Vodafone Group commissioned WIK-Consult to analyse the impact of different FTTH architectures and wholesale options on investment, costs and competition. Two cost models and one competition model were developed for this purpose. A steady state cost model allowed the analysis of investments, costs and profitability. This model also generated the cost functions that were used in the 4-stage game-theoretic competition model. The latter model allowed the analysis of equilibrium states in the market with regard to the number of market participants, prices, market shares, consumer and producer surplus as well as total welfare for different FTTH technologies and wholesale options. Furthermore, successive network expansion and customer acquisition were modelled in a dynamic cost analysis to investigate the influence of the temporal component on investments and costs. The study was conducted in collaboration with an external scientific team led by Prof. Ingo Vogelsang.
©
Photo Credit:
lassedesignen - stock.adobe.com
Architectures and competitive models of fibre networks
Architectures and competitive models of fibre networks
New fibre optic study prepared by WIK-Consult on behalf of the Vodafone Group
New fibre optic study prepared by WIK-Consult on behalf of the Vodafone Group
