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Providing incentives for private investment in municipal broadband networks: Evidence from the Netherlands

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  • Sadowski, Bert M.
  • Nucciarelli, Alberto
  • de Rooij, Marc

Abstract

The paper examines the incentives provided by public-private partnerships (PPPs) to stimulate private market parties to participate in municipal fibre networks in the Netherlands. Although there has been a growing interest of Dutch municipalities in fibre technologies since the beginning of the 2000s, PPP models to implement these technologies developed rather slowly in response to changes in public policy, the legislative environment and experiences gained in early projects. In 2005, the viability of a cooperative PPP model called "Ons Net" Nuenen was tested in an experimental setting for the first time using government subsidies. In undertaking a techno-economic analysis of the PPP "Ons Net" in Nuenen, the paper examines its objectives, boundaries and viability. It shows that the experience of this PPP based on ubiquity, open fibre access and demand aggregation provided important incentives for companies to invest in (other) municipal fibre networks in the Netherlands. The paper concludes furthermore that mandating of open access will become a key task for (local) governments to foster competitive entry and to facilitate innovation in municipal fibre networks.

Suggested Citation

  • Sadowski, Bert M. & Nucciarelli, Alberto & de Rooij, Marc, 0. "Providing incentives for private investment in municipal broadband networks: Evidence from the Netherlands," Telecommunications Policy, Elsevier, vol. 33(10-11), pages 582-595, November.
    • Handle: RePEc:eee:telpol:v:33:y::i:10-11:p:582-595
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    Cited by:

