Center for Information and
Communication Technologies
Techno-Economics of Residential
Broadband
Copenhagen, June 20, 2006
Halldor Matthias Sigurdsson ([email protected])
Motivation
Center for Information and
Communication Technologies
Objectives


Feasibility, strategy,
Market Dynamics
–
Broadband development and ubiquity

Network and service convergence

Infrastructure development
–
Existing operators upgrading their infrastructure
–
New entrants building new and competing
infrastructure
Target Group
Economic Evaluation
–

Competition, policy effect

Operators

Vendors

Policy & Regulation

Interest Groups
Techno-Economics of Residential Broadband
Page 2
Techno-Economics
Center for Information and
Communication Technologies

Theory / Methodology developed in European
research projects

Financial evaluation of financial viability
–


Output NPV, IRR
Scenario Based
–
Sensitivity analysis
–
Comparison of technologies / scenarios
One of several available methods
–
Economic models, econometric models, Cost-Proxy Models, System
Dynamics Models
Techno-Economics within CICT

Participation in Research Projects
–

Construction of techno-economic models
Ph.D. project
–
Development of methodology
Techno-Economics of Residential Broadband
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Implementation
Center for Information and
Communication Technologies

CPE
CPE
CPE
CPE
CPE
CPE
CPE
CPE
CPE
CPE
CPE
CPE
CPE
CPE
CPE
CPE
CPE
GS
AG
GS
AG
GS
AG
CPE
CPE
CPE
CPE
CPE
CPE
CPE
CPE
CPE
CPE
CPE
CPE
CPE
CPE
CPE
CPE
CPE
CPE
CPE
CPE
GS
AG
CPE
CPE
CPE
CPE


GS
AG
CPE
CPE
CPE
CPE

Slow Internet Browsing
Fast Internet Browsing
Multimedia
Interactive Multimedia
Urban
Suburban
Rural
Infrastructure Scenarios:
–
–
–
S1:
S2:
S3:
S4:
Socio-economic zones:
–
–
–
CPE
CPE
ADSL
ADSL2+
HFC Cable modem
FTTH
WiMax
Service Profiles:
–
–
–
–
GS
AG
CPE
GS
AG
–
–
–
–
–
GS
AG
AG
GS
LE
Access Technologies:
Greenfield
Existing Infrastructure Upgrade
Model Design
• Implemented as Excel 2003 Spreadsheet
• Programming Code in Visual Basic for Applications
(VBA)
• Graphical User Interface in VBA
• Model runs as macro in Excel
Techno-Economics of Residential Broadband
Page 4
Development
Center for Information and
Communication Technologies
User

Techno-economic models are static

Combine dynamics from economic
models

Incorporate effects of infrastructure
competition

Effect of policy and regulation

Calculate cost of Universal Service
Program
Algorithms for
Optimisation
User Interface
Subroutines for
constructing reports
VBA
ENGINE
CORE
Microsoft Excel
Database / Spreadsheets
Spreadsheet
Spreadsheet
Spreadsheet
Spreadsheet
Component / Cost
Database
Resource
allocation
CAPEX
calculations
OPEX
calculations
Techno-Economics of Residential Broadband
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Empirical Approach
Center for Information and
Communication Technologies

Case Studies
– Denmark
– Iceland

Supported by
– Europe
– US
– Asia

Research Goal
– Investigate development and use of techno-economic
models as a tool for understanding market trends and
dynamics

Explain two major trends
– FTTH projects by Electronic Utility Companies
– Broadband scarcity in rural areas
Techno-Economics of Residential Broadband
Page 6
Center for Information and
Communication Technologies
Questions ?
For questions or comments
Please feel free to contact
[email protected]
Techno-Economics of Residential Broadband
Page 7
Center for Information and
Communication Technologies

ECOSYS
–
–
–
–

Techno-economics of integrated communication systems and services
Part of the Celtic Program
Period 2004-2007
http://www.celtic-initiative.org/Projects/ECOSYS/default.asp
TONIC
–
–
–
–

Techno-Economic Project
TONIC is a project that concentrates on techno-economic evaluation
of new communication networks and services
Part of the IST Program
Period 2000-2003
http://www-nrc.nokia.com/tonic/
TETRA
–
–
–
–
Support consolidation, condensing and rationalising of deployment
guidelines for introduction of advanced communication services and
networks
Part of the ACTS Program
Period 1994-2000
http://www.telenor.no/fou/prosjekter/tera/
Techno-Economics of Residential Broadband
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