nep-ict New Economics Papers
on Information and Communication Technologies
Issue of 2020‒10‒26
eighteen papers chosen by
Marek Giebel
Universität Dortmund

  1. Determinants of FTTH tariffs: an empirical EU study By Aravantinos, Elias; Petre, Konstantin; Katsianis, Dimitris; Varoutas, Dimitris
  2. R&D and ICT in the Innovation Process of Japanese Innovative SMEs: Panel Data Analysis Based on Firm-Level Survey Data By Shigeno, Hidenori; Bunno, Teruyuki; Abu Taher, Sheikh; Tsuji, Masatsugu
  3. The investment gap for the deployment of high-speed broadband in NUTS3 regions By Ferrandis, Jesús; Feijóo, Claudio; Ramos, Sergio
  4. Improving digital financial services inclusion: A panel data analysis By Berdibayev, Yergali; Kwon, Youngsun
  5. Growth factors in developed countries: A 1960-2019 growth accounting decomposition By Cette Gilbert; Devillard Aurélien; Spiezia Vincenzo
  6. The economic impact of streaming beyond GDP By Edquist, Harald; Goodridge, Peter; Haskel, Jonathan
  7. Smart Campus 5G and IoT network preparations for operational mode: Specification to deploy data and network management By Jurva, Risto; Matinmikko-Blue, Marja; Niemelä, Ville; Hänninen, Tuomo
  8. The Value of Wi-Fi as Entertainment: An Application to Free Wi-Fi in City Buses of Korea By Kim, Yongwon; Kim, Yongkyu
  9. The Strategic Alliance in 5G Development in Taiwan: A Resource-based Approach By Hsu, Wen-Yi
  10. Total Service Long-Run Incremental Cost Modelling in Broadband FTTx Architectures By Romero Reyes, Ronald; Bauschert, Thomas
  11. The Determinants of Economic Competitiveness By Kluge, Jan; Lappoehn, Sarah; Plank, Kerstin
  12. What skills do employers seek in graduates?: Using online job posting data to support policy and practice in higher education By Nora Brüning; Patricia Mangeol
  13. Developing the Method for Estimating the Costs of Providing Broadband Universal Service: Korean Case By Lee, Hyeongjik; Jeong, Seonkoo; Lee, Kwanghee
  14. Common factors of withdrawn and prohibited mergers in the European Union By Bernhardt, Lea
  15. Network modelling approaches for calculating wholesale NGA prices: A full comparison based on the Greek fixed broadband market By Ioannou, Nikos; Logothetis, Vangelis; Petre, Konstantin; Tselekounis, Markos; Chipouras, Aris; Katsianis, Dimitris; Varoutas, Dimitris
  16. Disaggregating the drivers of mobile technology adoption: the threat of unobservable gender biases By Butler, Caroline
  17. Techno-Economic Analysis of Smart Home Hub and Integration Service By Kivekäs, Tuomo; Hämmäinen, Heikki; Niemelä, Jarno
  18. Cost, performance and energy consumption of 5G fixed wireless access versus pure fiber-based broadband in Sweden By Li, Jie; Forzati, Marco

  1. By: Aravantinos, Elias; Petre, Konstantin; Katsianis, Dimitris; Varoutas, Dimitris
    Abstract: This study examines the relevant factors that determine the FTTH tariffs within the European Union (EU) zone. FTTH networks, as a relevant new technology, have a significant impact on modern economies. This is reflected by their adoption and use across EU countries along with the increasing deployment. However, FTTH tariffs, play an important role in the technology's adoption, as they are driven both by the level of adoption and the market's competition. Looking at the EU countries between 2013 and 2018, we find a consistent effect of FTTH tariffs on national economic output with diminishing returns to scale. The study reveals that market player's competition is a moderator parameter on FTTH tariffs, in addition to the technology's adoption. Finally, FTTH tariffs tend to drop overall during the study's period across all the EU countries, motivating more residents to have access to high speed Internet and develop new applications. Hence, EU countries could achieve faster their goals, with subscribers' willingness to pay for high speed service with the right market competition and service offering in place, towards the 2020 national broadband plan regarding ultrafast connectivity.
