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Broadband business by utilities infrastructure exploitation: A multistage competition model

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  • Angelou, Georgios N.
  • Economides, Anastasios A.

Abstract

A promising broadband business opportunity is the exploitation of the physical resources owned by municipalities and utility-based firms. In this study, the new broadband business opportunities owned by these authorities are analyzed through the development of a decision analysis model. The proposed model analyzes the broadband business into stages, integrates real options and game theory and provides business equilibrium in terms of the time of entry in the market, quantity offer and price definition. Finally, a real world case study is discussed showing how the model can be applied.

Suggested Citation

  • Angelou, Georgios N. & Economides, Anastasios A., 2013. "Broadband business by utilities infrastructure exploitation: A multistage competition model," Telecommunications Policy, Elsevier, vol. 37(1), pages 63-79.
    • Handle: RePEc:eee:telpol:v:37:y:2013:i:1:p:63-79
    DOI: 10.1016/j.telpol.2012.07.009
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    References listed on IDEAS

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    1. Troulos, Costas & Maglaris, Vasilis, 2011. "Factors determining municipal broadband strategies across Europe," Telecommunications Policy, Elsevier, vol. 35(9), pages 842-856.
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    5. Tahon, Mathieu & Lannoo, Bart & Ooteghem, Jan Van & Casier, Koen & Verbrugge, Sofie & Colle, Didier & Pickavet, Mario & Demeester, Piet, 2011. "Municipal support of wireless access network rollout: A game theoretic approach," Telecommunications Policy, Elsevier, vol. 35(9), pages 883-894.
    6. Grenadier, Steven R, 1996. "The Strategic Exercise of Options: Development Cascades and Overbuilding in Real Estate Markets," Journal of Finance, American Finance Association, vol. 51(5), pages 1653-1679, December.
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    Cited by:

    1. 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.
    2. 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).
    3. 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.

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