Drivers and barriers for potential city network deployment Jan Van Ooteghem, Sofie Verbrugge
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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,
2 Drivers and barriers 2
3 Telecom is the next utility Access for everyone Synchronize Cooperate Ways to reduce and share costs 3
4 Municipalities have the key to success Simplify regulation Have a future proof plan (In)direct benefits for the city 4
5 Open access is the way to competition Separate infrastructure Stimulate innovation New services 5
6 City networks FTTH networks Wireless networks 6
7 How can the business case be improved? 7
8 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
9 b a c k b o n e network parts a c c e s s b u i l d i n g h o m e Elementary business roles deployment provisioning pre - registration (1) (2) provisioning lateron network lifecycle phases operations 9
10 Different types of business actors Traditional players New players 10
11 Different types of business actors Application service oriented actors Network oriented actors 11
12 b a c k b o n e network parts a c c e s s b u i l d i n g h o m e Mapping network oriented actors to roles helps to define them unambiguously housing company (private) municipal infrastructure provider (public) municipal infrastructure provider deployment provisioning pre - registration provisioning lateron network lifecycle phases operations telco/ cable operator 12
13 b a c k b o n e network parts a c c e s s b u i l d i n g h o m e Mapping service oriented actors to roles helps to define them unambiguously Application and content service provider Customer in case of DIY installation Internet service provider deployment provisioning pre - registration provisioning lateron network lifecycle phases operations 13
14 b a c k b o n e network parts a c c e s s b u i l d i n g h o m e Business models indicate where competition is possible Traditional incumbent Co-opetition above physical layer Open access deployment provisioning pre - registration provisioning lateron network lifecycle phases operations 14
15 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
16 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
17 Improving the business case by indicating what the different actors can do 17
18 Improving the business case Step I Connect the Best Customers Step II Reduce the Installation Costs Step III Control the Operational Costs 18
19 Optimize the rollout strategy 1 Clustering 2 Costs Optimal Rollout Strategy 3 Revenues 19
20 Outcome (Discounted M ) Large Benefits When Using Geomarketing Geomarketing All at once 20
21 Influence of Geo-marketing Potential Profitability Ranking
22 Improving the business case Step I Connect the Best Customers Step II Reduce the Installation Costs Step III Control the Operational Costs 22
23 Optimize the Installation Path 23
24 Optimize the Installation Method Fully-buried + - Robust invisible Expensive road works Fiber blowing/pulling Aboveground + Cheap & Install if used + Fast Cheap - Ducts available - Vulnerable Regulations 24
25 Cooperating with other Infrastructures 60 cm 80 cm 100 cm Sewage Electricity Water Water Electricity Telecom Telecom Flexibility points 25
26 Towards a joint utility network rollout Flexibility point Footpath Building Private domain Public domain 60 cm 80 cm 100 cm Telecom Drinking water Electricity Gas (low pressure) Cost per house passed Gas (med. pressure) Road 60 cm 50 cm 110 cm Biggest savings on digging and installation costs Bank Loose pavement Asphalt 150 Up to 50% of these costs can be shared SAC (fiber) FAC (Electricity/fiber) FAC (Electricity/fiber/gas) 26
27 Improving the business case Step I Connect the Best Customers Step II Reduce the Installation Costs Step III Control the Operational Costs 27
28 Diagnose Problem, Locate Failure Operating << Operations >> the Infrastructures Independently yes Joint repair Make Trouble Ticket << Administrative>> no Diagnose Problem, Locate Failure << Operations >> Open street/duct << Repair Team >> Paths in parallel Repair telecom << Repair team >> Close street/duct << Repair Team >> Close Trouble Ticket << Administrative>> Joint repair no Sequential paths yes Open street/duct << Repair Team >> Paths in Open street/duct parallel << Repair Team >> Repair gas << Repair team >>... Repair telecom Repair telecom << Repair team >> << Repair team >> Close street/duct << Repair Team >> Close street/duct << Repair Team >> Open street/duct << Repair Team >> Repair gas << Repair team gas >> << Repair team >> Close street/duct << Repair Team >> Sequential paths Open street/duct << Repair Team >> Repair telecom << Repair team >> Close street/duct << Repair Team >> 28
29 Operating the Infrastructures Jointly Make Trouble Ticket << Administrative>> Close Trouble Ticket << Administrative>> Diagnose Problem, Locate Failure << Operations >> Joint repair yes Open street/duct << Repair Team >> Close street/duct << Repair Team >> no Paths in parallel Repair telecom << Repair team >> Repair gas << Repair team >>... Sequential paths Open street/duct << Repair Team >> Repair telecom << Repair team >> Close street/duct << Repair Team >> 29
30 Conclusions 30
31 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
32 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
33 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
34 Thanks for the Attention.. Any Questions? Jan Van Ooteghem, Sofie Verbrugge 34
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