Motives and means for public investment in nationwide next generation networks

There is now strong interest among governments in allocating public funds for the purpose of promoting investment in very high speed broadband. Motives include industrial policy, and the attainment of equity objectives and of economic recovery. The paper examines the various dimensions of choice over where and how to intervene. It also considers three nationwide broadband plans in Australia, New Zealand and Singapore, in each of which industrial policy appears to be the major objective, combined with equity goals. Particular attention is paid to the resolution of problems related to the incumbents’ legacy assets.     

Public private partnerships as a tool for stimulating investments in broadband

The paper is concerned with PPP in the telecommunications area and more specifically with the combination of public and private investments in upgrading broadband infrastructures. Following the liberalization of the telecommunications area, investments were primarily left to the private sector – though public investments have continued to take place in specific areas such as research and education networks and rural and otherwise underserved areas. Lately, however, governments have upgraded their public investment plans in broadband infrastructures. The question is whether we are witnessing a simple quantitative change or whether this quantitative change includes a qualitative evolvement in the view on the role of the public sector in expanding broadband infrastructures. At the present time, the most likely answer is that increasing public investments in broadband infrastructures signal a combination of concerns raised by the economic crisis and the growing awareness of the social and economic importance of efficient broadband infrastructures.     

Fibre-to-the-home,high-speed and national broadband plans: Tales from Down Under

In recent years governments in many countries have acknowledged the higher complexity involved in finding the more efficient path towards a so-called broadband ecosystem. As the first decade of the twenty first century was ending, the governments of Australia and New Zealand committed to the construction of high-speed, fibre-optics next-generation access networks. This paper is about the approach followed by Australia and New Zealand to developing broadband infrastructure, the means deployed to build the network, and policy and market issues. The paper critically analyses the short history of each experience, including the political process, the reasons exhibited to justify the governments' involvement in infrastructure deployment, and the institutional arrangements introduced to manage the participation of private partners. The paper proposes a framework for analysis and uses its elements to critically analyse policy and regulatory decisions affecting the deployment rate and goals set by Australian and New Zealand government for their respective fibre-based next-generation platforms. The framework is used to draw comparisons between the two country cases and in so doing allowing the appreciation of commonalities and differences in the development and expectations for the future of telecommunications markets in the region.     

The Indian broadband plan: A review and implications for theory

Given the benefits of ubiquitous broadband deployment and availability that include economic growth, participation in the Internet economy and increased competitiveness, several countries have launched major national initiatives to accelerate broadband deployment including supporting such initiatives often as a part of their fiscal stimulus plans. These include Afghanistan, Australia, Brazil, India, Japan, New Zealand, South Korea, Singapore, Sweden, UK and USA and the European Union as a whole.     

Public policy for fibre-to-the-home

Integrated broadband networks are very costly, but many US industry analysts believe their introduction to the residential sector should be a national policy goal. Unfortunately current policy towards fibre-to-the-home is inherently unstable, and pits public and private needs against one another. A choice must be made between a public infrastructure approach, in which social costs and benefits are given greatest weight, and a private market paradigm, where communications networks develop according to market forces. This article examines some of the implications of each approach.     

Long term risk sharing contracts as an approach to establish public–private partnerships for investment into next generation access networks

This paper develops an investment/pricing model for the deployment of basic broadband networks which, along with other applications, is applicable to public–private partnership projects. In particular, a new investment model is suggested to be used for finance deployment over a longer term by enabling both private and public investors to participate in the roll-out of next generation access (NGA) infrastructure. This so-called “long-term risk sharing concept” has several notable benefits compared with the traditional regulatory approach. Above all, the model enables both private operators and public authorities to share the risk of investing in NGA infrastructure. Thus the model offers a way for public authorities to achieve a timely and countrywide roll-out of NGA networks, including in areas where NGA investment would otherwise not occur.     

Municipal support of wireless access network rollout: A game theoretic approach

Next generation access networks are expected to bring ubiquitous broadband access and have attracted interest of municipal governments. This paper investigates the support by municipal authorities for the rollout of such a city-wide wireless broadband access network. Different business cases for 3G and WiFi operators are developed and it is indicated how to model the specificities for commercial versus public players. Furthermore, a game theoretic approach is used to investigate the investment options of the municipal player. It is shown that a partnership between a commercial and public player is the most likely investment strategy. However, bringing more players into the competitive environment reduces the intention of the commercial partner to engage in the public–private partnership (PPP).     

