Wholesale-only as a Business and Competitive Model in Fibre Optic Expansion

The construction of fibre infrastructures requires high investments from expanding companies. Recently, there has been an increasing number of players in this business area that are focussing on the construction and operation of the new networks without marketing services to customers. We present different forms of wholesale-only, discuss their economic implications, look at the incentive system behind the business model and its competitive potential and categorise the wholesale-only providers active in the German market.