A real options approach to decision making in broadband technology selection

• The European Union has recently launched an ambitious plan to mitigate drastically, by 2025, the number of households lacking access to a 100 Mbps broadband connection through the subsidisation of the deployment of network infrastructure in rural areas. Decision makers such as governments and regulatory authorities therefore have to choose, among a pool of alternatives, a technology capable of delivering the required throughput on a large scale, based on a trade-off between the infrastructure costs and the subscribers’ perceived utility for each alternative. Such a trade-off is not simple, since there is no straightforward manner to rank the subscribers’ perceived utility against the network infrastructure cost. In this article, we propose a methodology based on real options, which outputs the value of each technology using multi-attribute value theory as an input, alongside the project’s risk and its costs.

Ämnesord

SAMHÄLLSVETENSKAP  -- Medie- och kommunikationsvetenskap -- Systemvetenskap, informationssystem och informatik med samhällsvetenskaplig inriktning (hsv//swe)

SOCIAL SCIENCES  -- Media and Communications -- Information Systems, Social aspects (hsv//eng)

Nyckelord

broadband

real options

multi-attribute value theory

MAVT

MCDM

risk analysis

convenience yield

5G

fibre to the home

FTTH

fibre to the cabinet

FTTC

G.Fast

DSL

Publikations- och innehållstyp

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