FROM THE INDUSTRY
notes that in fact, like the Autobahn, the fibre network is capable of much higher speeds than other roads. But the driving experience is associated with the car they’re steering, rather than the road they’re on. “No one driving on it knows which companies were involved in building it,” he says. “It is simply the roadway that enables the driver’s experience, which is largely dictated by the car they are in. For the builders of the motorway, they get no brand equity for that experience.” While the natural inclination is to address this by focusing on speed and pricing, the results of a 2023 Calix survey of service providers indicate that this may not be the right strategy. Most subscribers purchase half a gigabit or less, which implies that speed is simply not enough of a differentiator. When private funding comes into play, investors want to see financial returns.
offerings once the network is deployed. To date, this has taken a backseat to building the actual network. “Most altnets I’ve spoken with have been initially focused on homes passed as their funding was targeted on network build. Adding subscribers took a backseat in terms of focus and now we are seeing that situation turn around as generating revenue is mandatory to ensure continued operations of the business. While intentions were always there, in reality, everything needs to happen in parallel,” says Bloch. Just as important as adding subscribers is the ability to deliver on the brand’s promise at each customer touchpoint. This consistency will result in a strong, sustainable service that will provide a competitive differentiator in an industry plagued by poor customer satisfaction: the average Net Promoter Score (NPS) for altnets in the United Kingdom is a dismal 12*. “Users’ experiences are defined by how they use the networks, what they are doing while they are on them,” explains Bloch. He compares the network to a brand-new motorway with many lanes to accommodate a lot of traffic. He
Independent and alternative network operators, or altnets, will play a key role in building out a modern digital infrastructure. As altnets continue to construct fibre networks, they are also expanding their focus to subscriber acquisition—and for good reason. “A fibre network is an amazing community asset, especially in areas that have been traditionally under-served or ignored altogether,” says Bloch. “When these networks are built using public funds, the return on investment is the building of the infrastructure itself, and success is measured by how many homes are passed. But when private funding comes into play, investors want to see financial returns. Their measure of success is defined by profitability and long-term monetisation, and the first step towards that is to connect as many homes as possible.” Building a Winning Brand How can altnets adapt their business models to make this shift successfully? According to Bloch, it’s all about the brand. The first step is to build brand awareness and trust that will attract and retain subscribers with value-added
MARCH 2024 Volume 46 No.1
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