    Keywords: FTTH,FTTP,Tariffs,NGA Broadband,Forecasting
    Date: 2020
    URL: http://d.repec.org/n?u=RePEc:zbw:itso20:224844&r=all
  2. By: Shigeno, Hidenori; Bunno, Teruyuki; Abu Taher, Sheikh; Tsuji, Masatsugu
    Abstract: This study seeks the elements of R&D and ICTs that play a role in the innovation process, and how these two are integrated with each other to achieve innovation. To achieve this goal, this paper uses panel data analysis. A fairly large number of panel data studies on innovation have appeared thus far, but the novelty of this paper lies in the authors' own firm-level survey data. The surveys were conducted in February 2012 and March 2017. The number of achieved innovations in the questionnaire is taken as an outcome variable. Explanatory variables related to R&D and ICTs were extracted from related questions by factor analysis. The fixed effect robust model with an instrumental variable (IV) is estimated, since the error term may contain heteroscedasticity. The significant variables are R&D autonomy (p
    Keywords: random effect,instrumental variable,R&D autonomy,R&D orientation,factor analysis
    Date: 2020
    URL: http://d.repec.org/n?u=RePEc:zbw:itso20:224875&r=all
  3. By: Ferrandis, Jesús; Feijóo, Claudio; Ramos, Sergio
    Abstract: This paper investigates the high-speed broadband situation in the EU and its prospects. Then it uses a deployment model to estimate the investment required in order to meet the European Gigabit Society (EGS) broadband targets set by the European Commission, aiming at ensuring the availability and take-up of very high capacity fixed and wireless networks, in both urban and rural areas, among households and main socio-economic drivers. The model uses data at the NUTS3 level, which is the most granular level that has data available on the status of broadband deployment, to arrive at a coherent and comparable framework. From the different perspectives on the investment to meet EGS targets, the paper concludes on the need to identify new public and private sources of investment and the case to attract them into the broadband business arena, since expected investment from incumbent and alternative operators would not be enough to fill the gap.
    Date: 2020
    URL: http://d.repec.org/n?u=RePEc:zbw:itso20:224854&r=all
  4. By: Berdibayev, Yergali; Kwon, Youngsun
    Abstract: The first goal of Sustainable Development Goals (SDGs) is the absence of poverty to be achieved by 2030. Thus, access to and usage of financial services play an important role in achieving this, where ICT and digital technologies are the main tools, that describe it as a digital financial service (DFS). It defines the provision of financial services and products through digital channels (mobile phone, cards, Internet etc.), and where DFS can be used remotely. DFS inclusion means to increase an access and usage of DFS through digital channels. We collected data for two years (Findex, 2014 & 2017) in 120 countries, overall 240 observation, and with depended variable as DFS inclusion, and independent 12 variables, such as GDP per capita, ATMs per adults, basic skills, Internet usage, mobile subscription, mobile 3G & 4G coverages (separately), mobile internet tariffs, handset prices, political stability, control of corruption and cybersecurity. In general, the regression yielded good results. Factors such as GDP per capita, political stability, control of corruption, mobile 4G coverage, ATMs per adults and mobile Internet tariffs are statistically significant factors for DFS inclusion. In addition, the r-squared value shows more than 0.8 in all models (running with 3G coverage, 4G coverage, both and also with dummy variable).
