Next generation networks techno-economic insights

Cost structure by network segment of next generation networks is similar to structure of old PSTN - Hierarchical cost structure. Important economies of scale derived from fixed costs in the access and in platforms needed to provide services. Economies of scope due to the convergence of backhaul and backbone networks: Network cost is shared among a larger number of services. It is a relevant factor in cost reduction, if stand-alone cost is calculated for voice services results resemble old PSTN costs. Negligible traffic of VoIP and videoconference (for the supposed demand) if compared to Internet, VoD & IPTV expected traffic. Incremental cost of VoIP and Videoconference is composed of network platforms to provide the services and software and applications in the customer premises