Modeling the deployment of NGANs in a competitive market
Tutor / director / evaluatorCastillo Ferrer, Francisco Javier
Document typeMaster thesis
Rights accessOpen Access
Historically, wire line telephony access networks where thought to be a typical example to justify a "natural monopoly". Only if the state would guarantee keeping the business exclusive to a company holding a license, would it be possible to get an economical return after the huge investments needed to deploy such a network providing universal access. Today, telecommunications infrastructures competition is encouraged throughout Europe. Regulatory authorities, therefore, aim at encouraging deployment of Next Generation Access networks (NGAs) under a competitive market structure, where two or more access loops should be available to most of the customers. However, it is not evident that the economics of such deployments will sustain healthy long term businesses for several operators. The purpose of the current project is to develop a simple model to ascertain how many operators can make a profitable business in a market like Spain, given the current regulatory constraints (January 2009 CMT resolution on NGAs). This model will take into account a set of simple parameters (like the cost of access to infrastructures, ARPU, percentage of homes contracting the service, population density, etc.) to investigate the economical viability of two or more operators deploying NGAs in different areas of the country.