The purpose of this paper is to present issues regarding broadband access in the coming years with at least four different competing broadband access forms. It aims to present regulatory issues in relation to that. It also aims to describe the use of profitability analyses as the basis for price decisions both in regulatory policy and in business strategy considerations.
The paper provides a description of trends for demand and supply for broadband access and regulatory policy, and presentation of a methodology for profitability analyses.
The most probable outcome for the coming decade is that no one of the four different broadband access forms can obtain more than a maximum of 30‐40 per cent penetration, which has an impact of the size of obtainable benefits of economies of scale and scope. Profitability analyses are a necessary and useful tool to make price decisions both for the regulator and for the big companies in the sector.
The paper has not been presented elsewhere. In autumn 2011, however, it will be used in a Telecommunications Economics course at Copenhagen University.
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