Open Access Network (OAN) and Fixed Mobile Convergence (FMC): Foundation for a Competitive New Business Model

Today, the increasing adoption of internet applications is driving the demand for high bandwidth communication services to individuals, homes and business premises. Fiber to the home (FTTH) is a future-proof fixed access technology that supports high bandwidth applications to the end user; however its deployment typically requires heavy capital investments that make for a significantly long payback period. For this reason, there has been an increase in fiber access network sharing initiatives between Network Operators. Analysis has shown that sharing the infrastructure on a wholesale basis delivers savings in capital and operational expenses; subsequently shortening the RoI (Return of Investment) period, enabling the faster delivery of services to a greater number of subscribers. This model is known as OAN; a horizontally layered network architecture and business model that separates the physical access of the network from the actual service provision. This paper presents an overview of OAN models, the most commonly shared infrastructure globally, and draws conclusions from experiences in the region. The paper outlines strategic business models, provides guidelines to overcome technical and regulatory implementation challenges and presents a new business model based on the combination of OAN and FMC concept that would enable the future deployment of networks capable of providing broadband services from multiple services providers (retailers) simultaneously.