Economically sustainable ultrafast broadband markets
Liberty Global asked SPC Network to assess how many ultrafast broadband networks would be economically sustainable in the light of the large number of such networks being built across Europe today. To examine this question, we developed an indicative model of sustainable markets based on supply and demand conditions in areas of different population densities. Based on our assumptions, we found that these markets could sustain between one and three networks with all operators able to earn a positive profit.
Ultimately, we argued that it would be wrong to set a per se rule on the minimum number of suppliers in a market if that number is economically unsustainable as this would deter efficient investment. Instead, relevant authorities should treat each case on the merits and assess how many firms a market can sustain based on both supply and demand-side conditions.
The full report is available for download on the link in this page.