Multilevel governance and broadband infrastructure development: Evidence from Canada

This paper investigates the contributions of digital infrastructure policies of provincial governments in Canada to the development of broadband networks. Using measurements of broadband network speeds between 2007 and 2011, the paper analyzes potential causes for observed differences in network performance growth across the provinces, including geography, Internet use intensity, platform competition, and provincial broadband policies. The analysis suggests provincial policies that employed public sector procurement power to open access to essential facilities and channeled public investments in Internet backbone infrastructure were associated with the emergence of relatively high quality broadband networks. However, a weak essential facilities regime and regulatory barriers to entry at the national level limit the scope for decentralized policy solutions.     

Factors determining municipal broadband strategies across Europe

Recognizing that high-speed broadband connectivity emerges as a key element for growth, city authorities engage in fiber access deployments to empower their local communities in the digital economy. Currently, a growing number of municipal fiber projects are underway or planned while the international community and the telecommunications industry are yet undecided about the role and type of municipal intervention. This paper takes a holistic view of municipal broadband in Europe, aiming to understand the factors that determine municipal strategies in fixed Next-Generation Access (NGA) networks and the implications of municipal broadband to regulation and markets. The data suggests that the determining factors are (a) the engagement of public utilities; (b) the involvement of the private sector in joint infrastructure projects; (c) the local demand for retail and wholesale services; and (d) the institutional and regulatory framework at the European and national scale. The findings of the study indicate that (a) municipal initiatives are highly dependent on national factors, thus the resulting interventions fare strong resemblance within a single country, while they can be substantially different across national contexts; (b) current EU provisions for public involvement in broadband development stimulate municipal plans for large scale arrangements; and (c) national regulatory frameworks, that primarily address vertical integrated incumbents and nationwide markets, may need adjustments to handle emerging access monopolies of regional and city broadband infrastructures.     

Next Generation Access (NGA) supply side interventions—An international comparison

Over the last years, technical and economic developments towards the deployment of Next Generation (Access) Networks have triggered discussions under which circumstances investments into physical infrastructure are economically viable. In many countries the discussion has arisen regarding conditions under which private investment will/will not be undertaken and whether or not in such cases public policy measures should support deployment. This could come in different ways—from incentivizing private investments to deploying new “state-owned” networks. Public policy can have an impact for example by intervening into a competitive market. The paper tries to provide answers as to “why” such interventions and supply side policies are undertaken (thereby referring to the central role that broadband infrastructures have for the economy) and “how” such interventions take place, for example an analysis of the public policy interventions to drive Next Generation Access Network deployment. The article thereby derives policy patterns that have occurred in different regions of the world.     

Standards, trade and competition in the emerging global information infrastructure environment

Decentralized construction of the Global Information Infrastructure (GII) is substituting market-driven, ‘de facto’ standards and voluntary agreements on standards for technical compatibility, in place of the engineering decisions once made by public (and quasi-public) telecommunications network operators. Due to strategic economic behaviours on the part of private businesses and national governments, the goal of a fully interoperable GII remains elusive. The Internet does not offer an entirely credible alternative model, as the standards that have facilitated its explosive growth also are contributing to serious congestion problems, and the solutions proposed point to the Internet's re-integration into the public switched telecommunications network. Technical standards will shape the GII's implications for international trade and competition, and thus raise important, but inadequately recognized issues for regulation, competition and trade policy.     

Deployment of high-speed broadband infrastructures during the economic crisis. The case of Xarxa Oberta

The deployment of fibre based Next Generation Access Networks (NGANs) entails a crisis dilemma. During crisis, public administrations are eager to actively impulse investment in NGANs since the deployment of these networks may increase productivity in the long run and promote economic recovery in the short run. However, the crisis has reduced the access to the credit market and has increased the fiscal deficit. Consequently, the resources of the public sector to invest have been severely limited. Thus, it is crucial to analyse how the public investment plans in NGANs should be designed and implemented during bad times, under scarcity of public resources. The article proposes some guidelines for the design and implementation of effective and affordable public projects for the deployment of NGANs. These guidelines are illustrated by discussing the Xarxa Oberta case, a project for the deployment of a NGAN in Catalonia (Spain).     

