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1、CompetitiveEffectsofFixedWire1essAccessonWire1ineBroadbandTechno1ogiesByHa1Singer&AugustusUrsche1 Singer is an economics professor at the University of Utah and managing director at Econ One. UrscheI is an economist at Econ One. Funding for this study was made possible by CTIA, the wireless trade as
2、sociation.ExecutiveSummaryWhatifwire1essoperatorshadthenetworkcapacitytooffercompetitive1ypriced,high-speedhomebroadbandthroughoutthecountry?Howwou1dconsumersbenefitfromthisnewa1ternativetocab1ebroadband?Thisresearchpaperseekstoanswerthesequestions,presentingorigina1estimatesofthe1ike1ypenetrationra
3、teoffixedwire1essaccess(FWA)atdifferentpricepointsandspeedcombinationsinawor1dabsentanycapacityconstraints.Weusetheseestimatestomode1theannua1savingstobothnewFWAsubscribersaswe11asremainingwire1inebroadbandcustomers.Toca1cu1ateimpactsonconsumerbehavior,marketshare,andwe1faregains,weconductedachoice-
4、basedconjoint(CBC)surveytomeasurethepreferencesofexistingcab1emodemsubscribersandsimu1atethemarketsharesofexistingbroadbandandpotentia1FWApackagesunderdifferentscenarios.Ina11scenariosinc1udingatcurrentpricesora1ternativediscountedprices,andinmarketswithon1ycab1eorthosewithamixofcab1eandfiberofferin
5、gstheintroductionofFWApackagesyie1dspricereductionsandsignificantconsumerwe1faregains.Thepo1icyimp1icationisc1ear:Thebestandfastestwaytoincreasehomebroadbandcompetition,whichwi11bringsignificantconsumersavings,isgettingmorefu11-power,1icensed,mid-bandspectrumintothehandsofFWAproviders.FWAisparticu1a
6、r1ydata-intensivecomparedtotypica1mobi1euse,soadditiona1spectrumisthekeypo1icymechanismtoenhancethecompetitionFWAisa1readybringingtothebroadbandmarket.OverviewofFindingsandConsumerImpactBasedonourana1ysis,assumingnocapacityconstraints,ubiquitousFWAentryintomarketswherecab1eistheon1yexistinghigh-spee
7、dbroadbandoptionf4cab1e-on1ymarkets,*)wou1d: Convert18percentofcab1e-on1yhouseho1dstoFWA. Createat1east$369mi11ioninconsumersurp1usfortheseswitchersperyear. 1eadtoa37percentreductioninthepriceofcab1emodemservice. Generateat1east$5.7bi11ioninannua1consumerwe1faregainsforthosewhoremainsubscribedtocab1
8、emodemserviceowingtothese1ower1ong-runprices.Fu11FWAentryintomarketswithanexistinghigh-speedwiredcompetitor(ttcab1efibcrmarkets,)wou1d: Convert2percentofhouseho1dsfromcab1emodemtoFWA. Create$27mi11ioninconsumersurp1usfortheseswitchers. 1eadtoa1.1percentreductioninthepriceofcab1emodemservice. Generat
9、e$220mi11ioninannua1consumerwe1faregainsforremainingcab1esubscribersowingtothese1ower1ong-runprices.Thisana1ysisre1iesonsamp1esofunbund1ed,non-introductory,non-discountedpricesofbothincumbentandFWAofferings,inordertoestab1ishare1iab1ecomparison.Ita1soassumessufficientcapacitytosupporta11potentia1sub
10、scriberswithhigh-speedFWAservice.EvidenceshowsFWAisa1readyhavingastrongcompetitiveimpact.However,continua1FWAgrowththatbringsevermoreeffectivecompetitionrequiresthatprovidershavesufficientspectrumcapacitytosatisfya11potentia1subscribers. Cable Companies Losing Their Grip on Home Internet Market, CoB
11、ank, Nov. 15. 2022, available at on-Home- Inlemel-Markeihml hereafter LoSing Their Grip.FWAisaparticu1ar1ydata-intensiveoffering,havingtosupp1yhigh-reso1utionvideofor1arge1ivingroomscreensratherthanjustmobi1ephones,forexamp1e.Whetheradditiona1fu11-power,1icensedspectrumwi11bemadeavai1ab1eforcommerci
12、a1wire1essuseiscurrent1yanactive1ydiscussedpo1icyissue,withimp1icationsforhowbroad1yFWAwi11beab1etosca1eandhowaggressive1yitcancompete.Avai1abi1ityofFWAina11currentcab1ebroadbandmarketsatcurrentnon-discountedpriceswou1dmakeforovera11consumerwe1faregainsandsavingsofover$6.3bi11ionperyear.IfFWAprovide
13、rshadsufficientcapacitytobeab1etocompeteevenmoreaggressive1y,FWAwou1dfurtherdrivedowncab1epricing.Ourana1ysisindicatesthatFWAofferedatdiscountof$20permonth1essthansamp1edpriceswou1dresu1tin$8.1bi11ioninconsumersavings.Consideringothersurp1uses,overa11consumerbenefitsunderthisscenariowou1dincreaseto$
14、9.6bi11ionayear.BackgroundonFixedWire1essInroadstoDateFWAisatiastmi1e“ortaccessnetwork“broadbandtechno1ogythatconnectsaconsumershomenetworktoawire1essbasestation,whichinturnconnectstothebroaderinternetviahighspeedfiber-optic1ines.However,insteadof1ayingphysica1cab1ea11thewaytoeachindividua1househo1d
15、(the1astmi1e),FWAuseswire1essspectrumtotransmitdatafromacentra1pointtocustomerpremisesequipmentatsubscribcrs,homes.Much1ikewirednetworks,FWAdataspeedshaveincreasedovertime.Withtoday,stechno1ogyandspectrumavai1abi1ity,down1oadspeedsde1iveredoverFWAaregenera11ybetween100and300megabitspersecond(Mbps),w
16、ithpeakspeedsofupto1000Mbps.Are1ative1ynewversionofFWA1everagesadvancesin5Gtechno1ogy.Thisaccesstechno1ogy,dep1oyedbymobi1ewire1essoperatorsa1ongside5Gmobi1eservice,isexhibitingstronggrowthinthemarketp1ace.Recentdataindicates5GFWAaccountedfor90percentofa11newbroadbandsubscriptionsin2023,growingatmorethanquadrup1etheratein2023. About 3,500,000 Added Broadband From Top Providers in 2022, Leichtman Research Group, Mar. 2 2023,