Single Wholesale Network for 5G: Are Investment Savings Achievable?

Abstract

The article assesses single wholesale network (SWN) model - concentration of access to key infrastructure facilities within one company - for developing 5G. The main argument in favor of SWN is the possible capex savings, which are highly relevant in Russia. But setting up SWN will require state regulation which implies additional costs. The article shows limitations for SWN’s efficiency presenting quantitative analysis of the consequences associated with the SWN’s incentives to inflate capex, regulation inefficiency, guaranteeing non-discriminatory access as well as additional costs to comply with state procurement rules. The methodology may be used for regulatory impact assessment that make the article especially valuable in analysis of state intervention.