    Keywords: Digital financial service inclusion,Mobile money services,Financial services,Digital finance,Financial inclusion,Digital payments,Mobile money
    Date: 2020
    URL: http://d.repec.org/n?u=RePEc:zbw:itso20:224847&r=all
  5. By: Cette Gilbert; Devillard Aurélien; Spiezia Vincenzo
    Abstract: Using a new and original database, our paper contributes to the growth accounting literature with three original aspects: first, it covers a long period from the early 60’s to 2019, just before the COVID-19 crisis; second, it analyses at the country level a large set of economies (30); finally, it singles out the growth contribution of ICTs but also of robots. The original database used in our analysis covers 30 developed countries and the Euro Area over a long period allowing to develop a growth accounting approach from 1960 to 2019. This database is built at the country level. Our growth accounting approach shows that the main drivers of labor productivity growth over the whole 1960-2019 period appear to be TFP, non-ICT and non-robot capital deepening, and education. The overall contribution of ICT capital is found to be small, although we do not estimate its effect on TFP. The contribution of robots to productivity growth through the two channels (capital deepening and TFP) appears to be significant in Germany and Japan in the sub-period 1975-1995, in France and Italy in 1995-2005, and in several Eastern European countries in 2005-2019. Our findings confirm also the slowdown in TFP in most countries from at least 1995 onwards. This slowdown is mainly explained by a decrease of the contributions of the components ‘others’ in the capital deepening and the TFP productivity channels.
    Keywords: Growth, Productivity, ICTs, Robots.
    JEL: O31 O33 O47
    Date: 2020
    URL: http://d.repec.org/n?u=RePEc:bfr:banfra:783&r=all
  6. By: Edquist, Harald; Goodridge, Peter; Haskel, Jonathan
    Abstract: This paper finds that the shift from buying music as a physical product towards subscribing to music services implies a decrease of 85 percent in the price paid per song. We estimate that in 2019 the global quality adjusted value from streamed music was $76 billion compared to current revenues of $11.4 billion. Thus, the shift from consuming music in physical form towards subscribing to music services creates an enormous consumer surplus that is not recorded in GDP.
    Keywords: Streaming,price index,mobile broadband
    JEL: O31 O33 O34
    Date: 2020
    URL: http://d.repec.org/n?u=RePEc:zbw:itso20:224851&r=all
  7. By: Jurva, Risto; Matinmikko-Blue, Marja; Niemelä, Ville; Hänninen, Tuomo
    Abstract: Digitalization activities have been in process for several years covering most business areas. Enterprises around the globe have been preparing their digital transition by the deployment of novel ICT and IoT systems to strengthen their operational functions on many levels. It is envisioned that most businesses will benefit largely from digitalization. This applies also to research and education sector, where the universities are in role to show the way forward. Specifically, the campuses with ICT, cellular network technology and software research units are probably in the frontline to innovate and pilot sophisticated education and research environments. Utilization of data collected from specific surroundings by sensors, devices, machines, vehicles and individuals is increasingly in the focus of developing new services and applications in campuses. The discussion of data based services and applications has been increasing in recent years and emergence of specific data operators has been anticipated. Prior to the development of services and applications, it is important to specify the platforms for data management process for appropriate handling of data. A proper data management process consists of collection, warehousing, processing, refining and sharing of data while not forgetting privacy and security. Stakeholders like universities, business parks or cities are considering to initiate data operator activity by bringing open data available for service and application developers. Subsequently, another aspect with the data operator is the operation of network infrastructure. The campus discussed in this article has deployed 5G and IoT-sensor test network with edge and cloud computing functionality for research purposes. Complementary functionality like network management will be integrated in the next phase of network infrastructure development. In this paper we define the requirements on how to develop digital smart campus environment for data management and network infrastructure operations to establish an operative 5G/IoT network for research purposes. The requirement evaluation is done based on practical campus network use case in progress. Establishment of experimental 5G/IoT operative functions on campus enables to accelerate procreation of research based innovations specifically when the environment is open for enterprises, developers and innovators like the in the campus presented here. The innovations are piloted in the campus surroundings and the most promising ones are up-scaled to develop city governance or to offer services for smart city inhabitants. The most successful innovations will be scaled nationally and globally. Subsequently, a locally operated experimental 5G/IoT network infrastructure on campus advances to find novel approaches in telecom regulation and models for future telecom market which is foreseen to change significantly.
