Challenges and incentives for the convergence of backbone and last mile of mobile and fixed line communication networks

The convergence of backbone networks is widely discussed under the name of next generation networks (NGNs). But the local loops such as the air interface of mobile networks and the last mile of fixed networks are still owned by single operators. Therefore they show an oligopolistic market structure which may prevent market-driven allocation and lead to high end-user prices. In this paper incentives are given for the convergence of communication networks. These arise from new engineering solutions. Their impact on the communication market is shown. Then technical solutions are exemplified and their benefits and drawbacks discussed.