VX Fiber Connected Britain Our Story 2021 - Flipbook - Page 29
operators, while other SPs may prefer to rely on the
connectivity services provided by Fibre Operators
active in the market.
The backbone Fibre Owner receives revenue from
operators, who lease dark fibre to deliver their services
(or those from their subscribers) to the local areas.
Here they lease passive connections (fibre, copper or
simply antenna sites and wireless frequency bands)
from the access-area Fibre Owner to deliver services
to subscribers – who may or may not pay a fee for that.
Like in all other ‘open network’ models, subscribers
choose the services from their operator of choice for a
service fee. The access-area Fibre Owner may receive
revenue from subscribers in the form of a one-off
connection fee and/or a monthly network fee.
The PLOM gives operators maximum freedom and
control in the design of their access network. However,
each competing operator needs to deploy active
equipment in the access node of each area of service
(unless a sharing agreement is reached), which leads
to inefficiency and high investment and maintenance
costs (CAPEX and OPEX) in areas with low population
density. Hence, the PLOM is best suited for relatively
large and densely populated areas and favours the
large SPs. The PLOM is typically used by public-run
municipal networks in large cities, in which the public
authority takes the backbone Fibre Owner role. A
prominent example is the Stockholm fibre network.
Active Layer Open Model (ALOM)
In this model, one entity deploys and operates the
passive and active layer (hence acting as an integrated
Fibre Owner and Fibre Operator). This entity places
active equipment in all access nodes and builds an
open, operator-neutral network over which all SPs can
deliver their services to all subscribers.
The value chain for the ALOM sees the backbone Fibre
Owner and Fibre Operator roles joined. The backbone
Fibre Owner and Fibre Operator provider receive
revenue from Service Providers to deliver their services
to subscribers through its backbone network and onto
the first mile connections. The first mile connections
are leased from the access area Fibre Owner. Again,
subscribers choose the services from an operator for a
service fee. In a variation of the ALOM, the network fee
is paid directly to the Fibre Owner and Fibre Operator.
In both cases, like the PLOM, the access-area Fibre
Owner may receive revenue from subscribers.
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