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Network modeling approaches for calculating wholesale NGA prices: A full comparison based on the Greek fixed broadband market
Telecommunications Policy ( IF 5.6 ) Pub Date : 2021-05-15 , DOI: 10.1016/j.telpol.2021.102184
Nikos Ioannou , Vangelis Logothetis , Konstantin Petre , Markos Tselekounis , Aris Chipouras , Dimitris Katsianis , Dimitris Varoutas

According to the European Commission Recommendation for setting copper and fiber wholesale prices where cost orientation is imposed as a remedy, National Regulatory Authorities (NRAs) should adopt a Bottom-UP Long-Run Incremental Cost Plus (BU LRIC+) costing methodology that estimates the current cost that a hypothetical efficient operator would incur to build a modern efficient Next Generation Access (NGA) network. The starting point of modeling an efficient operator investing in NGA networks is the network modeling approach. In this paper, we compare the most widely adopted network modeling approaches in terms of wholesale fiber-to-the-home (FTTH) prices. In particular, the modified scorched node approach is compared to the extreme cases of the scorched node and the scorched earth approaches. The comparison between the aforementioned scenarios sheds light on the impact of each approach on the wholesale FTTH prices. The main finding of this paper is that the scorched earth approach leads to a maximum of 10% reduction in the short-term access prices compared to the most inefficient scorched node approach, whereas further extending its optimizations by optimizing the number of central offices, both the short-term and long-term wholesale price reductions are quite significant (more than 20%) regardless of service speeds. Consequently, NRAs should consider a geographically differentiated modeling approach when regulating the wholesale market by adjusting the level of scorching in each area and network segment according to the investment plans of telecom operators. An appropriate variation of the modeled network operator's efficiency is expected to more accurately represent the costs of a reasonably efficient operator based on the real market conditions and a forward-looking perspective. These findings provide valuable information to both network operators and telecom regulators.



中文翻译:

用于计算批发NGA价格的网络建模方法:基于希腊固定宽带市场的全面比较

根据欧洲委员会关于设定铜和纤维批发价格的建议,其中以成本为导向的补救措施,国家监管机构(NRA)应采用自下而上的长期增量成本加成(BU LRIC +)成本核算方法,以估算当前成本。假设的高效运营商需要花费成本来建立现代高效的下一代接入(NGA)网络。对高效运营商投资NGA网络进行建模的起点是网络建模方法。在本文中,我们根据批发光纤到户(FTTH)价格比较了最广泛采用的网络建模方法。特别地,将改进的焦点方法与焦点方法和焦土方法的极端情况进行了比较。上述情况之间的比较揭示了每种方法对FTTH批发价格的影响。本文的主要发现是,与效率最低的焦头节点方法相比,焦土方法最多可将短期接入价格降低10%,而通过优化中心办公室的数量进一步扩展了其优化,两者无论服务速度如何,短期和长期批发价格的降低幅度都非常可观(超过20%)。因此,在监管批发市场时,NRA应根据电信运营商的投资计划,通过调整每个区域和网络段的烧焦水平,来考虑地理位置差异化的建模方法。建模网络运营商的适当变体 根据实际的市场情况和前瞻性的观点,效率有望更准确地代表合理高效的运营商的成本。这些发现为网络运营商和电信监管机构提供了宝贵的信息。

更新日期:2021-05-15
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