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Packet Front Blandin Conference Presentation 11082007

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Tobey Johnson from Packetfront gave this presentation at the 2007 Blandin Broadband conerence in Minnesota: Considering Governance, Partnerships, Financing and Operations: A View from Sweden

Tobey Johnson from Packetfront gave this presentation at the 2007 Blandin Broadband conerence in Minnesota: Considering Governance, Partnerships, Financing and Operations: A View from Sweden

Published in: Economy & Finance, Technology

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  • 1. PacketFront @ Community Networks Tobey Johnson, Collaborative Solutions 11-8-2007 May 16, 2007
  • 2. Today’s discussion  PacketFront introduction  Community networks  Community networks and the Open Access rationale  Case study on successful approaches 2 May 16, Community Networks 2007
  • 3. Today’s discussion  PacketFront introduction  Community networks  Community networks and the Open Access rationale  Case study on successful approaches 3 May 16, Community Networks 2007
  • 4. About PacketFront  Leader in Open Access FTTH technology and business solutions  Founded in 2001 to address the challenges faced by early pioneers of FTTH  210+ employees  HQ in Stockholm, offices in  Denver, Utah, Amsterdam, Dubai, Oslo, Copenhagen, Vienna.  Focus on collaboration with business partners to create a comprehensive broadband strategy, to ensure our client’s networks are successful  Financial solutions  Service Provider strategies  Design/Build firms  Independent consultants 4 May 16, Community Networks 2007
  • 5. Global success  72 customers / FTTH operators  25 countries  Offering FTTH in 154 communities Finland Norway Sweden Latvia Netherlands Denmark Poland Ireland Austria Canada Hungary USA Croatia Mexico Japan Spain China Panama Malaysia Peru 5 May 16, Community Networks Chile Argentina Mali Namibia Dubai 2007
  • 6. Today’s discussion  PacketFront introduction  Community networks  Community networks and the Open Access rationale  Case study on successful approaches 6 May 16, Community Networks 2007
  • 7. Cities worldwide are increasingly getting involved in community network initiatives  FTTx infrastructure is considered an important driver of Local Economic Development (LED)  attract people and industry (improve tax base)  encourage local entrepreneurship  enable better and more efficient public services  improve quality of life for local citizens  Many communities are impatient with incumbent providers  slow to deploy FTTx (if any deployment at all)  limited coverage (tend to cherry pick)  expensive and money flows out of the community (no LED)  Cities are getting involved in community networks a number of ways  aggregate local demand (often surprisingly large)  directly or indirectly driving FTTx initiatives (PPP models) 7 May 16, Community Networks 2007
  • 8. A key challenge for city driven FTTx initiatives has been to find a business model that works  The traditional ‘monopoly’ model (infrastructure and services under one roof) falls short on several accounts.  FTTx infrastructure is a local and long-term business that fits well with city competencies (e.g. another utility)  services, on the other hand, requires a strong sales and marketing acumen that is not necessarily inline with municipal expertise (e.g. brand building, content rights, bundling packages, etc.)  ‘monopoly’ model creates barriers to local entrepreneurship and does little to improve public services.  increasingly, incumbents challenge cities’ rights through our legal system to use public funds to establish new ‘monopolies’.  Investing in dark fiber appears largely unsuccessful in driving LED.  fundamentally the model remains the same (network operator becomes new monopolist); limited effect on LED.  no focus on local service innovation or community involvement. 8 May 16, Community Networks 2007
  • 9. Open Access is the model of choice for a rapidly growing number of city driven FTTx initiatives  Open Access refers to a network with one network owner, and more than one service provider. Subscriber  subscribers are free to select any Service Network providers owner service from any service provider in real-time technical SP1 access  service providers deliver services in contracts $ $ $ parallel over the same pipe SP2 commercial  network owner and service providers contracts co-operate on the basis of technical SP3 and commercial contracts back portal bone  service providers maintain ownership of SP4 the customer relationship (billing and support)  network owner receives a share from all service generated revenues. Service Delivery 9 May 16, Community Networks 2007
  • 10. Cities can focus on local infrastructure while ensuring the investment meets the city‘s LED goals  The city’s role is limited to deploying and operating the network and to managing the ‘market-place’ where subscribers and 3rd party service providers meet.  relying on 3rd party service providers means the city will have access to services faster, at a limited up front cost and risk in terms of service development.  It is in the city’s best interest to bring as many service providers onto the network as possible.  possible service providers include local businesses and government institutions as well as incumbent providers.  encourages local entrepreneurship and offers an ideal platform for developing and bringing better and more efficient public services to market.  From a subscriber perspective open-access is unlike any other broadband experience.  get all broadband services via one connection while maintaining freedom of choice.  improve quality of life for local citizens. 10 May 16, Community Networks 2007
  • 11. A true open-access network is also attractive for service providers Service provider benefits from open-access  In an open-access network multiple High service providers ‘share the cost of the pipe’. CAPABILITIES REQUIRED TO COMPETE ON COST  can result in a significant cost advantage and risk mitigation  focus on their core competency of providing high quality of service and customer care Low CAPABILITIES REQUIRED High TO COMPETE ON DIFFERENTIATION 11 May 16, Community Networks 2007
  • 12. Today’s discussion  PacketFront introduction  Community networks  Community networks and the open-access rationale  Case study on successful approaches 12 May 16, Community Networks 2007
  • 13. MälarEnergi, Sweden Open Access network deployed by MälarEnergi in In deployment, Västerås, Sweden. Based on PacketFront’s now around 50,000 open-access solutions. residential customers and 5,000 business customers. Winner of The Corner Stone Award 2005 and Multi-provider business Cost efficient recognized as the quot;Most model: 29 external service operations with only 16 providers offering 103 Advanced FTTP Networkquot; full time employees services in the network. (4 within network by Broadband Properties management) Magazine 2 competing IPTV providers (ViaSat and EBITA positive and cash CanalDigital), multiple flow positive – has been providers of other successful since move services (including Services offered via FTTH, ADSL2+ to Open Access. Telia, Tele2). and wireless. 13 May 16, Community Networks 2007
  • 14. City driven FTTx initiatives need a business model that allows a focus on local infrastructure and innovation… …while still ensuring the FTTx investment meets the city‘s goals in terms of Local Economic Development and access to broadband services. The proven solution is Open Access… 15 May 16, Community Networks 2007
  • 15. Thank you! For more information go to: www.packetfront.com May 16, 2007 Tobey Johnson Tobey.Johnson@PacketFront.com

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