MATT REES ALTNET CONVERGENCE
If open networks do not become the norm, or if broadband providers continue to go alone and attempt to expand their footprint, the risk of network ‘overbuild’ is high.
CLOSED MINDS? Despite these advantages, there is some resistance, particularly from established vendors who might lose share by opening up their networks to competitors. However, the evolving market dynamics, especially the consolidation in the altnet market, could act as a catalyst for open networks if enough players in the market begin to call for it. Smaller altnets could benefit from better operational efficiencies or from being able to share infrastructure, while larger operators or private equity companies would be able to consolidate their networks far more easily. Both of these scenarios would aid the UK’s march towards Project Gigabit’s nationwide coverage target of 2030. Despite this, the government has yet to produce any guidance or regulation to encourage standardisation as altnets pursue the Project Gigabit dream. Open networks are unlikely to happen without this, as incumbent equipment manufacturers may be reluctant to play ball unless mandated to. If open networks do not become the norm, or if broadband providers continue to go alone and attempt to expand their footprint, the risk of network ‘overbuild’ is high. Having new infrastructure built alongside or over existing networks detracts from the mission of nationwide coverage, but providers may look to build in areas they see as more commercially viable as opposed to building out to more hard-to-reach communities. A shift towards open networks and shared infrastructure would go a long way to avoiding this scenario, ensuring resources and investments are used efficiently and expansion is managed in a way that prioritises operators and end-users.
cost-effective technologies available, regardless of the supplier, as well as make navigating supply chain challenges easier. A standardised, open UK fibre market would lower the cost of network technology, not only accelerating any further rollouts but also making infrastructure sharing possible and improving the economics of extending FTTx services. In practical terms, facilitating open access networks across different types of networks, such as long-haul and metro networks, involves integrating various vendor hardware within the same network segment. For instance, in long-haul networks, this might involve using one vendor’s optics equipment in conjunction with another’s line system. In metro networks, it could entail ensuring compatibility between different vendors’ Passive Optical Network (PON) technologies. Other key building blocks of altnet convergence will be the continuous adoption of Software Defined Network (SDN) controls to enable this merger of various proprietary closed networks into a cohesive, mixed vendor ecosystem. Altnets operating programmable networks, could facilitate network interaction via APIs, and support a vendor-neutral open architecture. The final piece of the puzzle is altnets having the right transport and backhaul capabilities to cope with increasing data demands at the network edge. To achieve this, these altnets will need to leverage a backbone wholesale network infrastructure that can bring their disparate networks together. Again, standardisation of network equipment would make this process more efficient and cost-effective for all parties involved.
now controlling the combined entity. Even without outside investment, we are likely to see more of these deals going forward, with larger altnets looking to absorb some of the smaller ones. CityFibre, the largest altnet in the UK, recently announced it is aiming to make as many as five acquisitions over the next two years, claiming that altnet investment slowing down is ‘creating the opportunity to consolidate the network’.
OPENING THE DOOR TO NETWORK CONVERGENCE Whether it’s built on goodwill or more aggressive M&A, integrating
these disparate fibre networks will be technically challenging. With each Altnet making their own network architecture decisions and vendor choices, most Fiber-to-the-X (FTTx) networks will look fairly different to one another. Trying to consolidate networks built on equipment from different vendors without any industry-wide standards in place could lead to performance issues or service disruptions, or fail to deliver the efficiency needed from the scale. Network management could also prove complex, with operations centres facing difficulties in understanding service performance across a mixed vendor ecosystem. The answer to this problem could be embracing the ‘open network’ approach. This is something we are seeing more and more of, particularly in the mobile space. For fixed networks, separating hardware and software and promoting interoperability would offer several advantages beyond making network consolidation easier. It would enable altnets to diversify their supply chains and adopt the most innovative or
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ISSUE 36 | Q1 2024
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