FROM THE INDUSTRY
Quite a balancing act, isn’t it? HN: Don’t assume that you can just replace an amplifier here and an amplifier there. That’s not a viable option. Technology keeps moving at a fast pace. Operators who are doing strategic transition to fibre still need to execute technology transformations on cable infrastructure, so we are looking at how we can help them not only ship boxes but also support them to operate and transform. We have quite a lot of knowledge how to build and run.
Tell me how things are going at Teleste Hanno. HN: Let’s start with Europe. While we are involved in the fibre business, we have a strong legacy in cable and coax systems. Therefore, how the cable assets in Europe are going to evolve and what scenarios are there for fixed network operators with cable assets is an area we analyse carefully – as well as the opportunities to develop those cable assets further, for example. HN: While we claim that coax can do everything that fibre can do, we do recognise that there are other strategic reasons why several fixed network operators in Europe are looking at how they will be overbuilding existing coax systems with fibre. There is no ‘one size fits all’. Different operators have very different timelines and strategies in transitioning to fibre. Some of them are not going to do it. Why not? HN: They’d rather compete for the next 10 years, invest in existing coax rather compete with the fibre players. Some firmly believe the best way they can compete for fixed broadband is to invest in their coax systems. Elsewhere fibre overbuilding is deliberately underway; in France the local network operators are fibre overbuilding in their existing coax footprint. It’s a case-by- case scenario. Is investing in coax happening because the subscriber rate is not as great as everybody thought? HN: In the UK a lot of money was invested but the number of homes connected has turned out to be lower than expected. The connection rate has been a disappointment. The timing was unfortunate, post Covid; interest rates were going up at the same time, the cost of capital was growing. That has happened elsewhere too; even in those markets where fibre overbuilding was in progress, the speed has not accelerated. It’s possibly even decelerated the past couple of years. Arguably you’re better off preserving existing infrastructure than overbuilding if you don’t know
if the return is going to be there. AP: If you start to push too hard with fibre - especially with your existing customers - as a subscriber one would start to think that, ok there’s clearly a market here - let’s see who else can provide fibre for me. You are opening yourself up to competition again. Logically, if you have satisfied customers who use coax and get everything they need, how much do you want to really push them? The public are also rightly confused. In the UK many people think they’re connected to fibre already; there has been a lot of misinformation. AP: The naming of these broadband connections has also confused people. ‘Superfast broadband is here’ for example, have not helped. It’s happened all over Europe and has hampered progress. Hn: Even though we are evangelists of DOCSIS and cable, we recognise that there are strategic reasons why the fibre roll out is taking place and it’s not going to go away. So, how can this transformation take place at a reasonable cost, with a good quality service for subscribers? Reaching the homes passed target is going to take years, and even then you still need to convince the customer. If things are working well as they are, why would they be motivated to move from coax to fibre? They’ll have to dig up your lawn as well. HN: So, you need to motivate and convince the subscribers. That will take time, 10 plus years at least, while they still need to have DOCSIS subscribers in their network. A good opportunity for Teleste in the meantime. HN: If we agree that you want to still maintain your existing broadband service, you also have to be prepared to invest in your network as technology evolves over the next 10 years.
You have seventy years’ worth of that.
HN: We think there is a lot of sense in outsourcing operators’ DOCSIS needs over time; outsourcing the legacy network engineering and operations is an effective mid-term strategy; it ensures business continuation while operators are gradually losing DOCSIS and HFC competencies, while it can make good sense for us to pool such competencies and serve several network operators with that capability pool. It’s win-win. We have already completed outsourcing setups in Finland, where we are actually running the core DOCSIS and cable systems. We are running the NOC on behalf of the customer. We now receive the tickets from the help desk. We dispatch the truck roll and do troubleshooting what’s going on in the network. And when it comes to transitions to virtualised DOCSIS core, Distributed Access Architecture etc. - these virtualisations and distributed architecture are complex transformations. This is a smart move; you probably don’t have much competition. HN: Correct. Cable operators have historically had strong in-house engineering and operations divisions; outsourcing was not really a thing for them. Cable network operators have been traditionally vertically integrated. What would your message be to the market on this initiative? HN: Guys, don’t rest on your laurels. You have to be ready to maintain and transform your systems. The market is divided into two types of businesses. Of those that
SEPTEMBER 2025 Volume 47 No.3
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