Post Covid Telecoms: A System Dynamics Model of Demand Side Shock

SPC Network and DAS have updated our System Dynamics model of investment determinants to capture the demand side shock in broadband services caused by Covid 19 and the lockdown.

When SPC Network and DAS Ltd developed a System Dynamics model of the determinants of investment in Very High Capacity Networks (VHCNs) in 2019, the world had not heard of Coronavirus and Covid 19. Since then it has changed, and continues to change, our world. Amongst its many effects is a discontinuity in the demand for VHCNs as consumers need better access at home for work and leisure.

System Dynamics is able to capture how this discontinuity can have significant effects on the determinants of investment. In a regulatory context it can help identify the first, second and third order effects a decision by an NRA can have and how it might affect investment levels in the wake of this demand side shock. The latest version of Hexagon introduces our current work.