Telecommunications infrastructure business

NE beliefs in separation of the passive network infrastructure and network services. Infrastructure is local and needs local know-how as well as support of each specific region.

Based on our experience of developing and operating more than 15 local fiber and wireless access infrastructure operators as well as of joint planning projects with strategic partners like DT, FT, Arcor, Fastweb, Terrafirma and BBNED we are investing in local telecommunication infrastructure projects in several European countries.

We are targeting to offer the usage of the infrastructure to all service providers in the region (multiple customer usage), to offer symmetric up- and download services and to use long-term abbreviation rates. Optical fiber is a proven technology and fulfills these criteria. Fiber is technology agnostic due to the fact that 85% of the implementation costs are absorbed by the implementation of the ducts in the cities.

The close working relationship with the municipality organisations leads huge reductions of the construction costs to implement ducts in city areas and links the interests of the other utility distribution networks with the ducts of the fiber distribution networks. The infrastructure part of the telecommunications becomes part of the utility industry.

The challenge will be to sign take-off agreements upfront the investment of the infrastructure. The local authorities and public organisation as well as the local residents will play a key role. Telecommunications infrastructure will play a similar role like the distribution networks for electricity, gas and water. It is a competitive factor for each region in a global economy.

The symmetric bandwidth of local access infrastructure will be more and more important for business models for consumer to business (b-2-c). In the high tech environment and small enterprises in the developed countries the importance is growing due to distributed workforces.

Network Economy is working on the development and financing of several projects jointly with municipalities and public organisations in different countries as well with private equity companies to buy out telecommunications infrastructure from vertical integrated operators.

Therefore we have signed an agreement with Malcolm Matson, founder of COLT Telecom and founder of the Open Local Access Network Foundation (OPLAN) to promote and work jointly on utility telecommunications infrastructure projects.