Vertical Separation of Telecommunications Networks: Evidence from Five Countries

The widespread adoption of mandatory unbundling in telecommunications markets has led to growing interest in mandatory functional separation, i.e., separation of upstream network operations from downstream retail operations. Since 2002, vertical separation has been implemented in five OECD countries: Australia, Italy, New Zealand, Sweden, and the United Kingdom. In 2008, the International Telecommunications Union noted a tremendous amount of interest in functional separation around the world; and, in April 2009, the European Parliament held its second reading on a new regulatory framework that embraces functional separation as an exceptional measure. While the U.S. does not currently require unbundling of broadband telecommunications networks, at least one influential group is advocating both unbundling and vertical separation for U.S. network operators. In this context, this study examines mandatory vertical separation in telecommunications markets from both a theoretical and an empirical perspective. The theoretical case against vertical separation is very strong, predicting in particular that mandated separation will discourage innovation and investment in new technologies. The empirical evidence tends to confirm these predictions, suggesting that overall, vertical separation is likely to impose significant costs without measurably increasing broadband penetration

Vertical Separation of Telecommunications Networks: Evidence from Five Countries

The widespread adoption of mandatory unbundling in telecommunications markets has led to growing interest in mandatory functional separation, i.e., separation of upstream network operations from downstream retail operations. Since 2002, vertical separation has been implemented in five OECD countries: Australia, Italy, New Zealand, Sweden, and the United Kingdom. In 2008, the International Telecommunications Union noted a tremendous amount of interest in functional separation around the world; and, in April 2009, the European Parliament held its second reading on a new regulatory framework that embraces functional separation as an exceptional measure. While the U.S. does not currently require unbundling of broadband telecommunications networks, at least one influential group is advocating both unbundling and vertical separation for U.S. network operators. In this context, this study examines mandatory vertical separation in telecommunications markets from both a theoretical and an empirical perspective. The theoretical case against vertical separation is very strong, predicting in particular that mandated separation will discourage innovation and investment in new technologies. The empirical evidence tends to confirm these predictions, suggesting that overall, vertical separation is likely to impose significant costs without measurably increasing broadband penetration

The convergence of telecommunications and broadcasting in Japan

Thesis (M.B.A.)--Massachusetts Institute of Technology, Sloan School of Management, 2001.Includes bibliographical references (leaves 114-116).Japan has fallen far behind the United States in the extent and sophistication of its information networks and Internet use. But Japan can catch up. A combination of changes, including the rapid growth of the Internet, advances in broadband technology, the introduction of digital TV, and deregulation are driving a transformation referred to as the "convergence of telecommunications and broadcasting". At the same time, these drivers are dramatically changing the traditional industry structure of telecommunication and broadcasting, from vertical integration to horizontal stratification. Information companies need to plan strategies based on the new industry. NTT, reorganized in 1999 into a holding company system that promotes group management, has committed to an aggressive plan to deploy FTTH (Fiber to the home) everywhere in Japan by 2005. FTTH service has just begun and my research finds that NTT's decision to implement FTTH has encountered fierce competition when analyzed from the basis of Porter's Five Forces. There are fur strategic points that must be dealt with in order to win in the optical fiber service competition: 1) open access, 2) reduction in prices, 3) construction of a platform, and 4) correlation with broadcasters. In addition, cooperation with the regulatory authorities and other information companies is also required, because NTT will find it difficult to win on its own. NTT is a leader in the information/communication industry, and I believe NTT can expand its organizational capability and contribute to the development of the industry by responding to this new era.by Toru Maruoka.M.B.A

Development of high-performance quantum dot mode-locked optical frequency comb

This PhD thesis focus on the development of high-performance optical frequency combs (OFCs) generated by two-section passively mode-locked lasers (MLLs) based on novel optimised InAs quantum dot (QD) structures grown on GaAs substrates. Throughout the thesis, several important aspects are covered: the epitaxial structures, the device designs, the fabrication process, the characterisation of the fabricated laser devices and the evaluation of their performance. To gain a deep level comprehension of the mode-locking mechanisms in two-section QD MLLs, a detailed study is presented on a series of QD MLLs with different saturable absorber (SA) to gain section length ratios (from 1: 3 to 1: 7) in either ridged-waveguide structure or tapered waveguide structure. The effect of temperature on different device configurations is experimentally examined. And the data transmission capability of the QD MLLs is systematically investigated in different scenarios. In this thesis, an ultra-stable 25.5 GHz QD mode-locked OFC source emitted solely from the QD ground state from 20 °C to a world record 120 °C with only 0.07 GHz tone spacing variation has been demonstrated. Meanwhile, a passively QD MLL with 100 GHz fundamental repetition rate is developed for the first time, enabling 128 Gbit s−1 λ−1 PAM4 optical transmission and 64 Gbit s−1 λ−1 NRZ optical transmission through 5-km SSMF and 2-m free-space, respectively. All of the studies aim to prove that our two-section passively InAs QD MLLs can be used as simple, compact, easy-to-operate, and power-efficient multi-wavelength OFC sources for future high-speed and large-capacity optical communications

