What is an Open Network

Open Access Networks

- What -

Fiber to the Home (FTTH) represents a big step from current copper-based access technologies, not only in terms of available bandwidth, but also because it represents a golden opportunity to move from service-dedicated networks to open, multilayer networks where all services will be delivered over one access network.

In the open network business model, competing service providers (SP) get end-user access through a single network, in an free market environment. The end users can choose their ICT services (TV, Internet, Video-on-Demand, telephony, home surveillance, cloud services, e-health, etc...) from their favourite SP.

- Why -

This allows to break the natural monopoly of wired networks, by providing competition at service level. An open FTTH network is an infrastructure for the market AND for society.

Competition means

• • increased freedom of choice for the end users,

  • service innovation,

• increased market efficiency

Shared infrastructure means

• reduced environmental impact

  • an improved business case for FTTH deployment and operation

- How -

The open network model [1], in which services are provided on a fair and non-discriminatory basis to the network users, is enabled by conceptually separating the roles of the service provider (SP) and the network operator or owner. Due to the different technical and economic nature of the different parts of the network, different roles and actors can be identified. A fibre access network broadly consists of a passive infrastructure (implying right-of-way acquisition, trenching, cable duct laying, local-office premises), and active equipment (transponders, routers and switches, control and management servers). The passive infrastructure is typically characterised by high CAPEX, low OPEX, low economies of scale, and is highly local, hard to duplicate and inherently subject to regulation. The active equipment is characterised by high OPEX, economies of scale, and is subject to limited regulation.

These factors justify a further role separation between a physical infrastructure provider, PIP (or network owner), which owns and maintains the passive infrastructure (typically real estate companies, municipalities, utilities); and the network provider (NP) which operates (and typically owns) the active equipment.

Depending on which roles different market actors take up, the network will be open at different levels and

different business models will arise. A single actor may act as PIP and NP, in which case the network is open at the service level. If the roles of NP and PIP are separate then openness at infrastructure level is achieved. Generally, one PIP operates the infrastructure, while one or several NP can be allowed to operate the active infrastructure generally over a fixed period of time, at the end of which the contract may or may not be renewed (in which case a new NP is designated and active equipment may need to be replaced).

In some cases, economies of scale make it impractical to have a truly multi-NP network. Independently of the specific model, however, the NP should offer different service providers access to the network (and therefore the users) on non-discriminatory conditions. The end users typically purchase services directly from the service providers. The NP receives revenue from the SP and pays a connection fee to the PIP for network access.

A number of challenges still remains to be met, like the lack of standardization of interfaces, lack of efficient network-virtualisation mechanisms, unclear service and network provider roles towards the end-user, proliferation of devices at the end user premises, and unclear regulation. This workshop will bring up those challenges and will try to collect possible answers and solution proposals, by confronting the viewpoints of incumbent and alternative network operators, service and application providers, vendors, researchers and investors.

1. M. Forzati, C. P. Larsen, C. Mattsson, Open access networks, the Swedish experience, proceedings of the International Conference on Transparent Optical Networks (ICTON) 2010, Munich, Germany, paper We.A4.5.