Migration to next generation access networks: a real option approach

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Modelling the impact of Next Generation Access (NGA) on voice termination cost

Termination of a telephone call can only be realized by the network operator of the receiving party. For this reason, the markets for fixed and mobile call termination are regulated ex-ante including price control. To determine the costs of call termination the current regulatory regime considers only those parts of the network where customers compete for jointly used resources (mainly bandwidth). Therefore, the critical border is the "demarcation point" between the end customer dedicated access network and the aggregation network where customers compete for bandwidth. In addition to the extent of the overall network cost to be considered (depending on the location of the demarcation point) the traffic share of the voice termination service (which determines how much of the relevant cost is borne by voice termination) compared to all the other services sharing the same NGN/ NGA network needs to be taken into account. We analyse the cost effects with a cost model, which considers the part of the access network from the MPoP to the demarcation point, where the dedicated (access) network begins, in detail. This allows us to compare the impact of different demarcation points and service scenarios on the level of voice termination rates for three NGA architectures (FTTH/P2P, FTTH/PON and FTTC). We considered double and triple play service packages and ran sensitivities on data usage. In addition, we calculated termination cost for three different demarcation point locations in the case of FTTH/PON. --Voice Termination,Next Generation Access,FTTH,price regulation,termination monopoly,cost modelling

Fault management and service provisioning process model of next generation access networks

Network operators are nowadays upgrading their access networks to cope with the increasing number of users and the increasing bandwidth required by services. However, cost plays a crucial factor. In order to decide which next generation access network will be implemented, an accurate cost evaluation should be performed. This evaluation requires a total cost of ownership model including a detailed model of the most costly operational processes: fault management and customer provisioning. These models help identifying the most costly sub-processes, where network providers should improve their cost efficiency. This paper presents detailed models for these operational processes and gives an approach to use them for estimating future operational costs

Critical market shares for investors and access seekers and competitive models in fibre networks

In this paper we consider and evaluate NGA architectures which meet the foreseeable future bandwidth demand and allow for highest bandwidth and quality for end-users and which no longer rely on copper cable elements. These are FTTH architectures only. From all available FTTH architectures we concentrate on the two most relevant architectures in Europe, Ethernet Point-to-Point and GPON. We assume the incumbent to be the investor in the NGA network infrastructure. If the NGA architecture is based on a Point-to-Point fibre plant we have modelled the competitors as using unbundled fibre loops as the wholesale access service. If the architecture is based on a Point-to-Multipoint fibre plant, we consider an active wholesale access (bitstream access) at the MPoP or at the core network node locations. Our basic modelling relies upon an engineering bottom-up cost modelling approach. We model the total cost of the services considered under efficient conditions, taking into account the cost of all network elements needed to produce these services in the specific architecture deployed. This approach is coherent with a Long Run Incremental Cost approach as applied in regulatory economics. Our modelling approach generates a broad set of results including the relative performance of the various network architectures, investment requirements and the degree of profitable coverage. In this paper, however, we focus on the results on the potential for competition and potential market structures in an NGA environment. --NGA architecture,cost modelling,FTTH,coverage,access models,unbundling

Ordinance on technical requirements and conditions of use of optical distribution networks of the Croatian regulatory agency - Analysis and outlook

In September 2010 the Croatian regulatory agency (HAKOM) put in force the ordinance on technical requirements and conditions of use of optical distribution networks. With this ordinance the Croatian regulatory agency is looking over the rim by proposing a rather technical approach for the rollout of optical access networks which will have significant influence on the deployment of next generation access networks (NGAN) in Croatia. The ordinance stipulates the requirements that have to be fulfilled in developing, planning, designing, building, using and maintaining optical access networks. Some of the main issues are the obligation of a point-to-point architecture, the focus on open access and the incorporation of municipalities in planning fibre distribution networks. In this way the agency is following a path which is unique in Europe and which is incorporating new players for building the optical network infrastructure. For Croatia an additional aspect is related to the expected accession to the European Union by mid 2013, putting the Government into the position of receiving financial support provided by the structural and cohesion fund of the EU in the amount of 7.6 billion Euros. --optical access networks,next generation access (NGA),regulatory framework,passive infrastructure,fibre to the home (FTTH)

Next-generation optical access seamless Evolution: concluding results of the European FP7 project OASE

Increasing bandwidth demand drives the need for next-generation optical access (NGOA) networks that can meet future end-user service requirements. This paper gives an overview of NGOA solutions, the enabling optical access network technologies, architecture principles, and related economics and business models. NGOA requirements (including peak and sustainable data rate, reach, cost, node consolidation, and open access) are proposed, and the different solutions are compared against such requirements in different scenarios (in terms of population density and system migration). Unsurprisingly, it is found that different solutions are best suited for different scenarios. The conclusions drawn from such findings allow us to formulate recommendations in terms of technology, strategy, and policy. The paper is based on the main results of the European FP7 OASE Integrated Project that ran between January 1, 2010 and February 28, 2013

Efficient contracts for government intervention in promoting next generation communications networks

Although the future socio-economic benefits of a new fibre-based (“next generation access”, NGA) telecommunications infrastructure seem to be uncontroversial, a universal NGA coverage appears to be a rather unrealistic objective without government intervention. We contend, however, that the current contract practice of fixing ex ante targets for network expansion is inefficient given the uncertainty about future returns on NGA infrastructure-based services and the public authorities’ incomplete information about the capital costs of the network provider. This paper puts forward to delegate the choice of the network expansion to the NGA provider