband; access networks; fibre optic. (search for similar items in EconPapers)
JEL-codes: K23 L50 L96 (search for similar items in EconPapers)
Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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