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

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

15. 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

16. Thank you!
For more information go to:
www.packetfront.com
May 16, 2007
Tobey Johnson
Tobey.Johnson@PacketFront.com