Juan Rendon Schneir | Pompeu Fabra University (original) (raw)

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Papers by Juan Rendon Schneir

Telecommunications Policy

5G networks are envisioned to provide consumers and industry with improved transmission performan... more 5G networks are envisioned to provide consumers and industry with improved transmission performance and advanced communication possibilities. To deliver on this promise of ushering in faster downloads and lower latency, mobile network operators are called upon for substantial investment in network infrastructure. Investors and operators need a clear 5G business case before making such investment. So far, very little research has been published on the topic of the 5G business case. This article studies the impact of different elements driving the business case of a 5G network. The study was performed within 3 boroughs of central London, UK, for the period 2020-2030. 5G-related costs and revenues were calculated to derive the business case. The results show that the business case for a 5G network providing mobile broadband services alone is positive over the time period 2020-2030 but has some risk in the later years of this time period. The business case is also particularly sensitive to assumptions on the revenue uplift and the rate of traffic growth which are inherently challenging to forecast. The sensitivity analysis shows that the return on investment becomes negative if both traffic and costs are significantly higher and revenues increase more slowly than our baseline forecasts. Network sharing helps to substantially improve the business case. Further research is needed to understand the business case on a regional or nationwide basis, and for a network that provides additional services beyond broadband.

This article examines the cost implications of a network-sharing scheme for different fiber to th... more This article examines the cost implications of a network-sharing scheme for different fiber to the home/passive optical network (FTTH/PON) architectures. Varied metrics are employed
to understand the effect of a network-sharing arrangement on costs. The results show that for the majority of cases studied the cost per home connected and the payback period increase when employing a network-sharing scheme, but the initial investment is strongly
reduced. The reuse of existing passive infrastructure does not bring any cost advantage in comparison to the stand-alone scenario, but it helps to reduce the total cost per home connected.

Due to the high costs associated with the deployment of the passive infrastructure of FTTH networ... more Due to the high costs associated with the deployment of the passive infrastructure of FTTH networks, a few alternative operators have pon
dered the possibility of making co-investments based on a network sharing model. The purpose of this article is to explore economic aspects of a co-investment scheme for present and future FTTH/PON architectures. The article describes the cost reductions that can
be achieved when a co-investment scheme is used, as well as the relationship between market shares and the cost per home connected. A cost model was employed to calculate the investment per home passed and the investment per home connected. The investment per home passed for an alternative operator indicates significant cost reductions when a co-investment scheme is used. On the other hand, the results show that when the incumbent’s market share is equal or higher than the total market share of all the alternative operators that share the network infrastructure, the investment per home connected for an alternative operator is higher than that for the incumbent operator. Moreover, to be cost competitive with the incumbent
operator, the necessary market share that each alternative operator should achieve is much lower than that of the incumbent operator.

Several network operators have been deploying Quality of Service (QoS) techniques that help impro... more Several network operators have been deploying Quality of Service (QoS) techniques that help improve customer satisfaction and can have an impact on the cost of telecommunications services. As Long
-Run Incremental Cost (LRIC) models are used in various jurisdictions to derive the cost of regulated services, a question that needs to be
addressed is how QoS concepts can be included in an LRIC model. This article pursues two goals. First, it describes the main QoS techniques and strategies that could be taken into account in a cost model. Second, it discusses the impact of QoS concepts on an LRIC
model. The article shows that the introduction of QoS concepts into a cost model involves a critical review of the following parameters:
cost drivers, cost of network elements, traffic supported by network elements, and usage factors.

Purpose: – This paper aims to describe the effect of VoIP network architectures on the cost mode... more Purpose:
– This paper aims to describe the effect of VoIP network architectures on the cost modelling of
termination rates of VoIP services.

Design/methodology/approach:
– The study investigates and organises the arguments available in the technical and regulatory field related to VoIP networks and services in order to ascertain the possible impact of VoIP techniques, the provisioning of voice features in VoIP networks, and network interconnection issues on the cost of regulated VoIP services.

Findings:
– The information and analysis reveals how the provision of VoIP services is related to a number of issues that will have an effect on the cost of VoIP termination rates. In particular, the study analyses the impact on a cost model of the components of a VoIP network architecture, the usage factor of network elements, and the traffic volume generated by VoIP applications.

Research limitations/implications:
– The issues described in the article can be used in elaborating a cost model for termination rates in VoIP networks. For the present study, no cost model was built, and therefore no quantitative estimations were made of the specific impact of every cost parameter on the termination rates.

Practical implications:
– The findings of this study can be used by policy makers, voice operators, and researchers.

Originality/value:
– Most studies of VoIP that are available in the literature address, on the one hand, the costs of corporate VoIP networks and, on the other, the regulation of VoIP services. This article, however,
presents a comprehensive study of the most relevant features of VoIP network architectures that should be considered when determining regulated termination rates.

Countries in Latin America have lagged behind much of the world in telephone lines, but they have... more Countries in Latin America have lagged behind much of the world in telephone lines, but they have made up this gap through cellular networks. The limited wired infrastructure means that broadband access will more likely be achieved through wireless technology.
In this paper, we argue that Latin America will experience a patchwork pattern of adoption where segments of society will have state
of the art broadband access while many segments will be left behind without connectivity. We test this hypothesis through a simulation developed using iThink® and show how 3G cellular and WiFi access could evolve in Latin America. Data cellular networks will have a slower take-up rate because of the high costs of the handset (as well as access fees); while WiFi, although imperfect, will experience faster growth. The patchwork adoption framework argues that socioeconomic indicators affect the way technologies are diffused. We present data on these indicators for four countries: Brazil, Chile,
Mexico and Peru.

