Does Government have a Role in Next-Generation Access?

Abstract

Governments and telcos around the world are pumping funds into stimulus packages to increase broadband penetration. However, past experience demonstrates that there are more effective ways in which governments can encourage next-generation access (NGA) network rollout than network ownership.

Table of Contents

• Executive summary
• In a nutshell
• Ovum view
• Key messages
• NGA networks are a certainty
• The business case for universal NGA deployment has not been made
• Natural monopolies don' t last for ever
• Governments can stimulate but not operate
• Different solutions in different markets
• The premise: access network investment will drive economic recovery
• Promoting broader access to broadband access
• Expectations for universal NGA
• Are access networks natural monopolies?
• Defining a natural monopoly
• Monopolistic characteristics of access networks
• How NGA differs from other access networks
• Should governments invest in broadband access?
• Expense: the hurdle to NGA rollout
• Government funding can stimulate a market
• Central government is not good at running infrastructure networks
• California enters the network business..... and reverses back out again
• Alternatives to government ownership of access networks
• Government-mandated monopolies and duopolies
• Grants, loans and subsidies
• Public - private partnerships
• Tax concessions
• Governments must give regulators the tools and freedom to do their job