The concept of open fibre networks is transforming the telecommunications landscape globally. By enabling shared infrastructure that allows multiple service providers to operate on a single network, this model fosters competition, reduces costs, and enhances connectivity.

While the approach has been widely embraced in regions such as Europe and parts of Africa, its uptake in Asia-Pacific has been slower.

At a recent panel discussion titled The Move to Open Fibre Networks, at ITW Asia 2024, industry experts discussed the benefits, challenges, and future of this model across different regions.

• Julian Rawle, Principal - Cambridge Management Consulting (moderator)
• Warut Wiwattanawongsa, AVP carrier business - National Telecom
• Sudhir Juggernath, CEO - TELCABLES SOUTHERN & EAST AFRICA
• Tugay Yilmaz, senior investment officer, telecom, digital infrastructure & natural resources (APAC) - IFC

Defining open fibre networks and its global adoption

To open the discussion, Julian Rawle, associate of Cambridge Management Consulting, who chaired the session, outlined the principles of open fibre networks.

He described them as models where infrastructure is shared among multiple service providers, promoting flexibility and encouraging market competition. He invited the panellists to reflect on their regional experiences and the broader implications of these networks.

Warut Wiwattanawongsa, representing National Telecom (Thailand), offered a regional perspective, explaining that open fibre networks in Thailand are akin to a "neutral last mile" or "open cable system" model, with its focus being on the Metro layer. However, he acknowledged that the concept remains relatively new in the region and is still evolving.

Tugay Yilmaz from the International Finance Corporation (IFC) viewed open fibre networks as a critical strategy for bridging the digital divide: "It's about sharing the infrastructure and not necessarily having a monopoly... so you can have competition in the market,” she told the audience.

Sudhir Juggernath of Telcables concurred, noting the importance of shared infrastructure in connecting underserved populations: "It's about connecting the unconnected... sharing fibre infrastructure helps companies reach the unconnected quicker."

These perspectives emphasised the potential of open fibre networks to drive both commercial and social impact, depending on regional contexts.

The key benefits

The cost-saving potential of open fibre networks was a recurring theme throughout the discussion. Yilmaz explained how shared infrastructure avoids unnecessary duplication of resources, particularly in fibre deployments, which she described as more challenging and expensive compared to mobile towers: "It is critical to share and not duplicate the investments... it’s not commercial anymore to build your own networks."

In Thailand, Wiwattanawongsa highlighted the issue of congestion in the telecom landscape, where multiple operators have installed separate cables: "We have so many cables... there’s no more space [on the poles] to put them. Sharing reduces costs and increases margins."

The adoption of open fibre networks thus provides an economic incentive for operators, enabling them to streamline operations while fostering competition in the market.

The panel also discussed the role of open fibre networks in accelerating connectivity in underserved areas. Juggernath noted that smaller Internet Service Providers (ISPs) could benefit significantly from shared infrastructure: "Smaller ISPs can extend fibre into residential areas at lower costs and share the backhaul to connect remote areas."

By pooling resources, operators can more effectively address the connectivity gaps in rural or less profitable regions, particularly in markets like Africa where infrastructure investments are often constrained by economic factors. From a consumer perspective, open fibre networks were seen as drivers of affordability and improved service quality.

According to Yilmaz, the cost-efficiency of shared networks ultimately benefits consumers by making services more accessible: "Making services affordable is critical to closing the digital divide."

Juggernath further stressed how the collaborative model allows providers to focus on delivering superior services to end users, fostering innovation and boosting customer satisfaction.

Regional challenges in implementation

Despite the benefits of open fibre networks, the Asia-Pacific region has been slower to embrace this model. Rawle observed that while Europe has seen widespread adoption, Asia lags behind. In Thailand, Wiwattanawongsa attributed this to regulatory challenges and fragmented standards:

"The regulation is still young... there’s no clear direction for operators, and pricing varies even within the same country."

The lack of cohesive policies and established frameworks has made it difficult for operators to adopt the open network model effectively. Yilmaz added that the dominance of mobile broadband over fixed broadband in many Asian markets further complicates the transition: "Asia is so unique... one model doesn’t fit all markets, and mobile broadband services are already good and affordable."

This reliance on mobile networks, particularly in prepaid markets like Indonesia, has reduced the incentive to invest in fibre infrastructure.

Africa: Lessons from a mature market

In contrast, Africa’s more advanced adoption of open fibre networks offers valuable lessons. Juggernath explained that in markets like South Africa, the collaborative approach has helped operators scale effectively, despite challenges such as vandalism and security risks: "Playing nicely with each other works fine... once networks are stable, customers are happy, and downsides are manageable."

He emphasised the importance of partnerships among operators, which enable them to address shared challenges and maximise the potential of their infrastructure investments.

Regulatory and operational hurdles

The panel acknowledged that the absence of clear regulatory frameworks remains a significant barrier in many regions. Yilmaz stressed the importance of government support in creating equitable risk-sharing models to attract investment: "Governments need to play a role in setting standards and ensuring fair competition."

Operational challenges such as pricing transparency and management control also came under scrutiny. In Thailand, Wiwattanawongsa noted the lack of uniform pricing guidelines: "There’s no single pricing... it’s up to each operator, leading to questions about fairness."

By comparison, Juggernath described Africa’s model as more straightforward: "It’s just a shared pipe... it’s about delivering how you manage that service to your customer."

Risks and downsides

While the panel was optimistic about the potential of open fibre networks, they also acknowledged the associated risks. Yilmaz pointed out that fibre is a more demanding asset class compared to towers, requiring significant upfront investment and precise deployment strategies.

"Fibre is much more challenging... with one tower you reach many customers, but with fibre, it needs to be very specific,” she said. Juggernath highlighted security risks, including vandalism and sabotage, as key challenges in implementing open access networks.

He noted that while these issues are manageable, they require robust management systems to mitigate their impact. "Management control, sabotage, and vandalism are real issues... but the upsides outweigh them."

Key takeaways

Clear regulatory frameworks are essential to the success of open fibre networks. Governments must play an active role in establishing standards, ensuring fair pricing, and creating a level playing field for operators. Yilmaz underscored the importance of equitable risk-sharing to attract private sector investment.

The panel agreed that collaboration among operators is crucial to overcoming operational and infrastructural challenges. Juggernath noted that market demand for higher speeds will ultimately drive the adoption of fibre networks: "When the market demands higher upload or download speeds, fibre will start growing."

Given the diverse market conditions in regions like Asia-Pacific, the panel stressed the need for tailored approaches. Wiwattanawongsa shared Thailand’s initial success with open networks: "After we started [implementing open access Metro networks], we saw that it was good. We saved costs and shared infrastructure, and everyone loves it."

The panel discussion highlighted the transformative potential of open fibre networks in fostering connectivity, competition, and affordability.

While regions like Europe and Africa have made significant strides, Asia-Pacific faces unique challenges, including regulatory immaturity and market diversity. However, as consumer demand for fibre grows and regulatory frameworks mature, the region seems poised to catch up.

The insights shared by industry leaders such as Wiwattanawongsa, Juggernath, and Yilmaz underscored the importance of collaboration, innovation, and government support in driving the adoption of open fibre networks.

As Yilmaz aptly summarised: "Open access is part of the solution, but it’s not the full package... it’s challenging to execute a good model, but it’s critical for the future."

By addressing these challenges and leveraging the opportunities presented by open networks, the telecommunications industry can ensure a more inclusive and connected future.