Drivers and barriers for potential city network deployment
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1 Drivers and barriers for potential city network deployment Jan Van Ooteghem, Sofie Verbrugge COST605 Final workshop, Budapest, September 22 nd, Drivers and barriers 2
2 Telecom is the next utility Access for everyone Synchronize Cooperate Ways to reduce and share costs 3 Municipalities have the key to success Simplify regulation Have a future proof plan (In)direct benefits for the city 4
3 Open access is the way to competition Separate infrastructure Stimulate innovation New services 5 City networks FTTH networks Wireless networks 6
4 How can the business case be improved? 7 Improving the business case requires solid business modeling what is done? business roles by whom? business actors drivers and barriers? business models what can we really do? indicate optimizations to the business case 8
5 Elementary business roles backbone network parts access building home deployment provisioning pre-registration (1) (2) provisioning lateron network lifecycle phases operations 9 Different types of business actors Traditional players New players 10
6 Different types of business actors Application service oriented actors Network oriented actors 11 Mapping network oriented actors to roles helps to define them unambiguously home network parts building access backbone deployment provisioning pre-registration provisioning lateron operations housing company (private) municipal infrastructure provider telco/ cable operator (public) municipal infrastructure provider network lifecycle phases 12
7 Mapping service oriented actors to roles helps to define them unambiguously network parts home building access Application and content service provider Customer in case of DIY installation Internet service provider backbone deployment provisioning pre-registration provisioning lateron network lifecycle phases operations 13 Business models indicate where competition is possible network parts home building access Traditional incumbent Co-opetition above physical layer Open access backbone deployment provisioning pre-registration provisioning lateron network lifecycle phases operations 14
8 Elementary business roles Site provis. Licensing Repair Content Maintenance Advertising Netw. Rollout Netw. Operations Service provis. Customer Netw. Equip. Netw. Planning Netw. Monitoring Sales & Billing Internet Conn. Backhaul Conn. Helpdesk 15 Roles and actors for a wireless network Local Government National Regulator Network Operator Content Provider Site provis. Licensing Repair Content Maintenance Advertising Customer Netw. Rollout Netw. Operations Service provis. Customer Vendor Netw. Equip. Netw. Planning ISP Netw. Monitoring Sales & Billing Internet Conn. Backhaul Conn. Helpdesk 16
9 Improving the business case by indicating what the different actors can do 17 Improving the business case Step I Connect the Best Customers Step II Reduce the Installation Costs Step III Control the Operational Costs 18
10 Optimize the rollout strategy 1 Clustering 2 Costs Optimal Rollout Strategy 3 Revenues 19 Large Benefits When Using Geomarketing Geomarketing All at once 20
11 Influence of Geo-marketing Potential Profitability Ranking Improving the business case Step I Connect the Best Customers Step II Reduce the Installation Costs Step III Control the Operational Costs 22
12 Optimize the Installation Path 23 Optimize the Installation Method Fully-buried + - Robust invisible Expensive road works Fiber blowing/pulling Aboveground + - Cheap & Install if used Ducts available + - Fast Cheap Vulnerable Regulations 24
13 Cooperating with other Infrastructures 60 cm 80 cm 100 cm Sewage Electricity Water Water Electricity Telecom Telecom Flexibility points 25 Towards a joint utility network rollout Biggest savings on digging and installation costs Up to 50% of these costs can be shared Cost per house passed SAC (fiber) FAC (Electricity/fiber) Bank Loose pavement Asphalt FAC (Electricity/fiber/gas) 26
14 Improving the business case Step I Connect the Best Customers Step II Reduce the Installation Costs Step III Control the Operational Costs 27 Operating the Infrastructures Independently 28
15 Operating the Infrastructures Jointly 29 Conclusions 30
16 Improving the business case for potential city network deployments..requires solid business modeling Business roles Business actors Business models Improvements business case Step I Connect the Best Customers Step II Reduce the Installation Costs Step III Control the Operational Costs 31 Publications Mathieu Tahon, Bart Lannoo, Jan Van Ooteghem, Koen Casier, Sofie Verbrugge, Didier Colle, Mario Pickavet, Piet Demeester, Municipal support of wireless access network rollout: a game theoretic approach, Telecommunication Policy, Special Issue: Public support for the deployment of next generation access networks: why, when, how Koen Casier, Sofie Verbrugge, Bart Lannoo, Jan Van Ooteghem, Piet Demeester, Improving the FTTH Business Case - Benefits of an Holistic Approach, The Journal of the Institute of Telecommunications Professionals, Vol K. Casier, B. Lannoo, J. Van Ooteghem, S. Verbrugge, D. Colle, M. Pickavet, P. Demeester, Game-Theoretic Optimization of a Fiber-to-the-Home Municipality Network Rollout, Journal of Optical Communications and Networking, Vol. 1 Issue 1, pp , June 2009 Jan Van Ooteghem, Bart Lannoo, Koen Casier, Sofie Verbrugge, Emmeric Tanghe, Wout Joseph, Didier Colle, Luc Martens, Mario Pickavet, Ingrid Moerman, Piet Demeester, Municipalities as a Driver for Wireless Broadband Access, Wireless Personal Communications, Vol 49 (3), pp , May
17 Goal: spreading knowledge from existing fiber network initiatives towards different players involved in potential future deployments. Topics: revenues, indirect effects, potential synergies in deployment and operations, suitable business models. Full day program: keynote (Benoit Felten), 3 sessions, panel discussion 33 Thanks for the Attention.. Any Questions? Jan Van Ooteghem, Sofie Verbrugge Jan.vanooteghem@intec.ugent.be sofie.verbrugge@intec.ugent.be 34
Drivers and barriers for potential city network deployment Jan Van Ooteghem, Sofie Verbrugge
Drivers and barriers for potential city network deployment Jan Van Ooteghem, Sofie Verbrugge COST605 Final workshop, Budapest, September 22 nd, 2011 1 Drivers and barriers 2 Telecom is the next utility
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