Investment dimensions in a universal service perspective: next generation networks, alternative funding mechanisms and public‐private partnerships

Abstract

PurposeThis paper seeks to examine the investment dimensions of next generation networks from a universal service perspective in a European context. The question is how new network infrastructures for providing access for everyone to communication, information and entertainment services in the present and future information society will be funded.Design/methodology/approachThe paper starts by looking at the range of policy measures available for promoting broadband access. This is followed by an overview of existing and upcoming access network technologies. Before concluding, there is a section on alternative funding mechanisms, including a sub‐section on the potential of private public partnerships (PPP) in providing funding for broadband access infrastructures.FindingsAlthough there is nothing in principle hindering the development of universal service policies from those that include a specific service and its underlying network technology towards more general access, other policy measures are likely to become more important in practice for the fulfilment of the universal service goal. Wide diffusion and de facto universal service will, to a higher degree, have to rely on other measures: alternative funding mechanisms and a wider range of policy measures to expand broadband take‐up.Originality/valueThe value of the paper is in its combination of two issues often discussed separately: alternative funding mechanisms and universal access. Furthermore, the implications of NGN are examined.