NGA, IP-Interconnection and Their Impact on Business Models and Competition

Abstract

Developments towards Next Generation Networks (NGN) have a strong impact on the design of the markets for electronic communications in general, but specifically on intercarrier relations with respect to interconnection and access. Due to the fact that competition in the European telecommunications environment has brought about alternative providers and their business models it is an interesting area to investigate how these business models will develop in an NGN environment and which (additional) business models may emerge in the future. To that end, the current paper looks at the development of different business models in the PSTN world and likely developments in the NGN world. This leads to conclusions with respect to requirements of the future regulatory framework of next generation networks in order to maintain the achievements of competition in the telecommunications area.

Keywords: NGN, business models, migration, competition, regulatory framework

JEL Classification: L50, L51