Quantum Cryptography

Quantum cryptography could well be the first application of quantum mechanics at the individual quanta level. The very fast progress in both theory and experiments over the recent years are reviewed, with emphasis on open questions and technological issues.Comment: 55 pages, 32 figures; to appear in Reviews of Modern Physic

A complex systems perspective on innovation, investment and regulation of evolving telecommunications networks

This thesis is a Doctoral Thesis of the International Executive Doctorate Programme (DBA) at the School of Management, Cranfield University, UK. The purpose of the study is to present the results of the research dedicated to the topic of Infrastructure Sharing, a common method to make use of the limited infrastructure resources of many stakeholders. The research aims to develop a decision support tool for a National Regulating Authority (NRA) on the basis of a software simulation representing infrastructure in use as complex systems consisting of agent and infrastructure networks. By applying a computational Agent-Based Modelling (ABM) approach to policy decisions, i.e. influence of Duct and Pole Access (DPA) to incumbent telecommunication infrastructures, the research investigates regulatory considerations that stimulate the development of alternative networks. The final deliverable of the research is a simulation tool that provides a solid foundation for simulating experiments, which allows analysis of demand for broadband services by different subgroups of users. The results of the study are of value for regulators, practitioners, representatives of telecommunication and other network industries, and scholars who deal with the topic of sustainable infrastructure development and recognise the value of a complex system perspective

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

Building China's high-tech telecom equipment industry : a study of strategies in technology acquisition for competitive advantage

Thesis (M.C.P.)--Massachusetts Institute of Technology, Dept. of Urban Studies and Planning; and, (S.M.)--Massachusetts Institute of Technology, Technology and Policy Program, 2001.Includes bibliographical references (p. 171-175).Over the past decade, China has witnessed a rapid growth in its information and communications technology (ICT) sector. The subject of this thesis specifically focuses on the telecommunications infrastructure equipment industry in China. This sector is an interesting one to study given that some of the leading domestic companies have mostly emphasized developing their own capabilities in product development, rather than calling upon formal technology transfers through foreign direct investment (FDI) initiatives. A significant challenge faced by local firms, however, is that foreign equipment manufacturers possessing deeper technological resources dominate their domestic market. Nevertheless, Chinese enterprises have recently begun producing high-end equipment such as core/backbone routers and DWDM optical transmission systems. The basic question this thesis seeks to answer, therefore, is how can Chinese companies become technologically competitive within the high-end segments of the telecom equipment market? A case study methodology was used to address this question, focusing on two leading domestic firms: Huawei Technologies, a privately owned company, and ZTE Corporation (Zhongxing), a state-owned enterprise. The findings show that four factors have contributed to the competitiveness of domestic firms. Firstly, they are able to successfully leverage the configurational nature of communications technology. Secondly, the substantial investment made by the case study firms to develop their own R&D capabilities has enabled them to become 'close followers' of the world technological frontier. Thirdly, the global trend towards a less vertically integrated equipment industry has produced a base of suppliers from which Chinese firms can procure world-class component and subsystem technologies. Lastly, the role of the Chinese government has been instrumental in building technological capabilities at the national level and expanding market demand. Reciprocal arrangements and performance requirements established between government and domestic firms have encouraged the latter to upgrade their technological capabilities. These combined observations provide a perspective on firm competitiveness in high tech industries that is somewhat different to the models proposed under 'second mover advantage' theory. Furthermore, the analyses made of technology acquisition at the level of the firm highlight the importance of independent development (where possible), compared to FDI, as a vehicle for technological development within late industrializing economies.by Aleyn Smith-Gillespie.S.M.M.C.P

From denationalisation to wholesale broadband access: a retrospective of regulatory policies in the UK for the communications industry

This paper examines the shifting regulatory policies in the United Kingdom (UK) across three market segments, telecommunications, radio/television and cable, starting with British Telecom’s (BT’s) denationalisation in 1984. For the period examined, this paper focuses on following key events: –The phased liberalisation of the UK communications industry starting with the BT-Mercury Communications duopoly in 1984 –The allocation of cable franchises as regional monopolies in the mid-1980s –Introduction of satellite broadcasting and the influence of British Sky Broadcasting (BSkyB) Corp. on broadcasting services in the 1990s –The emergence of the Internet/Web and the subsequent development of a broadband policy from mid-1990s onwards Drawing on Dodgson et al.’s concepts of Market logic, Coordination Logic, and Complex-Evolutionary Logic, the authors argue that the forms of regulation introduced shaped the ways the UK communications industry developed. Thus although the denationalisation grew out of a free market ideology, in practice the free market philosophy was tempered for a number of pragmatic reasons. Prominent among these was a need to create a competitive market in a context where competitors would be unlikely to emerge without regulatory intervention, and an emphasis on price competitiveness to ensure that the end-users benefitted from the best possible prices on available products and services. Subsequent events show that these interventions had unintended consequences. The unforeseen popular demand for Internet/Web access found regulators struggling to find ways to promote a competitive market, and incumbent operators struggling to find a way to offer a suitable product