Case study – Fibre network Investors
Maximize investment value and network operations
Learn how FTTH investors maximize passive fibre value with VX’s managed solutions, enabling efficient outsourcing, open access, and sustainable returns while ensuring service quality and competitiveness.
Summary
The outsourcing strategy provided by VX Fiber ensures scalability, efficiency, and profitability for FTTH investors. By aligning with modern standards and leveraging partnerships, investors achieve long-term value protection while promoting a responsive and adaptable network that meets consumer demands.
1. Background and Objectives
Background and Driving Forces
Investments in passive fibre infrastructure, whether newly constructed or existing, focus exclusively on developing and providing the physical infrastructure. FTTH investors do not engage in active network operations, such as managing or operating network technology, nor do they offer Internet Service Provider (ISP) services directly to end customers. Instead, their primary goal is to open access to the passive fibre infrastructure for third-party utilization. This access model allows various service providers, such as ISPs, to leverage the infrastructure to offer active network and telecommunications services to their customers.
Vision and Mission
The FTTH investor’s main objective is to achieve long-term value protection and sustainable returns on passive FTTH assets. Maximizing network utilization is paramount, as high utilization enhances operational efficiency, ensures optimal infrastructure use, and ultimately secures and increases profitability on the investment. By focusing exclusively on passive infrastructure without managing network operations or customer services, the investor can expedite project execution and maintain a clear strategic direction.
Objectives and Business Drivers
Initial Market Entry
In the project’s early phase, FTTH network expansion is supported by a primary anchor ISP and a targeted sales strategy (Kickstart). This structured approach helps establish a strong market foundation.
Increasing Network Penetration
A collaborative wholesale model enables multiple ISPs and service providers to access the passive network. This strategy maximizes return on investment by optimizing infrastructure utilization.
Outsourced Network Operations
The investor outsources active network operations, including customer and ISP-related services, thereby reducing operational risk.
Efficiency in Focus
Concentrating on passive network rollout and outsourcing active operations allows the investor to maintain a lean, efficient organization and quick scalability.
2. Requirements and Challenges
Product Requirements
To meet the needs of both customers and investors, the FTTH network structure should enable:
- Complete Outsourcing: All active network operations, ISP services, and wholesale activities are entirely managed by third parties.
- Secured Early Phase Utilization: Collaboration with an anchor ISP provides initial usage and market credibility.
- Open Access Model: This model allows multiple ISPs and service providers to utilize the passive network, enhancing consumer choice and encouraging market competition, ultimately leading to better offers, higher service quality, and a more competitive landscape.
Investor Requirements and Partnership Expectations
- Outsourcing Preferences: A full delegation of responsibility for active network and ISP operations, including the FTTH network’s operating platform, is essential for ensuring high network utilization and revenue stability. Over time, the network should support additional ISPs to maintain a target connection rate of at least 60%, a key KPI for both network valuation and investor returns.
- Focused Competencies: Outsourcing active operations allows the investor to concentrate on core competencies, maintain a lean organization, expedite project timelines, and achieve scalability.
Network Operations Partner Requirements
A reliable partner is essential to oversee all network operations, including:
Comprehensive management of active operations, including NOC, installation, activation, and IT solutions.
An Open Access framework to foster competition and attract diverse ISPs.
Tailored solutions for ISP brands, anchor partnerships, and pre-launch efforts to optimize network utilization.
Challenges and Concerns
FTTH investors recognize potential risks and address them as follows:
- Network Utilization: Partnerships and Open Access models enhance connection rates.
- Overbuild Risk: Open Access reduces competition risks from other networks.
- ISP Reputation: Strong partnerships maintain high service quality.
- Expertise Gaps: Leveraging VX Fiber’s expertise addresses knowledge deficits.
- Cost Management: VX Fiber’s “pay-as-you-grow” model ensures predictable costs aligned with network growth.
- Scalability: Outsourcing allows scalability without compromising core activities.
3. Solution and Partnership with VX Fiber
Strengths of Partnering with VX Fiber
VX Fiber provides a comprehensive, turnkey solution that maximizes ISP engagement and supports investors through:
- Proprietary ISP Solutions: White-label ISP options enhance brand visibility.
- Expert Project Development Support: 24/7 access to qualified engineers and software developers.
- Customized Processes: Adaptable workflows for both ISPs and investors.
- Advanced Reporting: Proactive client interactions with regular, customized reports on network performance.
- Automated Open Access: Reduces overbuild risks while enabling a high-efficiency leasing model.
- Competitive Advantage: Data shows competition within the network increases sales and connection rates.
4. Results and Benefits
Customer Benefits of Partnering with VX Fiber
VX Fiber’s model maximizes infrastructure investment value and promotes efficient network operations by:
- Accelerating subscriber growth and attracting diverse ISPs.
- Blending fibre operations platforms with ISP kick-start initiatives or white-label models.
- Supporting sustainable fibre networks through equal, collaborative partnerships.