Local Loop

An open access network (OAN) is a horizontally layered business model for telecoms that has some interesting advantages. It is typically implemented by separating physical infrastructure from services. This creates a virtual market place, where end users have a choice of multiple service providers, and the service providers in turn are freed from having to invest in expensive and difficult to maintain access networks.

The wikipedia article describes OAN in more detail, and refers to a number of examples where this model has been implemented in broadband access networks.

But if the service provider doesn’t pay for the infrastructure, who does? Governments have already done this once, discovered they’re no good at it and consequently privatized the state owned telcos. These telcos are moving in the opposite direction of open access, instead trying to figure out ways out of the dumb-pipe trap through vertical integration, value added services, and so on.

An idea called homes with tails proposes to include the last mile as part of your property when you build or buy a house. This is smart, because it opens up a brand new (and also bandwidth/throughput/services independent) way to amortize the cost of the broadband access network.

Yesterday, Joe Botha blogged about what he imagines a network architecture/billing model for broadband OAN could be. What he doesn’t mention is that this idea is not new to South Africa. This prompted me to dump my thoughts on the matter (many of which I’ve been ruminating on for some time) into this post:

A few years ago, Neology (who I’ve previously blogged about) did an OAN pilot project in Hatfield for the Tswhane (Pretoria) municipality. If I have the story straight, this was a Wifi based mesh network that had an http captive portal that let you choose between 2 or 3 different ISPs, and it worked. This initiative subsequently stalled (apparently due to council politics) but my point is that OAN broadband been demonstrated in the local context.

If the access network infrastructure was not owned by government, but by the end users instead, perhaps the outcome would have been different. So let’s push this idea further. The next best thing would be to avoid relying on local government for wayleaves/right of way/servitudes. This might be possible using wireless local loop, but I’m just going to ignore that option because a bunch of home owners have little chance competing against multi-billion Rand tel/cellcos for exclusive access to radio spectrum (and the ISM-band WISP approach has some drawbacks).

Now it only takes a short drive around your city in South Africa to notice the transformation from traditional suburban townships to gated communities/housing complexes/residential estates. Herein lies the opportunity to do exactly what I’ve described in the paragraph above. I’ve head some entrepreneurs and local ISPs (who?) have begun to wire up these estates internally and provide centralized Internet break-out. I don’t know if this is done on an open access basis, but again, my point is that this piece of the puzzle exists.

Finally, Dark Fiber Africa have recently begun doing something similar in office parks, and as with their metro dark fiber networks, their model is open access.

So where to from here?

Vodacom, MTN and Cell C have all invested in fiber-based back-haul to their cellular base stations (ever wondered why the roads are being dug up and trenches filled with brightly coloured plastic ducts, deep in residential areas?). These base stations now represent an extensive “curb” (in the network sense), and since in many cases towers are shared by two, or all three operators, I think base stations make an ideal location for OAN broadband “meet me” points.

I haven’t asked, but I suspect the cellcos aren’t thinking this way (yet). If they venture into fixed line residential broadband, they will probably first attempt PON-based overbuild in affluent suburbs.

A final thought to leave you with is to consider the explosive growth in recent years of Wireless User Groups. These non-profit hobbyist metro Wifi networks are mostly used for fire-sharing and gaming (Internet access is specifically not provided). It shows that at least some South African consumers are willing to invest in their own telecoms infrastructure. Perhaps the way to bridge the gap between WUG and WISP is to form a fully licensed and professionally operated telecoms cooperative, like this one.