First Mile Access Networks and Enabling Technologies

Case Study Distributed Pricing Versus Cumulative Pricing in a First Mile Network

We have illustrated in the previous section the merits of a self-sustained effort by an organizing body in a first mile area network. We can now build a financial business case for a first mile network. Because this exercise may seem trivial to begin with, we can compare two methods of business in the first mile, a cumulative pricing scheme and a service-based pricing scheme. We shall describe the two schemes briefly and then evaluate both of the schemes in a first mile network:

• Cumulative pricing scheme— Based on the approach in the previous section, we can see the qualitative benefits that arise when an organizing body creates a network infrastructure taking into ...