International Journal of Management and Network Economics http://www.inderscience.com/browse/index.php?journalID=259&year=2011&vol=2&issue=2 Inderscience Publishers Ltd en-uk International Journal of Management and Network Economics 1754-2316 1754-2324 © 2011 Inderscience Publishers Ltd editor@inderscience.com https://www.inderscience.com/images/files/coverImgs/ijmne_scoverijmne.jpg http://www.inderscience.com/browse/index.php?journalID=259&year=2011&vol=2&issue=2 http://www.inderscience.com/link.php?id=43350 This paper analyses the marginal value of spectrum which includes engineering and strategic value. The analysis of the engineering value shows that operators that are able to obtain more spectrum than their competitors, and pursue network sharing and spectrum aggregation have a competitive advantage as they have the lowest production cost, highest margin and highest capacity when usage takes off. The analysis of the strategic value shows that the level of offered data rates is pivotal for operators' marketing of mobile broadband services and that network sharing in combination with spectrum aggregation has a positive impact on the strategic value. Altogether, the willingness to pay for spectrum in recent auctions has been lower than the estimated marginal value in this analysis. However, it is likely to increase when a broad range of smart mobile devices and mobile broadband are ubiquitously used as this will put unprecedented pressure on mobile networks increasing the demand for spectrum. Mobile broadband expansion calls for more spectrum or more base stations: analysis of the value of spectrum and the role of spectrum aggregation
Jan Markendahl; Bengt G. Mölleryd
International Journal of Management and Network Economics, Vol. 2, No. 2 (2011) pp. 115 - 134
This paper analyses the marginal value of spectrum which includes engineering and strategic value. The analysis of the engineering value shows that operators that are able to obtain more spectrum than their competitors, and pursue network sharing and spectrum aggregation have a competitive advantage as they have the lowest production cost, highest margin and highest capacity when usage takes off. The analysis of the strategic value shows that the level of offered data rates is pivotal for operators' marketing of mobile broadband services and that network sharing in combination with spectrum aggregation has a positive impact on the strategic value. Altogether, the willingness to pay for spectrum in recent auctions has been lower than the estimated marginal value in this analysis. However, it is likely to increase when a broad range of smart mobile devices and mobile broadband are ubiquitously used as this will put unprecedented pressure on mobile networks increasing the demand for spectrum.

]]> 10.1504/IJMNE.2011.043350 International Journal of Management and Network Economics, Vol. 2, No. 2 (2011) pp. 115 - 134 Jan Markendahl; Bengt G. Mölleryd Wireless@KTH, Royal Institute of Technology, Electrum 229, S-164 40, Kista, Sweden. ' Swedish Post and Telecom Agency (PTS), P.O. Box 5398, SE-102 49, Stockholm, Sweden mobile communications spectrum valuation network deployment network capacity network cost carrier aggregation band aggregation market position spectrum aggregation mobile devices mobile broadband mobile networks smart devices. 2011-10-25T23:20:50-05:00 2 2 115 134 2011-10-25T23:20:50-05:00 http://www.inderscience.com/link.php?id=43351 Telecommunications investment has been identified as having a strong potential to spur economic growth and create employment. Investments in telecommunications infrastructure could not only provide a short-term boost to the economy, but also lay the groundwork for long-term improved growth and employment perspectives. Indeed, research findings indicate telecom investment has an impact far beyond the scope of the industry itself, promoting growth in adjacent industries and creating new industries. This paper outlines the most important studies and their key findings. It covers ICT productivity studies, econometric studies analysing the relationship between broadband infrastructure and economic development, and 'forward looking' studies estimating the multiplier effects of telecom investments. Most evidence indicates a strong and robust positive relationship between telecom investment and both, economic growth and employment. These results confirm investments in digital infrastructure may significantly contribute to improve long-term growth prospects. Investment in telecommunications infrastructure, growth and employment recent research
Reinhard Wieck; Miguel Vidal
International Journal of Management and Network Economics, Vol. 2, No. 2 (2011) pp. 135 - 149
Telecommunications investment has been identified as having a strong potential to spur economic growth and create employment. Investments in telecommunications infrastructure could not only provide a short-term boost to the economy, but also lay the groundwork for long-term improved growth and employment perspectives. Indeed, research findings indicate telecom investment has an impact far beyond the scope of the industry itself, promoting growth in adjacent industries and creating new industries. This paper outlines the most important studies and their key findings. It covers ICT productivity studies, econometric studies analysing the relationship between broadband infrastructure and economic development, and 'forward looking' studies estimating the multiplier effects of telecom investments. Most evidence indicates a strong and robust positive relationship between telecom investment and both, economic growth and employment. These results confirm investments in digital infrastructure may significantly contribute to improve long-term growth prospects.

