Infrastructure vs. Access Competition in NGNs

Abstract

With the introduction of NGNs, operators need to upgrade their access networks because in several cases, existing access networks can no longer meet increasing customer expectations. Evolving consumer expectations will require changes to the existing access network – next generation access. However, existing technologies faces some difficulties and are not ready for large-scale roll-out yet. For example, in the case of DSL technologies, the great majority of operators with copper networks are improving their networks, making investments to deploy fiber optics closer to customers and offering higher-speed access, which is required for new emerging services (reducing the distance between fiber and the users.). The entry of new competitors can be based on the resale of services from the incumbent, on building up their own infrastructures, on renting unbundled infrastructure from incumbents, or, on the combination of the above elements. Then, is important create the right incentive for operators to make an efficient build/buy choice and define the appropriate pricing principles.