Broadband access, regulatory issues and profitability analyses

Frederiksen, Jan Thorhauge

doi:10.1108/14636691111160617

Cited by 5 publications

(1 citation statement)

References 21 publications

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“…Broadband characteristics of being always-on, priced on a flat-rate basis and independent of distance-pricing, are changing the nature of traditional telecommunications services pricing. Broadband products are now mainly sold as packages to customers: the market is characterised by double, triple and quadruple play providing voice, data and video communication services, on both mobile and fixed connections (Frederiksen, 2011).…”

Section: Mobile or Fixed Broadband?mentioning

confidence: 99%

The future of broadband in Africa

Stork

Calandro

Gamage³

2014

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Purpose – This paper aims to provide an answer as to whether fibre to the home and other types of fixed internet access still have a role to play in Africa beyond a few urban elites, as well as what business models are likely to be successful in the African context. Design/methodology/approach – The paper uses data from nationally representative ICT household surveys conducted in 12 African countries in 2012. These data are complemented by an OECD broadband pricing methodology and data. In addition to the OECD basket methodology, own baskets were defined to capture the complexity of African products, and to draw out the different business models for fixed and mobile broadband. Findings – The paper demonstrates that if fixed internet is provided as an uncapped service at an affordable price, it has a chance to at least co-exist with mobile broadband in Africa. The availability of fixed internet is rapidly diminishing where it is offered as a capped service and not at prices similar to mobile broadband. The paper also demonstrates that fixed-line telecommunication companies should to focus on data only before mobile operators do, and they lose out once again. Practical implications – In Africa, mobile voice overtook fixed voice at the turn of the millennium with the introduction of prepaid services. Ten years later, mobile internet is rapidly overtaking fixed internet by overcoming key obstacles to fixed internet access. While the developed world discusses the merits of fixed and mobile broadband, it is clear that for Africa, fixed broadband in the form of fibre to the home, or even plain ADSL, will only reach a few urban elites in the next decade. Fixed-line operators then should rethink their pricing and investment strategies: they are advised to invest in high-speed technologies such as VDSL or fibre to the home, if fixed broadband is to stand a chance against mobile broadband. Whether fixed-line operators will lose the data battle as well will be determined by their business decisions as well as by policy and regulatory interventions. Originality/value – This paper uses primary household and individual data that allows for a better understanding of internet access and use in Africa. The analysis of internet access prices for ADSL against prepaid and post-paid mobile broadband is used to assess broadband business strategies across 12 African countries. The paper provides policymakers and regulators with the evidence required for an informed ICT policy and regulation and it recommends business strategies that should be pursued by operators to improve broadband sector performance.

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Section: Mobile or Fixed Broadband?mentioning

confidence: 99%

The future of broadband in Africa

Stork

Calandro

Gamage³

2014

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Broadband access strategies: financing and governance

Frederiksen

2014

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Purpose – The purpose of this paper was to present a number of issues regarding broadband access strategies in the coming years with at least four different competing broadband access forms. Pricing, investment and financing in relation to these issues are presented. The developments of interconnection and Internet governance are also presented. Design/methodology/approach – Description of trends for demand and supply for broadband access and the challenges for financing of the necessary investments. Findings – The most probable outcome for the coming decade is that a broadband access strategy is very dependent on where you believe the saturation level for the demand of bandwidth from normal residential household will be. Wireline and mobile wireless solutions will probably mainly be complements. Furthermore, there is a challenge for the whole telecommunication sector in relation to financing the necessary investments, because several factors are forcing the profit level in the sector downwards. The ongoing merger of two different interconnection regimes has an impact on the economy for network operators. Finally, the challenge of how to govern the Internet is emphasized. Originality/value – The paper provides a new structure for how to analyse the challenges for the telecom operators regarding choice of access strategy, financing of investments and governance.

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Metrics for Assessing Internet Business Models and Sustainability

Liebenau

Elaluf-Calderwood

2013

SSRN Journal

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Broadband access, regulatory issues and profitability analyses

Cited by 5 publications

References 21 publications

The future of broadband in Africa

The future of broadband in Africa

Broadband access strategies: financing and governance

Metrics for Assessing Internet Business Models and Sustainability

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