    Keywords: 5G,IoT,data management,network management,smart campus
    Date: 2020
    URL: http://d.repec.org/n?u=RePEc:zbw:itso20:224860&r=all
  8. By: Kim, Yongwon; Kim, Yongkyu
    Abstract: As the usage of mobile data is significantly increasing, the demand for free public Wi-Fi also continues to grow. The ministry of science & ICT (MSIT) and some municipalities in Korea have been constructing free Wi-Fi networks on mass transportation for the benefit of users. In this study, we estimate the economic value of Wi-Fi for leisure based on demand function, which considers the time cost of using the internet. By using the 2016-2019 Korean Media Panel (KMP) data, we estimated the yearly consumer surplus of Wi-Fi and that of Wi-Fi in city buses. In this way, we showed the cost-benefit analysis could be carried out in public Wi-Fi projects.
    Keywords: Wi-Fi,Internet,Consumer Surplus,Panel Analysis
    Date: 2020
    URL: http://d.repec.org/n?u=RePEc:zbw:itso20:224863&r=all
  9. By: Hsu, Wen-Yi
    Abstract: The 5G spectrum bidding was finalized, and the total 5G bid had hit a sky-high of NT $142.191 billion ($ 4748.33million). In the month of July, it is expected that there will be two telecom operators launching the 5G services, which is where the 5G era begins in Taiwan. Following Chunghwa Telecom and Far Eastern Telecom, the mobile broadband service security maintenance plan proposed by Taiwan Mobile has also been approved by the NCC on May 6, 2020. Taiwan Mobile is very active in cooperating with other players, including promoting the "5G Super Alliance" using the resource advantages available in the telecommunications industry, which allows cross-domain and cross-country alliance cooperation along with various leadership styles from different fields together with modern operation planning. In Taiwan, there is very few research about evaluating or selecting strategic alliance partners of telecommunications companies in the next generation network era. Taiwan Mobile's core resources and capabilities are different from those of other telecom operators. This research conducts a case study on Taiwan Mobile, using resource-based theory of strategic alliances to analyze its current status of 5G application service operations, "core resources" and 5G application service "strategic alliances" and other planning and development, exploring how Taiwan Mobile establishes its advantages and characteristics to develop its business strategy. Taiwan Mobile's "5G Super Alliance" gathers nearly 100 top teams in the three areas of production, government and research. Taiwan Mobile mainly forms a 5G application development strategic alliance in the form of functional agreements, joint research and development, and diversified integration. However, even with ambitious aspiration for the 5G technology, the real challenge of "network construction" in Taiwan's development of the 5G industry has only just begun.
    Keywords: 5G networks,complementary resources,resource-based theory of strategic alliances,spectrum bidding
    Date: 2020
    URL: http://d.repec.org/n?u=RePEc:zbw:itso20:224856&r=all
  10. By: Romero Reyes, Ronald; Bauschert, Thomas
    Abstract: This paper proposes an approach for the estimation of the cost contribution that FTTx broadband access networks make to the total service long-run incremental costs (LRIC) of the information services carried on these networks. The approach is applicable to the analysis of the techno-economic efficiencies of the business models enabled by the disaggregation/unbundling of the access network infrastructure. This is achieved by dimensioning first the access network for an expected service demand. The corresponding capital and operational expenditures are then calculated and apportioned to the services. The goal is to quantify the dependency of the LRIC on the architecture and the technologies used to deploy the access network. For selected business models, results are discussed for a case study that considers the provisioning of IPTV, VoIP and Internet services over FTTx networks implemented by active and passive optical networking technologies. The results show that the disaggregation of the access network may result in service cost savings compared to the traditional vertically integrated business model. Furthermore, different FTTx solutions based on active and passive technologies attain similar service costs.
