SPC Network Telecoms strategy, public policy and economics consultants

 

Case studies

SPC Network has been privileged to work with many of the leading names in the communications sector on some prestigious projects.

NGN Interconnection

The development of Next Generation Networks raises new questions for communications providers and regulators. In particular, the economic model of interconnection may be fundamentally different to that in place for current networks. Important questions such as which party to a communications causes costs to be incurred and which party benefits most need to be addressed to ensure efficient investment takes place. NGNuk, the industry body representing NGN stakeholders in the UK, asked SPC Network to investigate these critical questions and prepare a published paper and presentation.

“We are extremely pleased with the paper SPC Network has prepared for us. Working with the NGNuk membership, they have brought a thorough understanding of the economics of electronic communications combined with practical and pragmatic approach to NGN interconnection.”
— NGNuk

Telecommunications Regulation in Small Economies

Small economies often import regulation from larger countries, but is this the right approach given the special economic conditions of small countries? SPC Network, in a project supported by Cable & Wireless, examined what form of regulation is proportionate for small economies. The project involved a review of the existing literature on competition policy in small economies and a special survey to establish the issues and appropriate policy responses. We proposed a seven point regulatory agenda specially designed for small countries.

"SPC Network produced a rigorous and independent assessment of the unique challenges of small economies which they were able to illustrate with empirical evidence from a diverse group of countries. Their paper is an excellent contribution to the current debate in small countries."
— Cable & Wireless.

Next Generation Access Network

Land Securities, a FTSE 100 property development company, is building an 11,000 home, 750,000 square metre commercial space, community at Kent Thameside, SE England, which it expects to provide with a fibre network. SPC Network has provided Land Securities with regulatory advice throughout 2005 on issues ranging from universal service to Ofcom's consultation on high speed broadband access.

"We have found SPC Network's support very useful. They have been able to explain the complexities of UK and EU regulation to us, and have helped us to develop Ofcom's understanding of the opportunity that Kent Thameside presents so that it is considered by them in their regulatory decision making."
— Land Securities

ECTA Regulatory Scorecard 2005

SPC Network worked closely with ECTA and Jones Day to develop the 2005 Regulatory Scorecard comparing the regulatory environment in 16 EU Member States. The project analysed the public policy environment using 99 criteria to measure the effectiveness of regulation at promoting entry and investment in telecommunications markets. An econometric analysis of regulatory effectiveness and investment in telecoms demonstrated a strong and positive link.

"SPC Network added significant value to the 2005 Regulatory Scorecard, through both their knowledge of regulatory and market developments and the analytical rigour they applied. We were very pleased with the contribution they made to this year's scorecard."
— ECTA

ECTA Investment Survey 2004

In early 2004, SPC Network was asked by ECTA to conduct a survey of new entrant telecommunications companies' capital expenditure plans for the period 2004 - 2006. In partnership with ECTA, SPC Network contacted all the leading entrants in Europe to develop a profile of where, when and what investments would be made. The survey also established the importance of effective, pro-entry regulation as a key determinant of investment location decisions.

Oftel Market Review Responses
Twelve of the UK’s leading competitive carriers retained SPC Network to co-ordinate their responses to Oftel’s market reviews on the full range of markets including narrowband, broadband and mobile.

"SPC Network had the difficult challenge not only of putting together responses across all markets, but also of managing the different expectations of twelve competing operators. They quickly got to grips with addressing all the issues, produced persuasive and well written responses and kept the group tightly focussed. All deadlines were met with good humour."
— Cable & Wireless

Norfolk Broadband
SPC Network partnered with Yale Consulting and Profundus Consulting to undertake a study of broadband supply and demand in Norfolk. SPC Network’s role involved understanding the existing supply side of the market and briefing the County Council on the regulations affecting their decisions.

Ofcom’s Inbox
SPC Network worked with ntl to prepare a paper for Ofcom setting out our view of what should be Ofcom’s priorities. The paper analysed the current market situation and looked at how the new regulator’s behaviour could support the further development of infrastructure based competition to meet the needs of both consumers and citizens. The paper formed the basis of a presentation by ntl at a Westminster Media Forum event: Oftel’s Inbox (18/11/03).

"SPC Network's understanding of current market conditions and the rigorously analytical approach they brought to the paper added significant weight to our own case for benefits of facilities based competition"
— ntl

Competition Complaint
A leading international network provider, facing discriminatory behaviour from an incumbent, employed SPC Network to support its case to the DG Competition. We analysed empirical data on customer switching behaviour following a price cut by the incumbent to demonstrate that our client’s and the incumbent’s products were in the same economic market: a claim disputed by the incumbent.

“We were impressed with the thorough way in which SPC Network analysed data to provide a robust argument which supported our case.”
— confidential client