Access to the broadband nets - A pilot study - PTS-ER-2005:29
20/06/2005
This limited pilot study has yielded indicative results within some important areas and identified a number of preconditions, and also problematical areas, that are important to improve access to the services of the information society.
A network-owning undertaking that offers an open network can create favourable conditions for increasing the numbers of options available and extending the range of services, with short or no lock-in periods for the end-users connected and lower prices. It also constitutes an infrastructure that can provide alternatives to the de facto monopoly existing in many places. It may contribute to improved service, price pressure, opportunities for increased redundancy and security for the benefit of the service suppliers. Open networks can be good for small stakeholders, who need to make smaller investments and who can be given a boost towards reaching out to end-users.
However, there are numerous pitfalls and risks, where the conduct of the network owner is absolutely vital. There is an inherent conflict of interest regarding competition with the service suppliers in the network. Great clarity and stability in the business model is required on the part of the network owner and/or communications operator. The financing of the network is another sensitive issue, where for example cross-subsidies from other operations create imbalance between competing network owners. It is here that the municipal urban networks viewed overall have a problem with credibility, though major stakeholders are also sometimes viewed with suspicion. Furthermore, the conduct of property owners is fundamental for the opportunity of households to connect to an open network.
Geographic and demographic preconditions to operate an open urban network differ between municipalities, as does competence, maturity, choice of technology, political visions and ambitions. Developments assume different profiles in different municipalities and regions. In pace with increasingly demanding services being introduced in the network, such as IP TV and IP telephony, new and critical issues arise concerning business models and models for prioritisation between services and service suppliers in the network. Issues concerning security and accessibility become central. It may in several respects be difficult for individual undertakings that own open networks to adopt positions on a large number of strategic issues concerning business models and choices of technology, with different demands from owners, politicians, service suppliers and end-users.
The cooperative organisations such as the Swedish Public Utility Housing Enterprises (SABO), the HSB National Federation, the Swedish Urban Network Association (SSNF), the Association of Local Authorities and others, and similarly the municipalities and local stakeholders, are of great importance as regards imposing demands and supporting urban network owners in their role as providers of open IT infrastructure with high transmission capacity.
Since the broadband market is in several respects immature (there are no standards, the various network owners are in greatly varying phases of development, and there are as yet few demanding services that push issues concerning, among other things, security and business models to the forefront), there is a great need to continue to monitor developments. PTS should, using various methods, continue to monitor this area. PTS should be active in supporting and informing the parties affected regarding the need for good accessibility to the broadband networks for service suppliers. Whenever necessary, investigations must be conducted regarding the various methods that PTS has at its disposal to steer developments in the desired direction.