Broadband Business Opportunities for Utility Based Firms in the New Era: Modeling the Competition

After the deregulation of the telecommunications market, municipalities and utility-based firms which own physical resources are capable of entering in this market. This study focuses on the broadband business field and provides a model for analyzing the new perspectives for new investors in the field. It integrates real options and game theory and considers price and quantity competition for various stages of the business game in order to find the optimal business strategy. Both techniques are based on quantitative analysis, while the complicated broadband business field requires a multi-criteria analysis including also qualitative thinking. The various business factors are integrated into a single utility function using the analytic hierarch process. Finally, we discuss a real world case study in the specific business field.