Infrastructure Sharing as an Opportunity to Promote Competition in Local Access Networks
Table 1
General assumptions summary.
Input assumption
Description
Analysis horizon
10 years
Operator type
Incumbent, CLEC (Competitive Local Exchange Carrier) and new entrants
Geographical profiles
Urban coverage and rural coverage. An urban area was chosen due to the high-density population and to the high data demand. A rural area was chosen due to its low-density population and its relatively low service demand compared with urban areas.
Technology scenarios
The cost model considers two different technological options for the provision of next-generation broadband services: FTTH(PON) and LTE. We assume that each region has only one CO.
CPE costs
Subscriber’s proportion on CPE costs: 100% for Fiber and 50% for LTE. This means that the network operator is assumed to subsidize the LTE CPEs in order to make the service offering competitive with Fiber offerings.
