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May 16, 2007
PacketFront @ Community NetworksTobey Johnson, Collaborative Solutions
11-8-2007
2 May 16, 2007
Community Networks
Today’s discussion
PacketFront introduction
Community networks Community networks and the Open Access rationale Case study on successful approaches
3 May 16, 2007
Community Networks
Today’s discussion
PacketFront introduction
Community networks Community networks and the Open Access rationale Case study on successful approaches
4 May 16, 2007
Community Networks
About PacketFront
Leader in Open Access FTTH technology and business solutions
Founded in 2001 to address the challenges facedby early pioneers of FTTH
210+ employees
HQ in Stockholm, offices in Denver, Utah, Amsterdam, Dubai, Oslo, Copenhagen,
Vienna.
Focus on collaboration with business partners to create a comprehensive broadband strategy, to ensure our client’s networks are successful Financial solutions Service Provider strategies Design/Build firms Independent consultants
5 May 16, 2007
Community Networks
Global success
72 customers / FTTH operators 25 countries Offering FTTH in 154 communities
SwedenNorway
USA
Netherlands
Japan
Austria
Dubai
Denmark
Canada
Finland
Mexico
Ireland
Croatia
Latvia
Spain
Poland
Hungary
NamibiaMali
Peru
Chile Argentina
Panama
Malaysia
China
6 May 16, 2007
Community Networks
Today’s discussion
PacketFront introduction
Community networks Community networks and the Open Access rationale Case study on successful approaches
7 May 16, 2007
Community Networks
Cities worldwide are increasingly getting involved in community network initiatives
FTTx infrastructure is considered an important driver of Local Economic Development (LED)
attract people and industry (improve tax base) encourage local entrepreneurship enable better and more efficient public services improve quality of life for local citizens
Many communities are impatient with incumbent providers
slow to deploy FTTx (if any deployment at all) limited coverage (tend to cherry pick) expensive and money flows out of the community (no LED)
Cities are getting involved in community networks a number of ways
aggregate local demand (often surprisingly large) directly or indirectly driving FTTx initiatives (PPP models)
8 May 16, 2007
Community Networks
A key challenge for city driven FTTx initiatives has been to find a business model that works
The traditional ‘monopoly’ model (infrastructure and services under one roof) falls short on several accounts.
FTTx infrastructure is a local and long-term business that fits well with city competencies (e.g. another utility)
services, on the other hand, requires a strong sales and marketing acumen that is not necessarily inline with municipal expertise (e.g. brand building, content rights, bundling packages, etc.)
‘monopoly’ model creates barriers to local entrepreneurship and does little to improve public services.
increasingly, incumbents challenge cities’ rights through our legal system to use public funds to establish new ‘monopolies’.
Investing in dark fiber appears largely unsuccessful in driving LED.
fundamentally the model remains the same (network operator becomes new monopolist); limited effect on LED.
no focus on local service innovation or community involvement.
9 May 16, 2007
Community Networks
Open Access is the model of choice for a rapidly growing number of city driven FTTx initiatives
Open Access refers to a network with one network owner, and more than one service provider.
subscribers are free to select any service from any service provider in real-time
service providers deliver services in parallel over the same pipe
network owner and service providers co-operate on the basis of technical and commercial contracts
service providers maintain ownership of the customer relationship (billing and support)
network owner receives a share from all service generated revenues.
SP1
SP2
SP3
Serviceproviders
SP4
backbone
access
Networkowner
commercialcontracts
portal
technicalcontracts
$ $ $
Subscriber
Service Delivery
10 May 16, 2007
Community Networks
Cities can focus on local infrastructure while ensuring the investment meets the city‘s LED goals
The city’s role is limited to deploying and operating the network and to managing the ‘market-place’ where subscribers and 3rd party service providers meet.
relying on 3rd party service providers means the city will have access to services faster, at a limited up front cost and risk in terms of service development.
It is in the city’s best interest to bring as many service providers onto the network as possible.
possible service providers include local businesses and government institutions as well as incumbent providers.
encourages local entrepreneurship and offers an ideal platform for developing and bringing better and more efficient public services to market.
From a subscriber perspective open-access is unlike any other broadband experience.
get all broadband services via one connection while maintaining freedom of choice.
improve quality of life for local citizens.
11 May 16, 2007
Community Networks
A true open-access network is also attractive for service providers
In an open-access network multiple service providers ‘share the cost of the pipe’.
can result in a significant cost advantage and risk mitigation
focus on their core competency of providing high quality of service and customer care
CAPABILITIES REQUIRED TO COMPETE ON
DIFFERENTIATION
CA
PA
BIL
ITIE
S R
EQ
UIR
ED
T
O C
OM
PE
TE
ON
CO
ST
HighLow
High
Service provider benefits from open-access
12 May 16, 2007
Community Networks
Today’s discussion
PacketFront introduction
Community networks Community networks and the open-access rationale Case study on successful approaches
13 May 16, 2007
Community Networks
MälarEnergi, Sweden
Open Access network deployed by MälarEnergi in
Västerås, Sweden. In deployment,
now around 50,000 residential customers and
5,000 business customers.
Multi-provider business model: 29 external service
providers offering 103 services in the network.
Cost efficient operations with only
16 full time employees (4 within network
management)
Services offered via FTTH, ADSL2+ and wireless.
EBITA positive and cash flow positive – has been successful since move
to Open Access.
Based on PacketFront’s open-access solutions.
2 competing IPTV providers (ViaSat and CanalDigital), multiple
providers of other services (including
Telia, Tele2).
Winner of The Corner Stone Award 2005 and recognized as
the "Most Advanced FTTP Network" by
Broadband Properties Magazine
15 May 16, 2007
Community Networks
City driven FTTx initiatives need a business model that allows a focus on local infrastructure and innovation…
…while still ensuring the FTTx investment meets the city‘s goals in terms of Local Economic Development
and access to broadband services.
The proven solution is Open Access…
May 16, 2007
Thank you!
For more information go to:
www.packetfront.com
Tobey Johnson
Tobey.Johnson@PacketFront.com