UTILITY TELCO
OPPORTUNITY
UTILITY TELCO – IDENTIFYING
THE OPPORTUNITY
¾
Economic Enablers
•
Market Demand
– Retail or
Wholesale Telecom Sector
requires additional services
•
Utility Network Capacity
– Utility
has necessary infrastructure
coverage and capacity
•
Regulation
– some jurisdictions
recognise utility as fast-track to
completion
THE UTILITY TELCO
STRATEGIC RATIONALE
¾
Corporate Drivers
•
New Revenue Streams
– value
add services to customers can be
offered
•
Sweat Assets
– unusual for utility
to maximise return on assets
through internal service provision
alone
•
Reduce Op-Ex
–internal delivery
can be benchmarked against
market prices – sourcing options
can be considered against value
for money
THE UTELCO OPERATIONAL
MODELS
Telecom Value Chain
Unmanaged services Managed services Commercial WholeSale communication services Commercial Retail communication servicesFully Owned Fully Outsourced
Building, ducts, dark fiber Antenna masts, Spectrum
E2E circuits, vpns equipment, IT
Commercial WS offering (incl billing) etc.
Commercial retail offering (incl billing) etc.
Telco Utility
Co-operation models
(examples)
Unmanaged services Managed services Commercial WholeSale communication services Commercial Retail communication servicesFully Owned Fully Outsourced
Building, ducts, dark fiber Antenna masts, Spectrum
E2E circuits, vpns equipment, IT
Commercial WS offering (incl billing) etc.
Commercial retail offering (incl billing) etc.
Telco Utility
SOME EXAMPLES
UK
¾ National Grid/Energis - UK, 1993
¾ Support in NG for developing the first UK UTelco
¾ Optical fibre wrapped on EHV transmission lines providing national coverage
¾ High volume data services
¾ Customers BBC
¾ Mercury communications
¾ Scottish & Southern Energy – UK 2001
¾ Two DSO regions, Scotland and southern England
¾ Optical fibre wrapped on 132kV transmission lines
¾ Acquisition of NEOS Networks
¾ Investment in fibre and leased fibre to create national network
SOME EXAMPLES
UK
¾ Surf Telecom - UK, 1997
¾ Optical fibre wrapped on 132kV transmission lines
¾ Linking Atlantic landing points in south west England to London
¾ Wholesale market, B2B
¾ ScottishTelecom – UK 1997
¾ Two DSO regions, Scotland and north west England
¾ Optical fibre wrapped on 132kV/33kv & 11kV transmission lines
¾ Investment in fibre and leased fibre to create national network
¾ Customers – mobile operators, B2B, wholesale services
¾ Entered the retail telephony/data market with point to multipoint wireless, withdrew after 2-3 years.
SOME EXAMPLES
DENMARK
¾ Elro - Denmark, 2007
¾ Regional Distribution Company
¾ Acquired WiMax License to build mixed WiMax/WiFi/optical network
¾ Wholesale, B2B customers
¾ Retail customers receive bundled services,
PORTUGAL
¾ REN – National Transmission Operator, Portugal
• 6 border interconnections with Spain and almost 7.000km of Optical Fiber cables:
• 5.600 Km of optical fiber cables in the Electricity Transport Network (182.000km of OPGW fiber pairs)
• 1.300 Km of optical fiber cables in the Gas Transport Network (36.000km of fiber pairs)
¾Making available Towers and Technical Areas to other telecom operators and companies.
Example NL
Relined Offering
Relined was created to rent out overcapacity of the
telecommunication-infrastructure of TenneT (TSO) and ProRail to 3rd parties.
In contrast to most telecommunication providers we don’t offer bandwith but we are focusssing on renting out managed darkfiber.
Who is Relined
Relined is a joint venture of TenneT (TSO) and ProRail. Both companies own an optical fiber network (in HV masts and along rail infrastructure) which is used for own (tele)communication needs. Jointly both companies offer the overcapacity of their optical fiber networks to 3rd parties.
The know-how and reliablity of both companies, who operate for decennia an own telecom infrastructure, create an excellent basis for Relined.
DENMARK
¾ Elro - Denmark, 2007
¾ Regional Distribution Company
¾ Acquired WiMax License to build mixed WiMax/WiFi/optical network
¾ Wholesale, B2B customers
¾ Retail customers receive bundled services,
SOME OTHER EXAMPLES
¾ Rede Electrica – National Transmission Operator, Spain
¾ Iberdrola – Distribution System Operator, Spain
¾ Transelectrica – National Transmission Operator, Romania
¾ Electricity Authority of Cyprus – National network operator
¾ Fortnum/Telia cooperation in Stockholm (Royal Seaport redevelopment)
Example of inhibiting law
(source: The Dutch Electricity law 1998)
¾Artikel 17
¾1.Het is de netbeheerder, niet zijnde de netbeheerder van het landelijk hoogspanningsnet of een rechtspersoon waarin de netbeheerder een deelneming heeft als bedoeld in artikel 24c van Boek 2 van het Burgerlijk Wetboek, niet toegestaan goederen of diensten waarmee zij in concurrentie treden te leveren, tenzij het betreft het verrichten van werkzaamheden ten behoeve van:
¾a. de uitvoering van de taken, bedoeld in artikel 16, eerste of tweede lid, of 16a, voor zichzelf, voor andere netbeheerders of voor anderen die een recht van gebruik van een net hebben;
¾b. de aanleg, het beheer of het onderhoud van leidingen buiten gebouwen voor het transport van gas;
¾c. het ter beschikking stellen en houden van netten ten behoeve van het gebruik van daarmee verbonden zaken door derden;
Article 17
The DSO, not being the TSO, is not allowed to deliver any goods or services, through which it could enter competiton, unless it relates to activities for:
¾The execution of tasks, ment in article 16 for itself, other DSO’s or others with the right of use of networks
¾The construction, maintenance and management of transport infrastructure outside building for the transport
of gas
¾The continuous offering of energy networks for the use of 3rth parties related activities
