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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 Business Georg Götz, Justus-Liebig-University Giessen Anton Schwarz, Rundfunk und Telekom Regulierungs- GmbH Recommended Citation: 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. DOI: 10

% of all customers were reachable by entrants. Call-by-call and preselection (not yet local), number portability (in the fixed network). 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. 3.2. Outcomes The

Abstract

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.

Forecast for PCN's 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 fixed network. This scenario has been much encou- raged by the attitude of the European Union Commission towards telecommu- nications industry liberalisation. The

. 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 fixed network 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

-ser- 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 fixed networks and mobile growth strengthened fixed networks. Later on, they appeared to become substitutes to fixed networks and mobile growth reduced the size of fixed networks 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 fixed network are dual-source four-sink and dual-source eight-sink network respectively, which are shown in Figure 3 . Figure 3: Fixed network topology. The random topology network

internet: A survey of existing approaches and trends in energy-aware fixed network 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 fixed networks because they do not require an expensive (and sunk) access network connecting each user’s location with the network. Also