The Changing Role of Wholesale in Next-generation Access
Carriers in countries around the globe are rolling out next-generation access (NGA) networks in order to provide high-speed broadband services to the population. Their aim is maximize the availability of broadband-based services, and to exploit the new revenue streams that those services will open up. However, this will not be possible until the wholesale market has resolved a number of significant challenges.
Executive summary
In a nutshell
Ovum view
Key messages
NGA network costs necessitate network sharing
NGA deployment increases opportunities for wholesale revenues
Non-traditional players are an opportunity, not a threat
Importance of wholesale–retail separation
Wholesalers must be attentive to customer needs
NGA regulation needs to be flexible and innovative to match differing circumstances
NGA presents challenges and opportunities for wholesale
Common wholesale themes in NGA development
Network ownership is not the differentiator it once was
High costs of NGA encourage network sharing
Wholesaling NGA presents opportunities that can offset costs
The entry of non-traditional players
How wholesalers should respond to the NGA opportunity
The wholesalers’ role as a neutral party
Demonstrating neutrality
Wholesale–retail separation is a necessity
Structural, functional, or accounting separation?
Arguments for and against shared access
Longer value chains and thinner margins
Anchor tenants to justify rollout in less dense areas
The necessity of clear service migration paths
Wholesale pricing is an important issue
Cooperation to mitigate NGA network fragmentation
The need for flexible wholesale NGA regulation
More pragmatism, less prescription
Appendix
Research methodology statement
In a nutshell
Ovum view
Key messages
NGA network costs necessitate network sharing
NGA deployment increases opportunities for wholesale revenues
Non-traditional players are an opportunity, not a threat
Importance of wholesale–retail separation
Wholesalers must be attentive to customer needs
NGA regulation needs to be flexible and innovative to match differing circumstances
NGA presents challenges and opportunities for wholesale
Common wholesale themes in NGA development
Network ownership is not the differentiator it once was
High costs of NGA encourage network sharing
Wholesaling NGA presents opportunities that can offset costs
The entry of non-traditional players
How wholesalers should respond to the NGA opportunity
The wholesalers’ role as a neutral party
Demonstrating neutrality
Wholesale–retail separation is a necessity
Structural, functional, or accounting separation?
Arguments for and against shared access
Longer value chains and thinner margins
Anchor tenants to justify rollout in less dense areas
The necessity of clear service migration paths
Wholesale pricing is an important issue
Cooperation to mitigate NGA network fragmentation
The need for flexible wholesale NGA regulation
More pragmatism, less prescription
Appendix
Research methodology statement
LIST OF TABLES
Table 1: Network infrastructure sharing options
Table 2: Network access infrastructure sharing: pros and cons
Table 1: Network infrastructure sharing options
Table 2: Network access infrastructure sharing: pros and cons
LIST OF FIGURES
Figure 1: Horizontal specialization in next-generation access
Figure 1: Horizontal specialization in next-generation access
