New business Models for Digital Inclusion, February'09 New Business Models for Digital Inclusion Benefits for extending the open Networks up to the last mile February 2.009
Open Networks - Business Models09
Jan 23, 2015
Business models to develop a universal network based on free technology
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New business Models for Digital Inclusion, February'09
New Business Models for Digital InclusionBenefits for extending the open Networks up to the last mileFebruary 2.009
New business Models for Digital Inclusion, February'09
guifi.net Evolution:From Community to Open Networks
2.0092.001 2.0052.003 2.0072.0022.001 2.004 2.006 2.008
Small wi-fi “communities”Small private networks
EU “Telecomm Package”
Spanish DGTel 2003Follow-up EU Directives
First inter-municipalities linksGurb/Vic/Sta. Eugènia de Berga
Provisioning applications“Comuns Sensefils” (Peer to peer agreements)Network information and components known to all
Established a Foundation toSupport the model
Premi Nacional de Telecomunicacions
Actively explaining the model to NRA and officials
100
6.000
2.000
500
nodes
<10
Selected as 3th wave EU Living Lab
New business Models for Digital Inclusion, February'09
eDivide vs eInclusion
● Fight eDivide does not necessarily means solve eInclusion
● eInclusion can be kept low due several reasons, not only because eDivide
– Classic ISP business model just focuses on ARPU, therefore generates a risk of exclusion
MIGHT BE INSUFFICIENT● Need for new models
Incl
usio
n
Exclusion
Divide
New business Models for Digital Inclusion, February'09
Public Sector
Classic Model● Funding traditional WISPs / ISPs
– Few players/limited business dissemination and competition
– Facilitates vendor & technology “lock-in”
– Flawed Business Model depending on Public subsidies, discourages service provision: Low effectiveness and not sustainable
– Static, centric & monopolistic, conflicts with other initiatives, in particular while using open spectrum
– Only to digital divide, misses digital inclusion
Single Operator
Franchiser
Dealer
CustomersFunding/Subsidies
Services
Fees
ImmigrationLow Incomers
Visitors/non residents
etc
Exclusion
Inclusion
Public SectorPublic Sector
Controlled Subcontracts
New business Models for Digital Inclusion, February'09
Public Sector
Old “Community” Model● Single Community/Cooperative Centric
– Sustainability: Dependent on volunteering, public funding, donations or fees
– Requires membership, but looks also to digital inclusion
– Critical Mass: Difficult to meet requirements to scale
– If no clear agreements, investment uncertainty: If successful, faces a risk of privatization
– Few players, small ecosystem
– Trends to technology “lock-in”
Community / Cooperative /
Association
MembersVolunteers
Funding/Subsidies
Connectivity Services
Fees/Donations
Non members
Exclusion
Inclusion
New business Models for Digital Inclusion, February'09
Open & Neutral Model● Single Community/Cooperative Centric
– Certainty: Based on clear peer to peer agreements open to everybody, participants retain ownership on their investments
– Symmetric & Dynamic: Many players in fair competition / same opportunities, stimulates new products and services. Complete and varied economic ecosystem, friendly to varied initiatives, territory & SMEs.
– Works both for digital divide and digital inclusion
– Complement: Build infrastructure available to others
– Able to scale / globalize
Open infrastructuresPubic Sector Enterprises
Individuals
Services
Content
Investments
ServicesContent
Investments
Servic
es
Conte
nt
Inve
stmen
ts
New business Models for Digital Inclusion, February'09
Compare...
Network type Economic benefits to
Business model basement
Stimulation for providing services
Fair competition?
Classic corporate telco/ISP
The telco itself and the subcontracted agents. Other are only customers.
Control over the network (fees, ads...). Maximize ARPU (how much a customer can pay for...)
Limited. Margin oriented, more margin as less services/costs
Trends to create dominants. Need for regulation
Public ISP Public Institution & the contracted. Others are only customers
N/A or subsidy oriented
No or only by what's required on the contract.
Limited or at the best, N/A
Open & Neutral All. Including individuals, professionals & SME.
Based on services, cost oriented
Complete, Service levels provided by the users themselves or service providers
ALWAYS
New business Models for Digital Inclusion, February'09
Challenges for Open Networks
● From “User” to “Participant”
– Enable everyone as capable for being not only a consumer or content provider, also become an infrastructure provider.
● Dissociate service provider from infrastructure ownership
● Keep the network open, understand openness requirements, not build more private networks
● Neutralize resistance
– Speculation pressure / Hypes / Corporate lobbies / acquired privileges / “Contamined” officials / Subsidy “culture”
● Keep growing, build success stories, technology shift to “homes with tails”
New business Models for Digital Inclusion, February'09
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