    1. Howell, Bronwyn, 2012. "Competition and Regulation Policy in Antipodean Government-Funded UltraFast Fibre Broadband Markets," Working Paper Series 4133, Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation.
    2. Briglauer Wolfgang & Frübing Stefan & Vogelsang Ingo, 2014. "The Impact of Alternative Public Policies on the Deployment of New Communications Infrastructure – A Survey," Review of Network Economics, De Gruyter, vol. 13(3), pages 227-270, September.
    3. Bronwyn HOWELL & Arthur GRIMES, 2010. "Productivity Questions for Public Sector Fast Fibre Network Financiers," Communications & Strategies, IDATE, Com&Strat dept., vol. 1(78), pages 127-146, 2nd quart.
    4. Gerli, Paolo & Van der Wee, Marlies & Verbrugge, Sofie & Whalley, Jason, 2018. "The involvement of utilities in the development of broadband infrastructure: A comparison of EU case studies," Telecommunications Policy, Elsevier, vol. 42(9), pages 726-743.
    5. Bert Sadowski, 2014. "Consumer Cooperatives as a new Governance Form: The Case of the Cooperatives in the Broadband Industry," Working Papers 14-03, Eindhoven Center for Innovation Studies, revised Feb 2014.
    6. Bert Sadowski & Mathijs Verheijen & Alberto Nucciarelli, 2010. "Strategic Options for Mobile Broadband Services: The Case of a Municipal WiMAX Network in The Netherlands," Chapters, in: Morten Falch & Jan Markendahl (ed.), Promoting New Telecom Infrastructures, chapter 7, Edward Elgar Publishing.
    7. Nucciarelli, Alberto & Castaldo, Angelo & Conte, Elisabetta & Sadowski, Bert, 2013. "Unlocking the potential of Italian broadband: Case studies and policy lessons," Telecommunications Policy, Elsevier, vol. 37(10), pages 955-969.
    8. Sadowski, Bert M., 2017. "Consumer cooperatives as an alternative form of governance: The case of the broadband industry," Economic Systems, Elsevier, vol. 41(1), pages 86-97.
    9. Howell, Bronwyn & Sadowski, Bert, 2018. "Anatomy of a public-private partnership: Hold-up and regulatory commitment in Ultrafast Broadband," Telecommunications Policy, Elsevier, vol. 42(7), pages 552-565.
    10. Nucciarelli, Alberto & Sadowski, Bert M. & Achard, Paola O., 2010. "Emerging models of public-private interplay for European broadband access: Evidence from the Netherlands and Italy," Telecommunications Policy, Elsevier, vol. 34(9), pages 513-527, October.
    11. Acharya, Bikram & Lee, Jongsu & Moon, HyungBin, 2022. "Preference heterogeneity of local government for implementing ICT infrastructure and services through public-private partnership mechanism," Socio-Economic Planning Sciences, Elsevier, vol. 79(C).
    12. Troulos, Costas & Maglaris, Vasilis, 2011. "Factors determining municipal broadband strategies across Europe," Telecommunications Policy, Elsevier, vol. 35(9), pages 842-856.
    13. Howell, Bronwyn, 2012. "Competition and Regulation Policy in Antipodean Government-Funded UltraFast Fibre Broadband Markets," Working Paper Series 2787, Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation.
    14. Gerli, Paolo & Van der Wee, Marlies & Verbrugge, Sofie & Whalley, Jason, 2017. "The involvement of utilities in the development of broadband infrastructure: A comparison of EU case studies," 28th European Regional ITS Conference, Passau 2017 169461, International Telecommunications Society (ITS).
    15. Achard, Paola Olimpia & Di Berardino, Antonina, 2018. "Public Private Partnerships: Strategic Assets and Managerial Models," 29th European Regional ITS Conference, Trento 2018 184925, International Telecommunications Society (ITS).
    16. Tözer, Ayhan & Göktaylar, Yavuz, 2011. "Assessment of sectoral innovation systems approach: The case of Turkish internet service market," 22nd European Regional ITS Conference, Budapest 2011: Innovative ICT Applications - Emerging Regulatory, Economic and Policy Issues 52179, International Telecommunications Society (ITS).
    17. Grimes, Arthur & Townsend, Wilbur, 2018. "Effects of (ultra-fast) fibre broadband on student achievement," Information Economics and Policy, Elsevier, vol. 44(C), pages 8-15.
    18. Howell, Bronwyn & Sadowski, Bert, 2014. "Anatomy of a Public-Private Partnership: Hold-up and regulatory risk in an NGN PPP," 20th ITS Biennial Conference, Rio de Janeiro 2014: The Net and the Internet - Emerging Markets and Policies 106872, International Telecommunications Society (ITS).
    19. Howell, Bronwyn, 2011. "Competition and Regulation Policy in Antipodean Government-Funded Ultrafast Broadband Network Markets," Working Paper Series 4099, Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation.
    20. Annemijn van GORP & Catherine MIDDLETON, 2010. "Fiber to the Home Unbundling and Retail Competition: Developments in the Netherlands," Communications & Strategies, IDATE, Com&Strat dept., vol. 1(78), pages 87-106, 2nd quart.
    21. Gerli, Paolo & Wainwright, David & Whalley, Jason, 2017. "Infrastructure investment on the margins of the market: The role of niche infrastructure providers in the UK," Telecommunications Policy, Elsevier, vol. 41(9), pages 743-756.
    22. Bert SADOWSKI & Bronwyn HOWELL & Alberto NUCCIARELLI, 2013. "Structural Separation and the Role of Public-Private Partnerships in New Zealand's UFB Initiative," Communications & Strategies, IDATE, Com&Strat dept., vol. 1(91), pages 57-80, 3rd quart.
    23. Sadowski, Bert & Howell, Bronwyn, 2012. "Will they fly?: Different Forms of Public-Private Partnerships (PPPs) in New Zealand's UFB Initiative," Working Paper Series 4134, Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation.
    24. Sahebali, M.W.W. & Sadowski, Bert M. & Nomaler, O. & Brennenraedts, R., 2021. "Rolling out of fibre optic networks in intermediate versus urban areas: An exploratory spatial analysis in the Netherlands," Telecommunications Policy, Elsevier, vol. 45(5).

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