Open Networks - Business Models09
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Transcript of Open Networks - Business Models09
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New business Models for Digital Inclusion, February'09
New Business Models for Digital InclusionBenefits for extending the open Networks up to the last mileFebruary 2.009
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New business Models for Digital Inclusion, February'09
guifi.net Evolution:From Community to Open Networks
2.0092.001 2.0052.003 2.0072.0022.001 2.004 2.006 2.008
Small wi-fi “communities”Small private networks
EU “Telecomm Package”
Spanish DGTel 2003Follow-up EU Directives
First inter-municipalities linksGurb/Vic/Sta. Eugènia de Berga
Provisioning applications“Comuns Sensefils” (Peer to peer agreements)Network information and components known to all
Established a Foundation toSupport the model
Premi Nacional de Telecomunicacions
Actively explaining the model to NRA and officials
100
6.000
2.000
500
nodes
<10
Selected as 3th wave EU Living Lab
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New business Models for Digital Inclusion, February'09
eDivide vs eInclusion
● Fight eDivide does not necessarily means solve eInclusion
● eInclusion can be kept low due several reasons, not only because eDivide
– Classic ISP business model just focuses on ARPU, therefore generates a risk of exclusion
MIGHT BE INSUFFICIENT● Need for new models
Incl
usio
n
Exclusion
Divide
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New business Models for Digital Inclusion, February'09
Public Sector
Classic Model● Funding traditional WISPs / ISPs
– Few players/limited business dissemination and competition
– Facilitates vendor & technology “lock-in”
– Flawed Business Model depending on Public subsidies, discourages service provision: Low effectiveness and not sustainable
– Static, centric & monopolistic, conflicts with other initiatives, in particular while using open spectrum
– Only to digital divide, misses digital inclusion
Single Operator
Franchiser
Dealer
CustomersFunding/Subsidies
Services
Fees
ImmigrationLow Incomers
Visitors/non residents
etc
Exclusion
Inclusion
Public SectorPublic Sector
Controlled Subcontracts
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New business Models for Digital Inclusion, February'09
Public Sector
Old “Community” Model● Single Community/Cooperative Centric
– Sustainability: Dependent on volunteering, public funding, donations or fees
– Requires membership, but looks also to digital inclusion
– Critical Mass: Difficult to meet requirements to scale
– If no clear agreements, investment uncertainty: If successful, faces a risk of privatization
– Few players, small ecosystem
– Trends to technology “lock-in”
Community / Cooperative /
Association
MembersVolunteers
Funding/Subsidies
Connectivity Services
Fees/Donations
Non members
Exclusion
Inclusion
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New business Models for Digital Inclusion, February'09
Open & Neutral Model● Single Community/Cooperative Centric
– Certainty: Based on clear peer to peer agreements open to everybody, participants retain ownership on their investments
– Symmetric & Dynamic: Many players in fair competition / same opportunities, stimulates new products and services. Complete and varied economic ecosystem, friendly to varied initiatives, territory & SMEs.
– Works both for digital divide and digital inclusion
– Complement: Build infrastructure available to others
– Able to scale / globalize
Open infrastructuresPubic Sector Enterprises
Individuals
Services
Content
Investments
ServicesContent
Investments
Servic
es
Conte
nt
Inve
stmen
ts
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New business Models for Digital Inclusion, February'09
Compare...
Network type Economic benefits to
Business model basement
Stimulation for providing services
Fair competition?
Classic corporate telco/ISP
The telco itself and the subcontracted agents. Other are only customers.
Control over the network (fees, ads...). Maximize ARPU (how much a customer can pay for...)
Limited. Margin oriented, more margin as less services/costs
Trends to create dominants. Need for regulation
Public ISP Public Institution & the contracted. Others are only customers
N/A or subsidy oriented
No or only by what's required on the contract.
Limited or at the best, N/A
Open & Neutral All. Including individuals, professionals & SME.
Based on services, cost oriented
Complete, Service levels provided by the users themselves or service providers
ALWAYS
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New business Models for Digital Inclusion, February'09
Challenges for Open Networks
● From “User” to “Participant”
– Enable everyone as capable for being not only a consumer or content provider, also become an infrastructure provider.
● Dissociate service provider from infrastructure ownership
● Keep the network open, understand openness requirements, not build more private networks
● Neutralize resistance
– Speculation pressure / Hypes / Corporate lobbies / acquired privileges / “Contamined” officials / Subsidy “culture”
● Keep growing, build success stories, technology shift to “homes with tails”
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New business Models for Digital Inclusion, February'09