Network pricing strategies: tiered vs spot vs flat

This is intended to be a fairly exhaustive overview of the various options available to a next generation telecommunications carrier for pricing its products and services into a market. Managing pricing is increasingly important as telco operators around the world consolidate their multiple (legacy) infrastructure platforms into a single (next-generation network) platform (typically utilising IP/Ethernet/MPLS/D-WDM). I’ll also highlight some of the various strengths, weaknesses, opportunities and threats (SWOT analysis) associated with each approach. I intend to keep this analysis at a reasonably high level to make it more easily approachable and digestible. In reality, I could quite easily write an entire textbook on this subject alone (any publishers interested?). Thus I will not be including all the technical proofs or justifications for each condition or approach here (you can pressure me directly for those if you really desire them). So, without further ado, let’s embark upon our quest.

Telstra stalling on NBN migration deal

This is all to be expected, yet it’s still tiring to watch. Telstra, NBN Co and the Government have stalled in their negotiations over ‘just compensation’ for Telstra’s copper access infrastructure. I use the term ‘just’ quite deliberately and this is my value-add to the media reporting.

What we are witnessing here, as passive bystanders, are commercial game theorists at their best. In the red corner we have Telstra and in the blue corner we have NBN Co. In the middle we have a market place of knowns and unknowns (influenced very heavily by end-users and the Government). Now the two main players are trying to position themselves optimally based on second-guessing the position the other player will adopt. And each party makes assumptions about just how capable, how smart and how much the other party may (or may not) know. Unfortunately, it is not enough for NBN Co to simply represent itself as a purely independent competitive player, as they are not!

FTTH Worlds best practice: NZ Wholesale Broadband

The intention of these posts is to encourage a more critical evaluation of existing business and industry practices. It would be somewhat presumptuous to expect that we have perfected everything already. Thus to ensure delivery of the best outcome possible, we need to learn how to effectively adopt, adapt, improve and innovate; not just replicate. I highlighted in my last two posts, which looked at BT Openreach and Singapore Nucleus Connect, why we need to be mindful of the diversionary tactics many industry professionals can resort to in order to supposedly minimise business risk–when in actual fact they are simply minimising their own exposure. There are lessons yet to be learnt within the still developing and embryonic ‘open wholesale’ broadband telecommunications market. Taking the time to learn these lessons and then innovating on top with our newly acquired knowledge, will ensure the best possible FTTH outcome is achieved in Australia.

FTTH Worlds best practice: SG Nucleus Connect

As I stated in yesterday’s critical examination of BT’s Openreach FTTH, we should always be mindful of the strong temptation to merely follow in someone else’s footsteps; especially when the trailblazers are well recognised, well regarded and hence have substantial market credibility. It is also crucially important that we are vigilant to recognise and quickly deflect arguments based on ‘fear, uncertainty and doubt‘, that may be put forward as justifications for why we should ‘just do it‘ some particular way. Today I’ll delve into the details (or as much as I can based on the very limited publicly available information) of Singapore’s Nucleus Connect FTTH network. In particular by looking at some of the approaches they are adopting to resolve the aforementioned intricacies involved in effectively wholesaling broadband access.

FTTH Worlds best practice: BT Openreach

There is always a temptation to merely follow in someone else’s footsteps, especially when you are unsure of the consequences particular decisions may have. It is always safer to transfer responsibility for a decision onto someone else, rather than to take the risk on yourself. This is especially true in cases where the trailblazers are well recognised, well regarded and hence have substantial market credibility. In fact, in some cases the temptation to blindly follow can be so overwhelming–that we will do so, despite possibly clear indications and warnings to the contrary.

Nobody ever got fired for buying IBM equipment

For this reason alone, I feel it is worth taking a critical look at what some of the other early movers in wholesale FTTH access networks are doing; and whether or not it is necessarily right for Australia to follow. Today, I’ll start with British Telecom’s Next Generation Access company, Openreach (BT NGA Openreach). In particular by looking at some of the approaches they are adopting to resolve many of the intricacies involved in wholesaling broadband access.

More than one way for NBN to be trans-sectoral

Wow, what a week so far. Almost every industry player, analyst and even the odd pundit here and there have come out to say something about the Governments release of draft exposure legislation for NBN Co operations. As I detailed in my last post, much of the debate is around elements of the legislation that allows NBN Co some flexibility to offer retail style services to government agencies directly. Amid all the controversy, even Senator Conroy himself has had to come forward to clarify matters in the media. However, it doesn’t end here. I believe this storm in a teacup deserves some closer attention as the experts may be missing something and the spin-doctors are just too busy spinning.

Draft NBN legislation released by DBCDE for comment

Legalese is always a dry read and legislation, especially so (disclaimer: I am not a lawyer, that is why I dislike reading this sort of thing, intently). Just over a week ago, the Australian Government released two exposure drafts of intended legislation that impacts the new NBN Co. (National Broadband Network Companies Bill 2010) and the other that impacts the rest of the telecommunications industry (Telecommunications Legislation Amendment (National Broadband Network Measures – Access Arrangements) Bill 2010). These have been released to the public for consideration and if desired, responses can be submitted back by March 15th, 2010. If sufficiently compelling arguments are raised then the legislation may be amended from its current form.

Well, let’s just say that there is a very strong likelihood that some amendments will be made based on feedback currently doing the rounds in the media.