    Keywords: Fixed broadband access networks,FTTx,Lon-Run Incremental Cost,Cost Allocation to Services
    Date: 2020
    URL: http://d.repec.org/n?u=RePEc:zbw:itso20:224873&r=all
  11. By: Kluge, Jan (Institute for Advanced Studies, Vienna, Austria); Lappoehn, Sarah (Institute for Advanced Studies, Vienna, Austria); Plank, Kerstin (Institute for Advanced Studies, Vienna, Austria)
    Abstract: This paper aims at identifying relevant indicators for TFP growth in EU countries during the recovery phase following the 2008/09 economic crisis. We proceed in three steps: First, we estimate TFP growth by means of Stochastic Frontier Analysis (SFA). Second, we perform a TFP growth decomposition in order to get measures for changes in technical progress (CTP), technical efficiency (CTE), scale efficiency (CSC) and allocative efficiency (CAE). And third, we use BART – a non-parametric Bayesian technique from the realm of statistical learning – in order to identify relevant predictors of TFP and its components from the Global Competitiveness Reports. We find that only a few indicators prove to be stable predictors. In particular, indicators that characterize technological readiness, such as broadband internet access, are outstandingly important in order to push technical progress while issues that describe innovation seem only to speed up CTP in higher-income economies. The results presented in this paper can be guidelines to policymakers as they identify areas in which further action could be taken in order to increase economic growth. Concerning the bigger picture, it becomes obvious that advanced machine learning techniques might not be able to replace sound economic theory but they help separating the wheat from the chaff when it comes to selecting the most relevant indicators of economic competitiveness.
    Keywords: Competitiveness, TFP growth, Stochastic Frontier Analysis, BART
    JEL: C23 E24 O47
    Date: 2020–10
    URL: http://d.repec.org/n?u=RePEc:ihs:ihswps:24&r=all
  12. By: Nora Brüning (OECD); Patricia Mangeol (OECD)
    Abstract: Employers increasingly reach job seekers through online job postings, particularly for jobs requiring a higher education qualification. Job postings available online provide a rich source of real-time and detailed data on the qualifications and skills sought by employers across industries, occupations and locations. Using a sample of over 9 million job postings in four US states (Ohio, Texas, Virginia and Washington), this paper explores three questions. How does employer demand for graduate skills vary geographically, within and among occupations? For graduates in a general study field without a dedicated career vocational pathway, like sociology, what occupational clusters show evidence of employer demand, and what skills are sought? Given the high demand in the field of information and communications technology (ICT), are employers looking for ICT specialists open to hiring graduates from study fields other than ICT?We find evidence of variation in occupational demand, and to some extent in skill demand, within occupational clusters across the four states. We identify three occupational clusters where sociology graduates are in most demand, with distinct skill profiles. We also find that, when filling ICT positions, a notable share of employers considers recruiting graduates from other fields of study while requiring those graduates have the right technical transferable skills.Job posting data, we conclude, hold promise to complement existing labour market information systems and aid educators and policy makers in aligning labour demand and educational offerings. If analysed and disseminated effectively, such data could also assist students and workers in making learning and career decisions, for instance by identifying opportunities to build their own non-traditional path into high-demand, high-paying ICT occupations.
    Date: 2020–10–13
    URL: http://d.repec.org/n?u=RePEc:oec:eduaab:231-en&r=all
  13. By: Lee, Hyeongjik; Jeong, Seonkoo; Lee, Kwanghee
    Abstract: While the importance of both broadband itself and its speed increases in a whole society, the high cost of providing broadband as universal service at high speed still raises a question of whether to introduce the USO. Therefore, the introduction of broadband universal service at 100Mbps since 2020 in Korea could be a meaningful case to study the necessity of broadband USO. This study attempts to propose an estimation model of the costs of providing broadband universal service in Korea and to introduce how the results by utilizing method can contribute to understanding the Korean case. In particular, since the proposed model was developed based on the bottom up (BU) approach, which establish es an efficient network using the latest technologies, this paper suggested the accurate and reliable cost of providing broadband universal service with nationwide coverage in Korea by the estimation model. The main findings are twofold. First, the total cost of providing broadband USO at 100Mbps through FTTH technology was at 1.34 trillion. Since it was relatively small compared with the results in similar previous studies, the introduction of broadband universal service was reasonably acceptable in Korea. Second, there was no significant difference in the average cost per building for broadband USO between 50Mbps and 100Mbps; thus the Korean government's decision, which sets the broadband speed for broadband USO at 100Mbps, was sufficiently reasonable at least from a cost perspective. Those results imply that at least developed cou ntries with relatively high broadband penetration could consider providing broadband universal services at least 50Mbps by fiber based technologies. They also suggest that the technology neutral approach could contribute to the cost effective deployment of broadband for USO.