Telecommunications Policy

5G networks are envisioned to provide consumers and industry with improved transmission performan... more 5G networks are envisioned to provide consumers and industry with improved transmission performance and advanced communication possibilities. To deliver on this promise of ushering in faster downloads and lower latency, mobile network operators are called upon for substantial investment in network infrastructure. Investors and operators need a clear 5G business case before making such investment. So far, very little research has been published on the topic of the 5G business case. This article studies the impact of different elements driving the business case of a 5G network. The study was performed within 3 boroughs of central London, UK, for the period 2020-2030. 5G-related costs and revenues were calculated to derive the business case. The results show that the business case for a 5G network providing mobile broadband services alone is positive over the time period 2020-2030 but has some risk in the later years of this time period. The business case is also particularly sensitive to assumptions on the revenue uplift and the rate of traffic growth which are inherently challenging to forecast. The sensitivity analysis shows that the return on investment becomes negative if both traffic and costs are significantly higher and revenues increase more slowly than our baseline forecasts. Network sharing helps to substantially improve the business case. Further research is needed to understand the business case on a regional or nationwide basis, and for a network that provides additional services beyond broadband.

This article examines the cost implications of a network-sharing scheme for different fiber to th... more This article examines the cost implications of a network-sharing scheme for different fiber to the home/passive optical network (FTTH/PON) architectures. Varied metrics are employed
to understand the effect of a network-sharing arrangement on costs. The results show that for the majority of cases studied the cost per home connected and the payback period increase when employing a network-sharing scheme, but the initial investment is strongly
reduced. The reuse of existing passive infrastructure does not bring any cost advantage in comparison to the stand-alone scenario, but it helps to reduce the total cost per home connected.

Due to the high costs associated with the deployment of the passive infrastructure of FTTH networ... more Due to the high costs associated with the deployment of the passive infrastructure of FTTH networks, a few alternative operators have pon
dered the possibility of making co-investments based on a network sharing model. The purpose of this article is to explore economic aspects of a co-investment scheme for present and future FTTH/PON architectures. The article describes the cost reductions that can
be achieved when a co-investment scheme is used, as well as the relationship between market shares and the cost per home connected. A cost model was employed to calculate the investment per home passed and the investment per home connected. The investment per home passed for an alternative operator indicates significant cost reductions when a co-investment scheme is used. On the other hand, the results show that when the incumbent’s market share is equal or higher than the total market share of all the alternative operators that share the network infrastructure, the investment per home connected for an alternative operator is higher than that for the incumbent operator. Moreover, to be cost competitive with the incumbent
operator, the necessary market share that each alternative operator should achieve is much lower than that of the incumbent operator.

Several network operators have been deploying Quality of Service (QoS) techniques that help impro... more Several network operators have been deploying Quality of Service (QoS) techniques that help improve customer satisfaction and can have an impact on the cost of telecommunications services. As Long
-Run Incremental Cost (LRIC) models are used in various jurisdictions to derive the cost of regulated services, a question that needs to be
addressed is how QoS concepts can be included in an LRIC model. This article pursues two goals. First, it describes the main QoS techniques and strategies that could be taken into account in a cost model. Second, it discusses the impact of QoS concepts on an LRIC
model. The article shows that the introduction of QoS concepts into a cost model involves a critical review of the following parameters:
cost drivers, cost of network elements, traffic supported by network elements, and usage factors.

Purpose: – This paper aims to describe the effect of VoIP network architectures on the cost mode... more Purpose:
– This paper aims to describe the effect of VoIP network architectures on the cost modelling of
termination rates of VoIP services.

Design/methodology/approach:
– The study investigates and organises the arguments available in the technical and regulatory field related to VoIP networks and services in order to ascertain the possible impact of VoIP techniques, the provisioning of voice features in VoIP networks, and network interconnection issues on the cost of regulated VoIP services.

Findings:
– The information and analysis reveals how the provision of VoIP services is related to a number of issues that will have an effect on the cost of VoIP termination rates. In particular, the study analyses the impact on a cost model of the components of a VoIP network architecture, the usage factor of network elements, and the traffic volume generated by VoIP applications.

Research limitations/implications:
– The issues described in the article can be used in elaborating a cost model for termination rates in VoIP networks. For the present study, no cost model was built, and therefore no quantitative estimations were made of the specific impact of every cost parameter on the termination rates.

Practical implications:
– The findings of this study can be used by policy makers, voice operators, and researchers.

Originality/value:
– Most studies of VoIP that are available in the literature address, on the one hand, the costs of corporate VoIP networks and, on the other, the regulation of VoIP services. This article, however,
presents a comprehensive study of the most relevant features of VoIP network architectures that should be considered when determining regulated termination rates.

Countries in Latin America have lagged behind much of the world in telephone lines, but they have... more Countries in Latin America have lagged behind much of the world in telephone lines, but they have made up this gap through cellular networks. The limited wired infrastructure means that broadband access will more likely be achieved through wireless technology.
In this paper, we argue that Latin America will experience a patchwork pattern of adoption where segments of society will have state
of the art broadband access while many segments will be left behind without connectivity. We test this hypothesis through a simulation developed using iThink® and show how 3G cellular and WiFi access could evolve in Latin America. Data cellular networks will have a slower take-up rate because of the high costs of the handset (as well as access fees); while WiFi, although imperfect, will experience faster growth. The patchwork adoption framework argues that socioeconomic indicators affect the way technologies are diffused. We present data on these indicators for four countries: Brazil, Chile,
Mexico and Peru.