engleski

Cost and Market-Based Analysis for New Telecommunication Services

Public network operators (PNOs) have become increasingly interested in upgrading their access networks, mainly based on twisted pair based infrastructure, with broadband facilities in order to become more competitive with cable and new entrant operators. This is particularly important in the residential and small business areas. Critical strategic decisions are concerned with choices of network technologies and services, topologies, market segments and finally pricing policy. In this paper an economic viability of upgrading broadband access networks from the point of view of profitability for PTOs is considered. Since profitable range strongly depends on the level of market uncertainty, Delphi based forecasts are combined with forecasts obtained from the customer multi-attribute preference model and Bayes estimates are formed. The analysis is based on combination of both the cost or investment model and on market or customer preference model that makes it possible to determine profitable range regarding the penetration rate and service price.

access networks; investment costs; customers' preference model; Bayesian approach

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