Next Generation Connectivity: A Review of Broadband Internet Transitions and Policy From Around the World

Fostering the development of a ubiquitously networked society, connected over high-capacity networks, is a widely shared goal among both developed and developing countries. High capacity networks are seen as strategic infrastructure, intended to contribute to high and sustainable economic growth and to core aspects of human development. In the pursuit of this goal, various countries have, over the past decade and a half, deployed different strategies, and enjoyed different results. At the Commission's request, this study reviews the current plans and practices pursued by other countries in the transition to the next generation of connectivity, as well as their past experience. By observing the experiences of a range of market-oriented democracies that pursued a similar goal over a similar time period, we hope to learn from the successes and failures of others about what practices and policies best promote that goal. By reviewing current plans or policy efforts, we hope to learn what others see as challenges in the next generation transition, and to learn about the range of possible solutions to these challenges

Critical Factors of High-Speed Broadband Investments in Rural Areas from Perspective of Operators

Nopeasta tietoliikenneyhteydestä on tullut elintärkeä palvelu jokapäiväiselle elämälle ja yritystoiminnalle. Nopeita laajakaistoja on kuitenkin vaikea saada kannattamaan haja-asutusalueilla. Tästä johtuen Suomen hallitus käynnisti "Laajakaista 2015" -hankkeen, jonka tarkoituksena on tukea julkisen tuen avulla nopean laajakaistan leviämistä haja-asutusalueille Suomessa. Julkinen tuki ei ole kuitenkaan saanut aikaan odotettua investointiaktiivisuutta kaikkien operaattorien keskuudessa. Tähän tilanteeseen liittyen tämä tutkimus selvittää nopea-laajakaistainvestointien kriittisiä tekijöitä operaattorien näkökulmasta. Tutkimuksen taustalla oli tavoite määrittää eri operaattorien ominaisuuksia haja-asutusalueiden laajakaistahankkeissa ja löytää välineitä ymmärtää ja parantaa "Laajakaista 2015" -hanketta. Tutkimus toteutettiin teemahaastattelumetodin ja tekno-ekonomisen arvioinnin avulla. Tutkimusta varten haastateltiin asiantuntijoita kahdeksalta suomalaiselta operaattorilta. Lisäksi muutamia muita asiantuntijoita kuultiin eri organisaatioista kuten Viestintävirastosta. Tutkimuksessa nousi esille kolme keskeistä kriittistä tekijää nopea-laajakaistainvestoinneissa. Ensimmäinen tekijä, yhteensopivuus kokonaisstrategian kanssa, korostuu haja-asutusalueiden investoinneissa, jotka usein vaativat joustavia kannattavuustavoitteita ja tuotteiden räätälöintiä. Toinen kriittinen tekijä on penetraatio, joka muodostaa tavallisesti merkittävimmät riskit haja-asutusalueiden laajakaistainvestoinneissa. Alhainen asukastiheys nostaa kustannuksia tilaajaa kohden, mikä puolestaan laskee penetraatiota. Lisäksi penetraatioriskin merkitystä usein lisää todellisen kysyntätiedon puuttuminen verkon suunnitteluvaiheessa. Kolmas kriittinen tekijä, paikallinen aktiivisuus, tuo esille alueen asukkaiden ja kuntien merkityksen haja-asutusalueiden laajakaistainvestointien kannattavuudessa. Paikallinen aktiivisuus on yleensä jopa edellytys investointien kannattavuudelle. Tulosten perusteella haja-asutusalueiden nopea-laajakaistainvestointeja voitaisiin tehokkaimmin kehittää vähentämällä penetraatioriskiä. Tämä voitaisiin käytännössä toteuttaa esimerkiksi siirtymällä enemmän kysyntäperusteiseen verkkorakenteeseen ennakoivien kysyntäkartoitusten ja aikaista liittymistä suosivan hinnoittelun avulla.A fast broadband connection has become a vital service for everyday life and entrepreneurship. However, the profitability of high-speed broadband investments is a significant problem in rural areas. For this reason, the Finnish government has launched the Broadband 2015 Project, which aims to assist the extension of fiber networks in the rural areas of Finland by providing a public subsidy. However, this subsidy has not encouraged activity among all operators. Based on this situation, this research probes the critical factors of high-speed broadband investments from the perspective of operators. The underlying aim of the research is to define generally the characteristics of different operators in the rural area broadband investments as well as find tools for understanding and improving the Broadband 2015 project. The research was performed using the theme interview method and techno-economic evaluation. Eight different Finnish operators were interviewed for the research. In addition, several experts were interviewed in the government and other organizations. This research found three main critical factors affecting high-speed broadband investments in rural areas. The first factor, co-ordination with overall strategy, is emphasized in the rural area investments, which usually require flexible profitability targets and product tailoring. The market penetration is the second critical factor which usually becomes the most significant risk in the rural area broadband investments. The penetration is often hampered by low population density, which also increases costs per subscriber. Moreover, the penetration risk is increased in a network planning phase because demand is hard to forecast based on generally used methods in rural areas. The last critical factor, local activity, stresses the importance of local inhabitants and municipalities who can significantly affect the profitability of rural area broadband investments. Their activity is usually needed to facilitate profitable rural area broadband investments. The results show that the high-speed broadband investments in rural areas could be improved by diminishing the penetration risk. This risk could be reduced, for example, by moving toward more demand based network structure using advanced demand surveys and by promoting the preferential pricing of early connections

