A real options approach to decision making in broadband technology selection

Marco Araújo*, Love Ekenberg, João Confraria, Mats Danielson

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

1 Citation (Scopus)


The European Union has recently launched an ambitious plan to mitigate drastically, by 2025, the number of households lacking access to a 100 Mbps broadband connection through the subsidisation of the deployment of network infrastructure in rural areas. Decision makers such as governments and regulatory authorities therefore have to choose, among a pool of alternatives, a technology capable of delivering the required throughput on a large scale, based on a trade-off between the infrastructure costs and the subscribers' perceived utility for each alternative. Such a trade-off is not simple, since there is no straightforward manner to rank the subscribers' perceived utility against the network infrastructure cost. In this article, we propose a methodology based on real options, which outputs the value of each technology using multi-attribute value theory as an input, alongside the project's risk and its costs.
Original languageEnglish
Pages (from-to)184-210
Number of pages27
JournalInternational Journal of Multicriteria Decision Making
Issue number2
Publication statusPublished - 2019


  • 5G
  • Broadband
  • Convenience yield
  • DSL
  • Fibre to the cabinet
  • Fibre to the home
  • FTTC
  • FTTH
  • G.Fast
  • MAVT
  • MCDM
  • Multi-attribute value theory
  • Real options
  • Risk analysis


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