Create added value for telecommunications providers – new services vs. open access
The legislature provides for open access in state-funded expansion projects. This means that gigabit-capable connections should find their way to customers even faster and more effectively. But can Open Access actually represent an advantage for an expanding company, which provides the main part of the expansion investment? Could new services instead provide a better way to make a Telco offering more attractive for the end customer or to differentiate yourself from the competition?
Open Access in supported areas
As the workplace has moved to the living room at home, the demand for higher bandwidths has also increased. Remote workstations and video calls therefore require a stable data flow. There are increasingly numerous regional and national expansion companies that are increasingly concentrating on rural areas. However, the fact that supported areas are supposed to be opened to all providers according to the law poses challenges for companies. Open access requires either special platforms or appropriately set up interfaces.
Costs vs. added value of Open Access
The Interfaces and Processes working group has defined the S/PRI interface to make it easy to change providers for fiber optics. The clear definition of the interfaces by the working group enables clear and sensible network switching for everyone involved in the network, from the carrier to the suppliers of corresponding software solutions. The automated switching processes have made it much easier for customers to switch providers in recent years.
However, setting up an S/PRI interface requires financial outlay for the expanding company, which the carrier would like to quickly offset alongside its other investments (return on investment). Opening up one's own network to competitors is also viewed with caution, as open access would currently only affect some of the national expansion areas and would trigger regionally concentrated competitive situations. It is also questionable to what extent an additional network utilization of a competitor actually covers costs compared to one of your own customers.
Large expanding companies can achieve higher network utilization by opening up the NGA networks. However, there is still a long way to go until a nationwide gigabit network is developed. It is clear that the traditional copper infrastructure has been retained for too long. And only through the efforts of many regional carriers, initiatives by associations and a political will to change technology towards a gigabit fiber optic network will there soon be a comprehensive offer of gigabit data rates for end customers and the white spots can be closed. Once the nationwide expansion is complete, truly open networks can enable fair competition. The providers should then score points with attractive offers and services.
Increase attractiveness through new services
But it's not just home office workers and video streaming that need to be taken into account when it comes to the demand for higher bandwidths. The use of internet-enabled devices will continue to increase in the next few years and thus networks will continue to be utilized to capacity. Cloud services, but also the digitalization of public administration and industry require higher bandwidths and a stable backbone network. It will be important to further increase the attractiveness of your own fiber optic network, in addition to the bandwidth, with new services and to differentiate yourself even more from your competitors. Currently, the trend towards virtual reality, especially under Metaversum, provides us with a good example of how new services and powerful networks go hand in hand.
The implementation of such solutions is certainly too big a requirement for a regional provider. Nevertheless, smaller solutions are already being successfully implemented by some municipal utilities. Let's think about the smart home applications on offer, such as online video surveillance of the house and yard.
Creative products and services will be in demand here in the future. We see regional network providers as having an advantage here, as they can successfully differentiate themselves from national providers with services that are particularly tailored to their region. They know the local preferences of their customers.
Software support for all carrier/telco models
Regardless of whether companies expand networks themselves, rent them out or rent them, appropriate software products are necessary for effective network and customer management. For over 20 years, dimari GmbH has been offering the varioSuite, a product that offers high automation on all levels. By integrating the WBCI, WITA and S/PRI interfaces, carriers enable open access or easily access other networks. New services can be activated ad hoc.This article was published in the 2022 yearbook of the VATM.