Networking technology adoption : system dynamics modeling of fiber-to-the-home

Thesis (Ph. D.)--Massachusetts Institute of Technology, Engineering Systems Division, Technology, Management, and Policy Program, 2005.This electronic version was submitted by the student author. The certified thesis is available in the Institute Archives and Special Collections.Page 244 blank.Includes bibliographical references (p. 241-243).A system dynamics model is developed and run to study the adoption of fiber-to-the-home as a residential broadband technology. Communities that currently do not have broadband in the United States are modeled. This case is of particular interest to U.S. policymakers, but also relevant to other regions concerned with economic development in rural areas. The model is used to explore the effects of government policy on fiber-to-the-home deployment and on the telecommunications supply chain. The research finds that government policy relating to broadband deployment has been based on a weak understanding of the dynamics involved, resulting in trial and error policy making that has unintended consequences. The thesis shows that the current monitoring of broadband deployment by the Federal Communications Commission is inadequate to contribute to the formation of reasoned policy decisions. The model is used to explore the consequences that different regulatory scenarios have on fiber-to-the-home deployment. Among the policy choices considered are: resale of fiber-to-the-home lines to competitive providers; low cost government loans for commercial deployments; rapid deployment to all communities currently without service; and a ban on municipal deployments. The current Rural Utilities Service loan program is also included in the model and its effects are analyzed. The model is used to examine the consequences for the optoelectronics industry of different deployment scenarios. It shows that the interests of consumers, regulators, and even service providers are in conflict with the interests of the optoelectronics industry which provides a critical component necessary for the service.(cont.) Strategies to help mitigate that conflict and to promote the health of the components industry are explored. Deployment of fiber-to-the-home is costly, and cost recovery is difficult for both incumbent and competitive service providers, especially in rural and suburban regions that do not currently have service. The interests of policy makers, service providers, and component suppliers need to be aligned to implement effective policy that encourages the deployment of broadband to unserved regions. The Federal Communications Commission needs to rearchitect its monitoring of service providers and their activities to better understand the status of deployment and how its policies can help or hinder.by Andjelka Kelic.Ph.D

Next Generation Connectivity: A Review of Broadband Internet Transitions and Policy from Around the World

Fostering the development of a ubiquitously networked society, connected over high-capacity networks, is a widely shared goal among both developed and developing countries. High capacity networks are seen as strategic infrastructure, intended to contribute to high and sustainable economic growth and to core aspects of human development.

Modeling the regulatory intervention in the telecommunications market

This thesis discusses the role of sector-specific regulators in the rapidly changing telecommunications industry. In particular, it studies the access pricing policy which provides the optimal balance between static and dynamic efficiency that better reflects the changing regulatory goals in a highly variable economic and technological environment. Static efficiency concerns the maximization of social welfare by intensifying the competition for providing differentiated services (service-based competition), whereas dynamic efficiency concerns the maximization of social welfare by incentivizing investments in competitive infrastructures (facilities-based competition). It is thus obvious that the role of regulators is to facilitate the gradual transition from static to dynamic efficiency by influencing the investment and competition outcomes through the regulation of the access price. Therefore, there is an interplay between regulatory policy and technological development which leads to rapidly changing market structures and industry performance