The successful introduction of Advanced Communication Services (ACSs) depends on reducing the uncertainties surrounding the investment decisions of all actors involved. A systematic enquiry into the fundamental determinants, the potential demand, and strategic interdependencies will reduce these uncertainties. In this context, URSA:
- provides definitions of operational requirements for user services organized in a typology of generic applications.
- develops an integrated approach to the economic evaluation of the demand for ACS and the interdependencies involved in its introduction.
- attempts to identify factors contributing to the successful introduction of advanced telecommunications applications.
The main objective of the research was to aid the successful introduction of advanced communication services by enquiring into the fundamental determinants, the demand potential and the strategic interdependencies between investors.
Specific aims were to provide:
definitions of operational requirements for user services organized in a topology of generic applications;
develop an integrated approach to the economic evaluation of both the demand for advanced communications and of the strategic interdependencies between the actors involved;
identify factors contributing to the successful introduction of advanced telecommunications applications.
Key issues in the research include:
a contribution to service definition;
technoeconomic analysis of user applications;
forecasting of demand potentials at national and regional level;
analysis of the interdependence of investment decisions of demand and supply;
evaluation of advanced communications introduction scenarios and recommendations.
Conrete guidelines have been produced for regulators, network operators, users and equipment manufacturers for the successful introduction of advanced communication services (ACS). Contribution has been made to the introduction of ACSs by reducing uncertainties surrounding the investment decisions of various actors, as well as direct contribution to common functional specifications (CFS).
Service Definition: The project develops and applies analytical procedures to link the twin concepts of the Generic User Service (as developed by URM R1077) and the Generic Application. It identifies and characterizes candidate services in functional terms as an input to the CFS Groups concerned with Service Definition, and for techno-economic modelling.
Techno-Economic Analysis:Economic analysis is carried out at three levels:
- the individual organisation (micro-economic level): sector related opportunities are identified by case studies on costs and benefits as well as on the advantages of ACS applications for user companies. The relevance of these sector opportunities will be tested over a wide range of countries and company characteristics in semi-structured interviews, to identify which economic and organizational factors drive or inhibit demand in various sectors.
- the national or regional economy: the demand potential of the various services/applications in different European countries and regions is evaluated by macro-economic demand forecasting. This approach relates the evolution of total demand for ACS in EC countries and regions to macro-economic variables, while taking into account the results on the economic behaviour of individual organizations (e.g. price sensitivity, critical mass, etc.)
- the strategic interdependencies between the demand and supply side: The evolution of the market for ACS depends essentially on interrelated decision processes of different actors who have to interact while introducing ACS. These include network operators, equipment manufacturers, service providers, regulatory bodies and users. The strategic options for market evolution of this interdependence is investigated by means of budget cross-flow analysis.
Guidelines for introduction strategies: The integration of results from the service definition and techno-economic evaluation workpackages forms the basis for evaluation of introduction scenarios.
- Contribution to service definition.
- Techno-economic analysis of user applications.
- Forecast of demand at national and regional levels.
- Analysis of interdependence of investment decisions of demand and supply sides.
- Evaluation of ACS introduction scenarios and recommendations.
URSA contributes to the successful introduction of ACSs by reducing uncertainties surrounding the investment decisions of various actors. The project contributes directly to the Common Functional Specifications Group concerned with service definition and reveals the economic conditions for a successful introduction of advanced communications.
Based on economic impact analysis of user applications across economic sectors, forecasts of demand potentials across EC countries and regions, and analysis of interdependence between actors on both the demand and supply sides, it provides guidelines for the successful introduction of ACS.
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CB5 8BA Cambridge
GU1 3DP Guildford