Designing a Competitive Mechanism for the Broadband Wireless Industry --- Introduction of "Extended Market Mechanism (EMM)" and Vertical Separation of the Industry Operation

2018 Fiscal Year Final Research Report

• Project/Area Number: 16K03564
• Research Category: Grant-in-Aid for Scientific Research (C)
• Allocation Type: Multi-year Fund
• Section: 一般
• Research Field: Economic theory
• Research Institution: International University of Japan
• Principal Investigator: ONIKI Hajime 国際大学, GLOCOM, 研究員(移行) (40107107)
• Project Period (FY): 2016-04-01 – 2019-03-31
• Keywords: 経済理論 / ミクロ経済学 / 産業組織 / 第5世代通信 / 上下分離 / 協調寡占市場への競争導入 / 新規参入の促進 / 自然独占への対処

Outline of Final Research Achievements

The next-generation mobile communication (the fifth generation, 5G) will use the small cell for base stations. Thus, if incumbent 4G operators deployed 5G services, there would be duplicated investment in base stations, turning out with a waste of resources. This is a case of natural monopoly.
The objective of this project is to propose a scheme to cope with this problem; we introduce vertical separation of the 5G operation into upper and lower parts, each to be regulated by a public entity (regulation body, RB). In this scheme, the provider of the upper part, communications provider (CP), competitively supplies the Internet and other services to consumers, while the one of the lower part, access provider (AP), supplies wireless access services to CPs and consumers with a provision of local monopoly. The work discusses business rules to be given to CPs and APs. Promoting competition and avoiding evils of (natural) monopoly are the objectives of this scheme.

Free Research Field

経済学（ミクロ経済理論）

Academic Significance and Societal Importance of the Research Achievements

自然独占問題については、通常産業の公営化あるいは直接（価格）規制によって対応する。これに対し本研究では、事業者に行動選択の余地を残しつつ長期的に独占の弊害を避けるための具体的な経済メカニズムを提案したこと。