Study on the determinants of investment in VHCN – a System Dynamics approach

Document number: BoR (19) 246

Document date: 11-12-2019

Date of registration: 03-01-2020

Document type:
Author: Decision Analysis Services Ltd; SPC Network Ltd; Strategy Dynamics Ltd; Greenwood Strategic Advisors AG

There is an established political consensus in Europe that Very High Capacity Networks (VHCNs) are required to create the “Gigabit Society” that will drive economic and social growth and the competitive position of the European Union. VHCNs, including Fibre to the Premises (FTTP) and fibre backhaul to mobile base stations to support 5G services, will be needed to meet demand for high speed communications and access to the Internet for video and other data-rich applications.

BEREC commissioned this study to consider how new tools and approaches can best represent the complexity of VHCN investment within regulated markets and understand how the underlying structures, path dependences and actions of all stakeholders in this system will influence observed behaviours. 

The content of this report does not reflect the official opinion of the Body of European Regulators for Electronic Communication. Responsibility for the information and views expressed therein lies entirely with the authors.