Volume 10, Issue 4 2011 Article 3
Review of Network Economics
Margin Squeeze in Fixed-Network Telephony
Markets — Competitive or Anticompetitive?
Wolfgang Briglauer, Vienna University of Economics and
Georg Götz, Justus-Liebig-University Giessen
Anton Schwarz, Rundfunk und Telekom Regulierungs-
Briglauer, Wolfgang; Götz, Georg; and Schwarz, Anton (2011) "Margin Squeeze in Fixed-
Network Telephony Markets — Competitive or Anticompetitive?," Review of Network
Economics: Vol. 10: Iss. 4, Article 3.
% of all customers were reachable by
Call-by-call and preselection (not yet local), number portability (in the
Third party billing.
Creation of nationwide competition, based on few points of intercon-
nection and low interconnection charges.
Based on favorable input regulation, the initial emphasis was on price and
service competition. This led to large price reductions in long distance and
international, but not in local telephony. Price caps were not binding until
the end of 2001, when new adjusted price caps were set.
This paper studies the group consensus problem for second-order multi-agent dynamic systems with time-varying delays, where the agents in a network may reach one more consistent values asymptotically. The fixed network topology is in case of being directed and weakly connected. Based on algebraic graph theory and Lyapunov function approach, we propose some sufficient conditions for reaching group consensus. All the results are presented in the form of linear matrix inequalities(LMIs). A simulation example is provided to demonstrate the effectiveness of the theoretical analysis.
Personal Communications Networks
(PCN's), a service which is defined as
offering personal communications at a
cost level that is sufficently low as to
attract a mass subscriber audience, are
poised for a mass market breaktrough
towards the end of the decade.
According to a new report by interna-
tional market research publisher Frost
& Sullivan, PCN's are likely to chal-
lenge the role of the fixednetwork.
This scenario has been much encou-
raged by the attitude of the European
Union Commission towards telecommu-
nications industry liberalisation.
. Univ., Kraków).
Dr. Ernst-Olav Ruhle is managing
director of Piepenbrock Schuster
Consulting AG in Düsseldorf and
Vienna. He works as consultant
focused on business consulting in the
ICT sector and regulated network
industries with an international
background. Areas of work cover
particular fixednetwork telecommu-
nications, mobile communications,
broadcasting, IT/IP, energy and post.
He has gathered experience in the
ICT sector as well as in regulatory
affairs and conducted business con-
sulting, market research, monetary
analysis, expert opinions, industry
vice solution on the basis of its SUR-
PASS hiT multi-service provisioning
platform. The network is designed as a
backbone that runs from Mombasa on
Kenya’s southeastern coast to its neigh-
bor Uganda in the west and provides
quick and reliable data communication
throughout the entire country. Operat-
ing as a “carriers’ carrier”, KDN will
offer the transmission capacities of its
network also to the largest mobile com-
munication providers and Internet ser-
vice providers as well as fixed-network
operators in Kenya. In addition, the
backbone will connect
mobile markets implies that both technologies are used together. Therefore, when mobile networks were young, they were complements for fixednetworks and mobile growth strengthened fixednetworks. Later on, they appeared to become substitutes to fixednetworks and mobile growth reduced the size of fixednetworks potentially leading to their demise ( Vogelsang 2010 ). Specifically, in the early 1990s, after the GSM technology, mobile demand increased and prices declined ( Gruber 2005 ). The trend of substitution between fixed and mobile services started to occur with
4.1 Simulation parameter settings The performance of proposed IAGA is simulated on Matlab R2010a by comparing with the GA algorithm proposed in [ 14 ], MCN algorithm proposed in [ 9 ] and MCLIGA algorithm proposed in [ 12 ]. In the Simulation, optical network topologies are two fixed butterfly network and the random topology network generated by the Salama model [ 17 ]. And two fixednetwork are dual-source four-sink and dual-source eight-sink network respectively, which are shown in Figure 3 .
Figure 3: Fixednetwork topology. The random topology network
internet: A survey of existing approaches and trends in energy-aware fixednetwork infrastructures, IEEE Communications Surveys & Tutorials 13 (2): 223–244. Bolla, R., Bruschi, R. and Ranieri, A. (2009). Green support for PC-based software router: Performance evaluation and modeling, IEEE International Conference on Communications (ICC’09), Dresden, Germany , pp. 1–6. Brownlee, N., Mills, C. and Ruth, G. (1999). Traffic Flow Measurement: Architecture , RFC 2722 (Informational), Internet Engineering Task Force, http://www.ietf.org/rfc/rfc2722.txt Callaway, R
those offered by other networks, such as cable
TV or 4G, so that the natural monopoly properties may not be particularly strong but
the investment may be particularly risky.5
Ad (3): FMS means that fixed as well as mobile networks, by becoming substi-
tutes will compete with each other, leading to additional facilities-based competition
(for a survey on FMS see VOGELSANG 2010). Mobile networks tend to be more com-
petitive than fixednetworks because they do not require an expensive (and sunk)
access network connecting each user’s location with the network. Also