COMMUNICA | Issue Four
The ‘Open Access’ model: Richard discusses a three layered ‘open access’ multi-layer model in his white
paper, as pictured in the below graphic.
SP
SERVICES
SP
SP
SP
ACTIVE
EQUIPMENT
PASSIVE
Vertically
integrated /
Traditional
model
(Wholesale) 2. Customer-facing services provided by
several service providers via an Open Access Portal.
(Retail).
This division of operations and services into
wholesale and retail levels has several advantages.
Connected to Open Access fibre networks
consumers benefit from choice, lower prices, better
service, more kinds of service and the relentless
pressure to improve the healthy competition that
fosters in a truly open market.
The fundamental advantage of this model is the
allocation of expenses (and therefore of risk) to the
levels at which they are most appropriately handled:
Local authorities are very good at building and
maintaining infrastructure with a useful life of many
decades (roads, pipes, fibre).
Network management is a distinct problem requiring
particular skills, complex equipment, software and
particular capital and operating expenses.
Security, stability and reliability are the key attributes
that affect risk in that arena.
Provision of services to residential and business
customers, compared with network management,
requires more focus in human capital, with a very
agile customer and brand focused organisation.
The multilayer service model lays the groundwork for
the creation of a pure open-access environment at
the service level.
In such an environment, customers can switch
providers without barriers instantly, try new
services as they are developed, and enjoy greater
transparency into the cost and quality of providers’
48 |
Fibre Owner
and Operator
combined
Passive Open Acce
offerings. Single SP
It also lowers the barriers to entry for new and local
service providers allowing real competition to take
place and rewards service providers that deliver
better services at lower prices.
In addition, there are no barriers to entry for
any provider that wants to offer new, innovative
services, thus accelerating innovation and economic
development.
The multilayer model also aligns the interests of all
parties; having more service providers increases
conversion of subscribers and thus revenues to be
shared between the network investors comprising
the retailer, network operator and the fibre owner.
Without doubt there are compelling reasons why
“We are at a
significant milestone
where we no longer
require the legacy of
copper wires of the
past”