Estimating the value of lost telecoms connectivity

Sean Lyons, Edgar Morgenroth, Richard S.J. Tol

Research output: Contribution to JournalArticleAcademicpeer-review

Abstract

We describe a practical method for estimating the economic cost of outages in electronic communications networks, accommodating temporal, geographical and sectoral variations in incidence. The method is illustrated with two types of examples: a hypothetical outage of the main fixed line network operator in Ireland, and seven examples of outages affecting individual local exchanges in areas with concentrations of technology-intensive employment or dense residential population. The national fixed line outage has an estimated cost of €42-50 per household-day arising from effects on the productive and residential sectors, with possible further losses from effects on retail payments and high societal value facilities such as emergency services. Estimated quantifiable economic costs from outages affecting a single local exchange range from €370,000 to €1.1 million per day.

Original languageEnglish
Pages (from-to)40-51
Number of pages12
JournalElectronic Commerce Research and Applications
Volume12
Issue number1
DOIs
Publication statusPublished - 2013

Fingerprint

Outages
Emergency services
Costs
Economics
Telecommunication networks
Connectivity
Economic cost
Electronic communication
Retail payments
Operator
Communication networks
Ireland
Household

Keywords

  • Cost of outages
  • Economic analysis
  • Service continuity
  • Telecommunications
  • Value

Cite this

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Estimating the value of lost telecoms connectivity. / Lyons, Sean; Morgenroth, Edgar; Tol, Richard S.J.

In: Electronic Commerce Research and Applications, Vol. 12, No. 1, 2013, p. 40-51.

Research output: Contribution to JournalArticleAcademicpeer-review

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