Municipal support of wireless access network rollout: A game theoretic approach

Authors:
Mathieu Tahon;Bart Lannoo;Jan Van Ooteghem;Koen Casier;Sofie Verbrugge;Didier Colle;Mario Pickavet;Piet Demeester
Affiliations:
Ghent University-IBBT, Gaston Crommenlaan 8, bus 201, B-9050 Gent, Belgium;Ghent University-IBBT, Gaston Crommenlaan 8, bus 201, B-9050 Gent, Belgium;Ghent University-IBBT, Gaston Crommenlaan 8, bus 201, B-9050 Gent, Belgium;Ghent University-IBBT, Gaston Crommenlaan 8, bus 201, B-9050 Gent, Belgium;Ghent University-IBBT, Gaston Crommenlaan 8, bus 201, B-9050 Gent, Belgium;Ghent University-IBBT, Gaston Crommenlaan 8, bus 201, B-9050 Gent, Belgium;Ghent University-IBBT, Gaston Crommenlaan 8, bus 201, B-9050 Gent, Belgium;Ghent University-IBBT, Gaston Crommenlaan 8, bus 201, B-9050 Gent, Belgium
Venue:
Telecommunications Policy
Year:
2011

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Abstract

Next generation access networks are expected to bring ubiquitous broadband access and have attracted interest of municipal governments. This paper investigates the support by municipal authorities for the rollout of such a city-wide wireless broadband access network. Different business cases for 3G and WiFi operators are developed and it is indicated how to model the specificities for commercial versus public players. Furthermore, a game theoretic approach is used to investigate the investment options of the municipal player. It is shown that a partnership between a commercial and public player is the most likely investment strategy. However, bringing more players into the competitive environment reduces the intention of the commercial partner to engage in the public-private partnership (PPP).