three layers of the broadband telecom- munications business ecosystem shown in Figure 2.6, the dynamics for businesses across the layers are quite different. This is mainly due to the required initial investment as well as the potential market size and demand. Broadband Telecommunications Technologies and Management Demand for services Service Network design design Operational Capital Revenue expenditure expenditure (OPEX) (CAPEX) Financial metrics Figure 2.8 Cash flow analysis for a broadband telecommunications business The infrastructure layer business is characterised by significant fixed-cost CAPEX investment in network equipment and roll-out. Often the private sector is incapable of such large investment and therefore it is left to the government sector to cover the cost: NBN Co. is a very good example. For efficiency reasons, only a few players may compete at this layer, leading to monopoly or oligopoly business character. As a result the revenue (demand) side can be estimated with high accuracy. In contrast, the retail layer players do not require large initial investments. Their main cost is in OPEX: network operation and maintenance, customer acquisition and customer service. Naturally a company's revenues are a factor of the number of subscribers which it serves as well as the number of competitors in the market. Similar dynamics may also exist with companies active at the content and service layer. However here network dynamics also apply: there is a tendency for concentration when a small number of players hold a lion's share of the market. Dominant players such as Google, Facebook and YouTube, which have significant share of their respective markets are good examples. Their market leading power can influence retail players to ensure high quality ser- vice delivery, whereas smaller players may not be able to enjoy the same priority. This can lead to regulatory oversight requirement. Another feature of broadband telecommunications business is vertical integration across the layers, where a company is a