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The telecommunication industry is currently in the midst of a disruptive technological development. Next generation (fibre) networks (NGN) increase transmission data speeds from the current 16Mbit/s to more than 100Mbit/s. This enables new services such as HDTV, interactive gaming or video on demand. While the technology exists today, the timing and extent of actual investments depend on the access regulation for non-investors. This paper explores how different regulatory access regimes affect investments and social welfare. We find that the existing access regulation, where the investor bears the investment risk alone, induces too little investments to the detriment of consumers. In contrast, access regimes that distribute the investment risk among more or all telecoms firms stimulate investments and increase consumer surplus. The paper also explores how different forms of risk-sharing, in terms of participating firms and cost allocations, affect social welfare. The (simulation) results presented in this paper build on a game theoretical model.

This business brief addresses the questions of what coaching is and what coaches do, from the perspective of executive coaching as a professional service. The findings are based on a survey of executive coaches and corporate clients at the 1st ESMT Coaching Colloquium in 2009. When posed with the question what do you sell as a coach, executive coach responses highlighted: dedicated time, space and a safe environment, awareness, empathy and challenge, and a promise of a transformation opportunity. When corporate clients were posed with the question of what do you buy from a coach their responses highlighted: awareness and sparring partnership, dedicated time and space, and a happy internal customer. The theme of solutions was also highlighted, although views differed from that of the desire that executive coaches provide solutions, to that of the provision of a solution from an executive coach is undesireable and executive coaches should provide coachees assistance in finding own solutions. From the answers given and despite published definitions of what coaching is, it can be surmised that much confusion remains about what coaching actually is and what it is not.

The ongoing world financial crisis, now in phase two mainly affecting the loan books of banks, is forcing financial institutions to reflect or modify their business models. A review of the last full credit cycle shows opportunities to identify the relevant drivers of value that are measured in terms of both return on equity and risk. On this basis we analyzed the balance sheets and P&L accounts of about 65 European banking groups over the last cycle (2000 to 1H 2008). Five drivers define the long-term success of a bank's business model: the dynamics of growth, the asset mix, the size, the cost-to-income ratio and the relative market share compared to the banks top three country peers. As we show in detail, based on these five drivers managers are able to define their management agenda inside a consistent empirical framework. The key to success in defining a strategy is to knowing one's relative position within the competitive risk-return arena.

This study analyses the geographic integration of electricity wholesale markets with a focus on Germany and its neighbouring countries. We employ various indicators based on publically available data and find that electricity markets have become more integrated since the sector inquiry undertaken by the European Commission in the years preceeding 2006. However, European markets are not yet fully integrated. The results also suggest that stronger (and costly) integration towards certain countries may have only little or adverse effects on electricity wholesale prices in Germany. Finally, in the past, German electricity wholesale prices have appeared too low so as to trigger investments into new generation capacity. To that end prices do not appear inflated.