Arbeitspapier

Investment under uncertainty and regulation of new access networks

Contractual and regulatory provisions for access affect incentives to invest in an upgraded network and, in particular, a next-generation access network. Investment decisions are made under uncertainty and have to be made over time. This papers provides a framework for taking uncertainty, risk aversion, and the timing of investment explicitly into account. First, it evaluates various access price policies in a framework in which the incremental value over the legacy network is uncertain. Second, introducing risk aversion, the access price structure turns out to be critical for the risk profile of the investing telecom operator and of the access-seeking alternative operator. Third, some implications of the time structure of access payments are derived.

Language
Englisch

Bibliographic citation
Series: ZEW Discussion Papers ; No. 13-020

Classification
Wirtschaft
Subject
NGA
investment under uncertainty
access price rule
telecommunications

Event
Geistige Schöpfung
(who)
Inderst, Roman
Peitz, Martin
Event
Veröffentlichung
(who)
Zentrum für Europäische Wirtschaftsforschung (ZEW)
(where)
Mannheim
(when)
2013

Handle
URN
urn:nbn:de:bsz:180-madoc-332965
Last update
10.03.2025, 11:43 AM CET

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Object type

  • Arbeitspapier

Associated

  • Inderst, Roman
  • Peitz, Martin
  • Zentrum für Europäische Wirtschaftsforschung (ZEW)

Time of origin

  • 2013

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