    Keywords: cost estimation,universal service,broadband,Korea
    Date: 2020
    URL: http://d.repec.org/n?u=RePEc:zbw:itso20:224865&r=all
  14. By: Bernhardt, Lea (Helmut Schmidt University, Hamburg)
    Abstract: In this paper, we analyse the final decisions for merger cases prepared by the European Commission (EC) since 1990 and build a unique subsample for all non-cleared cases. These incorporate all merger notifications which were either withdrawn by the notifying parties or have been prohibited by the European Commission.We find a sudden decline in prohibitions and withdrawals of cases since 2002 and explore three judicial defeats of the European Commission as determining factors behind these developments. We also find a higher likelihood of withdrawal or prohibition if cases are registered in sectors which incorporate firms in the business of information and communication or transportation and storage. When classifying the documents with a supervised machine learning algorithm, we are able to automatically identify the cleared versus the non-cleared cases with over 90% accuracy. Finally, we find that network effects, high market shares and the risk of collusion are the main competitive concerns which contribute to prohibition decisions in the information and communications sector.
    Keywords: mergers; competition policy; EU Commission; classification; network effects
    JEL: G34 K21 L40
    Date: 2020–10–08
    URL: http://d.repec.org/n?u=RePEc:ris:vhsuwp:2020_184&r=all
  15. By: Ioannou, Nikos; Logothetis, Vangelis; Petre, Konstantin; Tselekounis, Markos; Chipouras, Aris; Katsianis, Dimitris; Varoutas, Dimitris
    Abstract: According to the 2013/466/ΕC Recommendation for setting copper and NGA wholesale access prices where cost orientation is imposed as a remedy, NRAs should adopt a BU LRIC+ costing methodology that estimates the current cost that a hypothetical efficient operator would incur to build a modern efficient 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 FTTH prices. In particular, the modified scorched node approach is compared to the extreme cases of the scorched node and the scorched earth approaches. Τhe 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. Obviously, these findings provide valuable information to both network operators and telecom regulators.
    Keywords: FTTH,(Modified) scorched node,scorched earth,wholesale NGA prices
    JEL: L43 L51 L96
    Date: 2020
    URL: http://d.repec.org/n?u=RePEc:zbw:itso20:224857&r=all
  16. By: Butler, Caroline
    Abstract: As the reach of mobile technology grows, it is becoming an increasingly powerful tool for access to welfare-enhancing information and services in low- and middle-income countries (LMICs). However, digital inclusion remains far from universal. Across LMICs, 14 per cent of adults still do not own a mobile phone, 39 per cent do not use mobile internet, and 38 per cent do not own a smartphone. Among other characteristics, these digitally excluded individuals are predominantly female. This study seeks to better understand the key drivers of mobile ownership, mobile internet, and smartphone use, with a particular focus on gender. Discrete-choice models, including logit, probit and linear models, are used to estimate the probability of adoption of these three types of technology. By including a suite of control variables for observable drivers of mobile adoption (e.g. education levels, age, employment, rural-urban location), the coefficient for gender represents non-observable effects which could be a product of discrimination and cultural norms. Furthermore, importance is placed on the inclusion of interaction terms in the regressions (for example, gender interacted with rural location), in order to isolate different degrees of marginalisation across the female population. In addition to the focus on gender, the marginal effects of the dependent variables for other factors (such as geography, education, employment, and age) will aid understanding of the key predictors of mobile use more generally. This research also shows how these predictors might vary by country and region, how they relate to each other, and which are the most important. This will provide relevant and important information for policy-makers. The research makes use of multiple years (2017, 2018, and 2019) of data from face-to-face consumer surveys sourced from the GSMA, which includes nationally representative samples of at least 1,000 respondents for 31 low- and middle-income countries. The wide geographic scope, and multi-year nature of the survey data results in a unique contribution to the literature, and the substantial number of observations allows for novel analysis of intersections of the female population. In summary, the initial results find that: women are 5 percentage points (pp) less likely to own a mobile phone then men, 6pp less likely to use mobile internet, and 4pp less likely to own a smartphone, even when other relevant socioeconomic and demographic factors are controlled for. This unobservable gender effect is more pronounced in certain regions, especially South Asia, but with no significant link in Latin America and Caribbean. The marginal effects of the interaction variables indicate that the negative impact is enhanced for women that live in rural areas, have low levels of literacy, and are not working. In addition, this study finds that the probability of mobile technology adoption increases (with varying magnitudes by technology type and region) with income, education, urban location, literacy, and employment. Adoption of mobile technology largely declines with age, but the impact generally does not appear to start until age 45 and above for mobile ownership.
