Real Options on New Generation Access Networks Based on FTTH. An Approach to the Spanish Case
26th European Regional Conference of the International Telecommunications Society (ITS), Madrid, Spain, 24-27 June 2015
27 Pages Posted: 12 Jul 2016
Date Written: June 24, 2015
The aim of this research was to identify and evaluate the real options for growth and of a regulatory nature in the investment projects of fixed-line fibre optic networks by an incumbent operator. This valuation exercise was undertaken for the Spanish market. The work is divided into five sections. First, there is an introduction to the technology deployment option of fibre to the home (FTTH). Next, will be presented a description of the Spanish market in relation to the deployment of fixed-line fibre optic networks and the strategy of the incumbent operator. In the third section, there will be a discussion on the case of the basis of valuation for a fibre to the home (FTTH) investment project in the Spanish market. In the fourth section will be presented and assessed the real options associated with the project presented in the third section. We analyze real options of growth and the actual choice linked to regulatory decisions related to the establishment of a regulated price in the wholesale market. The paper ends by presenting the main conclusions.
Keywords: Access network, copper to FTTH, Next generation broadband, Techno-economics, real options, migration copper to fibre
JEL Classification: G00, G31
Suggested Citation: Suggested Citation