Lessons from broadband development in Canada,Japan, Korea and the United States

Broadband network development does not always track closely a nations overall wealth and economic strength. The International Telecommunication Union reported that in 2005 the five top nations for broadband network market penetration were: Korea, Hong Kong, the Netherlands, Denmark and Canada. The ITU ranked the United States sixteenth in broadband penetration.Aside from the obvious geographical and demographic advantages accruing to small nations with large urban populations, broadband development thrives when it becomes a national priority. Both developed and developing nations have stimulated capital expenditures for infrastructure in ways United States public and private sector stakeholders have yet to embrace. Such investments have accrued ample dividends including the lowest broadband access costs in the world. For example, the ITU reports that in 2002 Japanese consumers paid $0.09 per 100 kilobits per second of broadband access compared to $3.53 in the United States.Economic policies do not completely explain why some nations offer faster, better cheaper and more convenient broadband services while other nations do not. This paper will examine best practices in broadband network development with an eye toward determining the optimal mix of legislative, regulatory and investment initiatives. The paper will track development in Canada, Japan and Korea as these nations have achieved success despite significantly different geographical, political and marketplace conditions. The paper also notes the institutional and regulatory policies that have hampered broadband development in the United States.The paper also will examine why incumbent local exchange and cable television operators recently have begun aggressively to pursue broadband market opportunities. The paper will analyze incumbents’ rationales for limited capital investment in broadband with an eye toward determining the credibility of excuses based on regulatory risk and uncertainty. The paper concludes with suggestions how national governments might expedite broadband infrastructure development.     

Demand-side broadband policy in the context of digital transformation: An examination of SME digital advisory policies in Wales

Increasing attention has been paid to the potential for demand-side policies to stimulate use of broadband networks. Such policies form part of the increasing digitalisation of the economy and wider society. This is an area where governments are also facing challenges in their efforts to maximise the efficiency and effectiveness of their policies. The paper sheds light on the impact that the transition towards digital has had on demand-side policies supporting the adoption of broadband and digital technologies by SMEs, and draws out the implications for policy, using a case study of Wales in the UK over a ten-year period. It shows that digitalisation has seen policy mechanisms and messages evolving as policy makers have created a more integrated and multi-channel approach to the delivery of advisory support to SMEs, but that the emergence of multiple types of actors (large digital platform businesses) and ongoing digitalisation are adding complexity to policies and their interaction with other forms of public and private business support.     

Public policy targets in EU broadband markets: The role of technological neutrality

The European Commission has recently sought to substantially revise how it regulates the telecommunication industry, with a key goal being to incentivise investment in high-speed broadband networks. Ambitious goals to incentivise investment in high-speed broadband networks have been set across the European Union, initially in the ‘Digital Agenda for Europe’ and more recently in its ‘Gigabit strategy’. These goals reflect the view of many that there are widespread and significant socio-economic benefits associated with broadband. Our analysis explores the consequence of target setting at a European level, in terms of encouraging investment and picking which technology should be adopted within the context of technological neutrality. We demonstrate that while public policy targets might implicitly favour specific technologies, especially when gigabit targets are defined, the technological choices that occur within individual Member States are shaped by the complex and dynamic interaction between a series of path dependencies that may vary significantly across as well as within Member States. Adopting an ecosystem perspective, we propose a conceptual framework that identifies the key factors associated with technological neutrality and informs a rational decision-making process.     

Interests, Institutions and Industrial Relations

In the comparative politics literature there are two main approaches to the impact of international economic change on national policy patterns. The first — new institutionalism — has been very influential in comparative industrial relations scholarship. The second, which focuses on the role of interests, has been less prominent. Comparing industrial relations reform in Australia and New Zealand during the 1980s and 1990s, this paper argues that there are a number of limitations to an institutionalist approach and outlines a framework for the comparative study of the impact of international economic change on national patterns of industrial relations which integrates both institutionalist and interest‐based approaches.     

当前国际政府债务问题的特征、影响及警示

为应对席卷全球的国际金融危机,各国政府纷纷采取经济刺激措施,代替民间企业和金融机构承担危机成本,这不可避免带来一定的政府债务问题。随着时间的推移,这些政府债务问题逐步凸显,成为各国和全球经济走出危机阴影的障碍。当前国际上各国政府债务问题呈现脆弱性、复杂性、集中性和长期性特征,成为全球经济复苏的绊脚石,甚至会给世界各国经济带来灾难性影响。我国应该从中得到一些警示。     

The participation society and its inability to correct the failure of market players to deliver adequate service levels in rural areas

This paper critically reviews the ‘participation society’ inspired policy measures of two Dutch provinces (Drenthe and Groningen) for providing rural broadband. Based on a database with broadband initiatives, interviews with stakeholders, focus groups and document analysis, it analyzes how rural broadband initiatives and regional governments interact in their ventures to provide superfast broadband to rural communities. Essential in this is that in the Dutch participation society concept, citizens' initiatives are seen as an important actor to deal with failing service delivery by market players in rural areas. The relation between regional governments and citizens' initiatives, however, is troublesome, resulting in inadequate policies. Key findings are that even when governments come up with supportive policies for citizens' initiatives, initiatives still experience governmental efforts as constraining factors. Regional governments apply ‘old style’ governance and construct generic policy instruments, forcing initiatives to put a lot of effort in complying with generic policy requirements or political goals. Overall, solving a national market problem at the regional level proves to be problematic. More national guidance is needed to solve the rural broadband gap.