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Next Generation Networks: The Demand Side Issues

In: Telecommunication Markets

Author

Listed:
  • James Alleman

    (University of Colorado)

  • Paul Rappoport

    (University of Colorado)

Abstract

The demand for next generation networks (NGN) for communications has mostly focused on the trend in technology. Recognizing that communications is a derived demand, we look at the demand for telecommunications services and then overlay these forecasts on the existing information and communications technology (ICT) infrastructure. We focus on the consumers rather than the technologies. We note that what consumers demand is for communications: The communications may be fixed, mobile, interactive, or unidirectional. With the technology and the move to IP protocol, all of these features can be handled in a few devices and networks – maybe only one. We provide an assessment of the forecast of market trends, and their implications for the regulator. The relevant demand elasticities are nearly unitary. Each of these factors alone implies that the market structure will be monopolist or an oligopoly at best. But amplified in combination, The need for clear, certain regulation of this segment of the ICT sector is an absolute necessity. Demand elasticities must be understood and factored into the consideration of the policy alternatives.

Suggested Citation

  • James Alleman & Paul Rappoport, 2009. "Next Generation Networks: The Demand Side Issues," Contributions to Economics, in: Peter Curwen & Justus Haucap & Brigitte Preissl (ed.), Telecommunication Markets, pages 397-415, Springer.
    • Handle: RePEc:spr:conchp:978-3-7908-2082-9_22
    DOI: 10.1007/978-3-7908-2082-9_22
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    Cited by:

    1. Johannes M. Bauer & Gary Madden & Aaron Morey, 2014. "Effects of economic conditions and policy interventions on OECD broadband adoption," Applied Economics, Taylor & Francis Journals, vol. 46(12), pages 1361-1372, April.
    2. Potgieter, Petrus H., 2012. "High-definition content and file sharing networks," 19th ITS Biennial Conference, Bangkok 2012: Moving Forward with Future Technologies - Opening a Platform for All 72518, International Telecommunications Society (ITS).

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