]]> 10.1504/IJMNE.2011.043351 International Journal of Management and Network Economics, Vol. 2, No. 2 (2011) pp. 135 - 149 Reinhard Wieck; Miguel Vidal Deutsche Telekom, Public and Regulatory Affairs, 1020, 19th Street, Suite 850, Washington, DC 20036, USA. ' Deutsche Telekom, Public and Regulatory Affairs, Friedrich-Ebert-Allee 140, Bonn 53113, Germany telecommunications infrastructure high speed internet economic growth employment ICT productivity econometrics broadband infrastructure telecom investment. 2011-10-25T23:20:50-05:00 2 2 135 149 2011-10-25T23:20:50-05:00 http://www.inderscience.com/link.php?id=43352 To move towards an information society is a political goal of governments around the world. To achieve this goal, high-capacity broadband networks are regarded as fundamental infrastructure. An increase in broadband growth in a country results in increased opportunities for its people to participate in the network society. The EU, in particular, has initiated policies and regulations for more than ten years so that benefits of the information society can be fully enjoyed. The success of the EU is mostly based on DSL technology, which is driven by telecommunications regulations. Nevertheless, new applications and the increasing number of users will require more and more network capacity. While the EU leads the world in broadband penetration, it may fall behind in terms of competitiveness in the global market. The digital agenda in Europe has therefore been initiated to increase competitiveness through new fibre-based infrastructure. The main focus of this paper is on the NGA Recommendation. The paper analyses NGA in the EU based on a conceptual model that addresses the interaction between the strategic and the sector agenda. Challenges of fibre-based infrastructures: a review of the NGA debate in Europe
Orada Teppayayon; Erik Bohlin
International Journal of Management and Network Economics, Vol. 2, No. 2 (2011) pp. 150 - 176
To move towards an information society is a political goal of governments around the world. To achieve this goal, high-capacity broadband networks are regarded as fundamental infrastructure. An increase in broadband growth in a country results in increased opportunities for its people to participate in the network society. The EU, in particular, has initiated policies and regulations for more than ten years so that benefits of the information society can be fully enjoyed. The success of the EU is mostly based on DSL technology, which is driven by telecommunications regulations. Nevertheless, new applications and the increasing number of users will require more and more network capacity. While the EU leads the world in broadband penetration, it may fall behind in terms of competitiveness in the global market. The digital agenda in Europe has therefore been initiated to increase competitiveness through new fibre-based infrastructure. The main focus of this paper is on the NGA Recommendation. The paper analyses NGA in the EU based on a conceptual model that addresses the interaction between the strategic and the sector agenda.

]]> 10.1504/IJMNE.2011.043352 International Journal of Management and Network Economics, Vol. 2, No. 2 (2011) pp. 150 - 176 Orada Teppayayon; Erik Bohlin Department of Technology Management and Economics, Chalmers University of Technology, Vera Sandbergs Alle 8, Gothenburg 41296, Sweden. ' Department of Technology Management and Economics, Chalmers University of Technology, Vera Sandbergs Alle 8, Gothenburg 41296, Sweden NGA Recommendation competition investment sector agenda strategic agenda high-capacity broadband networks EU European Union Europe competitiveness fibre-based infrastructure next generation access networks. 2011-10-25T23:20:50-05:00 2 2 150 176 2011-10-25T23:20:50-05:00 http://www.inderscience.com/link.php?id=43353 The usage of mobile telephony has rapidly exceeded that of the fixed telephony in the last decade, and this was echoed with the widespread recognition of fixed-to-mobile substitution (FMS). FMS, denoting changes in market and consumer behaviour, creates new challenges for policy makers. This study first elaborates the plausible fact of FMS in Turkey in terms of both penetration rate and traffic and then concludes that there may be traffic substitution, but the existence of access substitution is questionable. In particular, this study proposes that policy makers should be aware of the unintended results and dilemmas of regulatory interventions, and they should adopt a more pragmatic approach, which would be the key to a successful policy response to FMS. Fixed-to-mobile substitution in Turkey: a policy perspective
Yavuz Göktaylar; Mehmet Bilal Ünver
International Journal of Management and Network Economics, Vol. 2, No. 2 (2011) pp. 177 - 196
The usage of mobile telephony has rapidly exceeded that of the fixed telephony in the last decade, and this was echoed with the widespread recognition of fixed-to-mobile substitution (FMS). FMS, denoting changes in market and consumer behaviour, creates new challenges for policy makers. This study first elaborates the plausible fact of FMS in Turkey in terms of both penetration rate and traffic and then concludes that there may be traffic substitution, but the existence of access substitution is questionable. In particular, this study proposes that policy makers should be aware of the unintended results and dilemmas of regulatory interventions, and they should adopt a more pragmatic approach, which would be the key to a successful policy response to FMS.

