Broadband business by utilities infrastructure exploitation: A multistage competition model

Authors:
Georgios N. Angelou;Anastasios A. Economides
Affiliations:
University of Macedonia, Information Systems Department, Egnatia 156, Thessaloniki 54006, Greece;University of Macedonia, Information Systems Department, Egnatia 156, Thessaloniki 54006, Greece
Venue:
Telecommunications Policy
Year:
2013

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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.