Optical access networks: business guidelines and policy recommendations

Within the European FP7 project OASE, we have studied different business models for optical access networks. Based on an exploration of existing FTTH cases in Sweden, the Netherland and Germany, we developed a model for a cost-benefit analysis for the physical infrastructure provider (PIP) as well as the network provider (NP). Our evaluations have shown that the business case for the PIP is very difficult, even impossible in sparsely populated areas. Demand aggregation is an effective measure to guarantee earlier return on investment for the PIP. In-house deployment and CPE are significant cost factors for the NP. Business models that allow to allocate these costs to house or home owners should get enough attention. Furthermore, open access on fiber, wavelength and bit stream level allows for additional competition but also leads to additional opportunities and costs. Finally, some cross-sectorial effects can be expected from a fiber deployment. This could be an additional stimulus for national, regional or municipal governments to invest. In this way public support may be desirable

Integrating digital Health services : the role of the government and the challenge of cost allocation

eHealth, mHealth and eCare services are growing in numbers at a fast pace. This is mainly driven by technology and the societal challenges of an aging and more chronically burdened population while pressure on both human and financial resources increases. Though the adoption of these digital health services is challenging and experience difficulties. This work focusses on the main barriers that cause a 'gap' in the value network. Via case research following barriers are identified: 1) low willingness to pay, 2) unbalanced cost/benefit ratios of the actors or unfair cost allocation and 3) negative impacted business models. Furthermore the several roles of the government within the value network of digital health services are discussed and reflections and guidelines for digital health service developers are foreseen

Techno-economic analysis of residential thermal flexibility for demand side management

The continuing rise in solar and wind production leads to an increasing demand of flexibility to stabilize the electricity grid. Furthermore, we can assume a gradual but intensive rise in the use of electrical heatpumps for household spatial heating, for different reasons. Therefore, this paper investigates the feasibility and viability of entering the flexibility market by aggregating residential thermal loads. For this research, a dataset of 200 dwellings in the Netherlands, equipped with a heatpump and smart metering infrastructure, is analysed. By means of a greybox modeling approach, a thermal model and control framework have been set up for every house, in order to identify the load shift potential and the accompanying cost of providing flexibility for the houses. We find that thermal flexibility is asymmetric: downwards flexibility is, apart from much more dependent on outdoor temperature than upwards flexibility, strictly lower than upwards flexibility. The cost for downwards flexibility is strictly negative in terms of the prosumer. Concerning upwards flexibility, the cost is most of the time positive. Moreover, it can be concluded that there is a potentially viable business case for the flexibility aggregator

Modeling the relationship between network operators and venue owners in public Wi-Fi deployment using non-cooperative game theory

Wireless data demands keep rising at a fast rate. In 2016, Cisco measured a global mobile data traffic volume of 7.2 Exabytes per month and projected a growth to 49 Exabytes per month in 2021. Wi-Fi plays an important role in this as well. Up to 60% of the total mobile traffic was off-loaded via Wi-Fi (and femtocells) in 2016. This is further expected to increase to 63% in 2021. In this publication, we look into the roll-out of public Wi-Fi networks, public meaning in a public or semi-public place (pubs, restaurants, sport stadiums, etc.). More concretely we look into the collaboration between two parties, a technical party and a venue owner, for the roll-out of a new Wi-Fi network. The technical party is interested in reducing load on its mobile network and generating additional direct revenues, while the venue owner wants to improve the attractiveness of the venue and consequentially generate additional indirect revenues. Three Wi-Fi pricing models are considered: entirely free, slow access with ads or fast access via paid access (freemium), and paid access only (premium). The technical party prefers a premium model with high direct revenues, the venue owner a free/freemium model which is attractive to its customers, meaning both parties have conflicting interests. This conflict has been modeled using non-cooperative game theory incorporating detailed cost and revenue models for all three Wi-Fi pricing models. The initial outcome of the game is a premium Wi-Fi network, which is not the optimal solution from an outsider's perspective as a freemium network yields highest total payoffs. By introducing an additional compensation scheme which corresponds with negotiation in real life, the outcome of the game is steered toward a freemium solution

Can open-source projects (re-) shape the SDN/NFV-driven telecommunication market?

Telecom network operators face rapidly changing business needs. Due to their dependence on long product cycles they lack the ability to quickly respond to changing user demands. To spur innovation and stay competitive, network operators are investigating technological solutions with a proven track record in other application domains such as open source software projects. Open source software enables parties to learn, use, or contribute to technology from which they were previously excluded. OSS has reshaped many application areas including the landscape of operating systems and consumer software. The paradigmshift in telecommunication systems towards Software-Defined Networking introduces possibilities to benefit from open source projects. Implementing the control part of networks in software enables speedier adaption and innovation, and less dependencies on legacy protocols or algorithms hard-coded in the control part of network devices. The recently proposed concept of Network Function Virtualization pushes the softwarization of telecommunication functionalities even further down to the data plane. Within the NFV paradigm, functionality which was previously reserved for dedicated hardware implementations can now be implemented in software and deployed on generic Commercial Off-The Shelf (COTS) hardware. This paper provides an overview of existing open source initiatives for SDN/NFV-based network architectures, involving infrastructure to orchestration-related functionality. It situates them in a business process context and identifies the pros and cons for the market in general, as well as for individual actors