]]> 10.1504/IJMNE.2011.043353 International Journal of Management and Network Economics, Vol. 2, No. 2 (2011) pp. 177 - 196 Yavuz Göktaylar; Mehmet Bilal Ünver Information and Communication Technologies Authority, Ye?il?rmak S. No: 16, Demirtepe/Ankara, Turkey. ' Information and Communication Technologies Authority, Ye?il?rmak S. No: 16, Demirtepe/Ankara, Turkey fixed-to-mobile substitution mobile phones cell phones price regulation telecommunications policy Turkey universal service. 2011-10-25T23:20:50-05:00 2 2 177 196 2011-10-25T23:20:50-05:00 http://www.inderscience.com/link.php?id=43354 This paper demonstrates how stated-preference methods can be applied for modelling consumers' preferences in mobile telecommunications, and for measuring network effects. This will be illustrated with a case study of mobile phone operators in Poland. A random parameters multinomial logit model will be constructed to analyse consumer preferences. This approach allows calculating welfare effects, as well as marginal rates of substitution of the attributes used to describe the choices, such as operator brand and distribution of family and friends among available mobile networks. The results confirm the existence of a strong network effect, which is related to the size of the social network a particular subscriber belongs to, rather than the absolute size of the mobile operator's customer base. In addition, brand perception and brand loyalty will be identified as important determinants of operator choice. Finally, through the application of a non-market valuation method, monetary values of the network effect and of brand loyalty, will be calculated. Measuring network effects in mobile telecommunications markets with stated-preference valuation methods
Miko?aj Czajkowski; Maciej Sobolewski
International Journal of Management and Network Economics, Vol. 2, No. 2 (2011) pp. 197 - 215
This paper demonstrates how stated-preference methods can be applied for modelling consumers' preferences in mobile telecommunications, and for measuring network effects. This will be illustrated with a case study of mobile phone operators in Poland. A random parameters multinomial logit model will be constructed to analyse consumer preferences. This approach allows calculating welfare effects, as well as marginal rates of substitution of the attributes used to describe the choices, such as operator brand and distribution of family and friends among available mobile networks. The results confirm the existence of a strong network effect, which is related to the size of the social network a particular subscriber belongs to, rather than the absolute size of the mobile operator's customer base. In addition, brand perception and brand loyalty will be identified as important determinants of operator choice. Finally, through the application of a non-market valuation method, monetary values of the network effect and of brand loyalty, will be calculated.

]]> 10.1504/IJMNE.2011.043354 International Journal of Management and Network Economics, Vol. 2, No. 2 (2011) pp. 197 - 215 Miko?aj Czajkowski; Maciej Sobolewski Faculty of Economic Sciences, University of Warsaw, D?uga 44/50, 00-241 Warsaw, Poland. ' Faculty of Economic Sciences, University of Warsaw, D?uga 44/50, 00-241 Warsaw, Poland network effects mobile telecommunications brand valuation stated preference methods non-market valuation methods choice experiment multinomial conditional logit model preference heterogeneity random parameter models Poland mobile communications consumer preferences. 2011-10-25T23:20:50-05:00 2 2 197 215 2011-10-25T23:20:50-05:00