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Open Networks - Business Models09
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Open Networks - Business Models09

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Business models to develop a universal network based on free technology

Business models to develop a universal network based on free technology

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  • 1. New business Models for Digital Inclusion, February'09 New Business Models for Digital Inclusion Benefits for extending the open Networks up to the last mile February 2.009
  • 2. guifi.net Evolution: From Community to Open Networks New business Models for Digital Inclusion, February'09 nodes Selected as 6.000 3th wave EU Living Lab Established a Foundation to Support the model 2.000 Premi Nacional de Telecomunicacions Actively explaining the model to NRA and officials 500 Provisioning applications “Comuns Sensefils” (Peer to peer agreements) 100 Network information and components known to all First inter-municipalities links Gurb/Vic/Sta. Eugènia de Berga <10 Spanish DGTel 2003 Follow-up EU Directives EU “Telecomm Package” Small wi-fi “communities” Small private networks 2.001 2.002 2.003 2.004 2.005 2.006 2.007 2.008 2.009
  • 3. eDivide vs eInclusion New business Models for Digital Inclusion, February'09 Fight eDivide does not ● necessarily means solve Inclusion eInclusion eInclusion can be kept low due ● several reasons, not only Exclusion because eDivide Classic ISP business model just – focuses on ARPU, therefore generates a risk of exclusion MIGHT BE INSUFFICIENT Divide Need for new models ●
  • 4. Classic Model New business Models for Digital Inclusion, February'09 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 Services Inclusion Funding/ Customers Franchiser Subsidies Fees Dealer Public Sector Exclusion Immigration Controlled Low Incomers Subcontracts Visitors/ non residents etc
  • 5. Old “Community” Model New business Models for Digital Inclusion, February'09 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” – Connectivity Inclusion Services Members Volunteers Fees/Donations Community / Funding/ Public Sector Cooperative / Subsidies Association Exclusion Non members
  • 6. Open & Neutral Model New business Models for Digital Inclusion, February'09 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 infrastructures Services Pubic Sector Enterprises Content Investments Se st ten s ve n ce rv ten nts C s tm In mt on ic t ts In Co rvi ve es en Se e Individuals
  • 7. Compare... New business Models for Digital Inclusion, February'09 Network type Economic Business model Stimulation for Fair benefits to basement providing services competition? Classic The telco itself Control over the Limited. Margin Trends to create corporate telco/ and the network (fees, ads...). oriented, more margin dominants. Need ISP subcontracted Maximize ARPU (how as less services/costs for regulation agents. Other much a customer can are only pay for...) customers. Public ISP Public Institution N/A or subsidy No or only by what's Limited or at the & the contracted. oriented required on the best, N/A Others are only contract. customers Open & Neutral All. Including Based on services, Complete, Service ALWAYS individuals, cost oriented levels provided by the professionals & users themselves or SME. service providers
  • 8. Challenges for Open Networks New business Models for Digital Inclusion, February'09 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”
  • 9. New business Models for Digital Inclusion, February'09