Single Wholesale Network for 5G: Quantitative Assessment of Market Impact

Единый оператор инфраструктуры 5G: количественная оценка влияния на рынки

Svetlana Golovanova, Korneeva, Dina V. (Корнеева, Дина) (), Sidorova, Elena E. (Сидорова, Елена) () and Guzel Yusupova ()
Additional contact information
Korneeva, Dina V. (Корнеева, Дина): National Research University Higher School of Economics
Sidorova, Elena E. (Сидорова, Елена): National Research University Higher School of Economics

Ekonomicheskaya Politika / Economic Policy, 2019, vol. 4, 166-193

Abstract: This article is devoted to quantitative analysis of the costs and benefits of 5G network infrastructure creation using two alternative forms, namely a single wholesale network or competing mobile networks. Calculations based on the discounting principle allowed us to establish whether savings are possible in the single wholesale network model. The limit of investment savings due to the use of a single wholesale network is estimated at 160–220 billion rubles covering a five-year period, given 360–480 billion rubles of investments required by four mobile operators. This estimation is optimistic and based on the assumption that a single wholesale network creates infrastructure none the worse than each of the four competing mobile networks, the expenditures of infrastructure development being not higher than those of the active mobile networks. We show that an infrastructure sharing agreements between mobile operators on a voluntary basis makes it possible to achieve a comparable amount of savings of 148–197 billion rubles for a five-year period. Taking into account the estimates of additional costs in the single wholesale network model caused by delay in implementation, an increase of market power, and regulatory costs, we conclude that the model of single wholesale network is economically inefficient.

Keywords: competition; single wholesale network; telecommunications; 5G; investment. (search for similar items in EconPapers)
JEL-codes: L12 L96 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://repec.ranepa.ru/rnp/ecopol/ep1931.pdf

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:rnp:ecopol:ep1931

Access Statistics for this article

Ekonomicheskaya Politika / Economic Policy is currently edited by Vladimir Mau

More articles in Ekonomicheskaya Politika / Economic Policy from Russian Presidential Academy of National Economy and Public Administration Contact information at EDIRC.
Bibliographic data for series maintained by RANEPA maintainer ().