    Date: 2020
    URL: http://d.repec.org/n?u=RePEc:zbw:itso20:224848&r=all
  17. By: Kivekäs, Tuomo; Hämmäinen, Heikki; Niemelä, Jarno
    Abstract: From the perspective of an access network operator, the smart home is an interesting opportunity. Operators have established customer relationships with their existing mobile and fixed broadband offering and view the smart home as an opportunity to create value-added services. Interoperability of smart home devices enables the full potential of smart homes as users are willing to use a single application for all their home control needs. Automation rules are one of the core benefits of smart home and requires interoperability between the devices. Interoperability and the single application as a control method can be achieved with a smart home hub and an integration service. One possible strategy for operators is to provide such hub and service. To provide a smart home hub and an integration service, operators have to choose how to partner with the hub manufacturers. The paper identifies three alternative ways for the partnership using Value Network Configuration method. To compare those three alternatives, called value network configurations, a techno-economic model is created, focusing especially on costs. Three value network configurations are compared with the model using example input data and a single value network configuration is recommended based on the economic results such as net present value, internal rate of return and payback period in combination with sensitivity analysis. The article also introduces a simple approach for modeling the effect of development time when comparing the value network configurations. With the used input data, the results of the techno-economic model indicate that the operator should choose a value network configuration in which the operator deploys their application but utilizes the hub manufacturer's backend.
    Keywords: Smart Home,Value Network Configuration,Techno-Economic Model
    Date: 2020
    URL: http://d.repec.org/n?u=RePEc:zbw:itso20:224864&r=all
  18. By: Li, Jie; Forzati, Marco
    Abstract: This work aims to contribute to the debate on the fixed wireless versus fixed line broadband access solutions by focusing on scenarios offering Gbps level broadband access. More specifically, we performed a techno-economic analysis on the cost, performance (in the term of download speed) and energy consumption of optical fiber versus 5G fixed wireless access (FWA) based solutions over a 10-year perspective. The study is based on the case in Sweden in order to achieve one of the Swedish government's 2025 broadband goals that 98% of Swedish households and workplaces should have at least 1 Gbps broadband access. Alongside with the pure fiber-based solution, 3 FWA-based scenarios using existing commercial macro cells, newly installed mmWave small cells, and hybrid macro and small cells, are evaluated. Based on the findings in this work we conclude that: 1) The pure fiber-based solution should be the "default" choice in order to achieve the Swedish government's 2025 broadband goal to reach 98% of Swedish households and workplaces with at least 1 Gbps broadband access; 2) Even though FWA using mmWave small cells is potentially capable of achieving the 1 Gbps @ 98% goal, the trade-off will be the high total cost levels and more energy consumption. In addition, the end user experience is subject to variations of whether and environmental conditions, and the distance to the network antenna; 3)FWA using existing commercial macro cells alone is not capable to reach the 1 Gbps @ 98% goal, despite the estimated relatively low cost. In addition, the estimated energy consumption level is also significantly higher than the pure fiber-based solution. To the best of our knowledge, this is the first-time reported techno-economic study on comparing 5G FWA with pure-fiber-based broadband access.
    Keywords: 5G,fixed wireless access,fiber broadband,techno-economic analysis
    Date: 2020
    URL: http://d.repec.org/n?u=RePEc:zbw:itso20:224866&r=all

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