An open platform How FTTH networks can stimulate the creation of new services

Supported by:

Gerlas van den Hoven CEO, Genexis

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Life is changing 20th vs 21st century

An open platform

Workers Everyone vs

Things Content vs

Planes, trains & automobiles Bits, bytes & fiber vs

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3

Life is changing An open platform

Fiber is the foundation of the 21st century

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Today’s problem

•  Operators cannot see beyond today’s internet

•  A flat-fee model:

An open platform

WWe’re stuck!

1.  Delivery of more bandwidth does �not lead to more revenue growth

2.  No room to invest

3.  Must protect market to remain�in business

4.  Bundle access & content

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5

How to break this vicious circle? An open platform

NEW SERVICES! So… where are they?

•  We expect to find new services around the corner

•  This is a naïve way of thinking

•  An active approached is needed

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6

A lesson in basic marketing An open platform

Don’t push, create pull

Local content Healthcare Energy

These opportunities are not yet happening…

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An example of new services Remote healthcare

An open platform

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These guys really show what you can do with fiber

Live remote surgery in Cleveland, USA, passed over a fiber network

http://www.youtube.com/view_play_list?p=069A47343108A96D

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What are we doing wrong? An open platform

We are selling the wrong thing

We are packaging it in the wrong way

1

2

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We live in the 21st century… A different mindset is needed

An open platform

vs

Fear vs Opportunity

Single provider vs Multi-provider

Content bundled with access vs Services independent from network

Closed protocols & proprietary vs Open protocols and standards

Aimed at locking in the customer vs Creation of a dynamic market

Closed economy vs Open economy

Equipment lock-in vs Interfaces & modularity

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Two flaws, two solutions An open platform

We are selling bandwidth 1

We are packaging it in closed networks 2

So… what are the solutions?

We need to sell CONNECTIVITY

We need OPEN NETWORKS

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Product and platform Smart phone example

An open platform

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Connectivity & open FTTH networks An open platform

Service

Active network

Passive network

Network elements:

How it works in the Netherlands:

A closed model:

Service

Active network

Passive network

Service

Active network

Active network

Passive network

Service Service

Service Service

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S

Service

Make the connections accessible! © Copyright Genexis | All Rights Reserved

Passive network

An open network:

Service

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An open platform

There is one element missing…

But…

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The end-user

Three is company An open platform

We have a product

We have a platform

Connectivity

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Open networks

But we miss a customer…

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Your home is at the center An open platform

•  The user creates the content

•  The user creates the demand

•  The user has individual expectations

•  The user makes the choice

•  The user pays the bill

The end-user is the most important element

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But we have to make it easy!

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Meet the user! The interface to the user is crucial

An open platform

Easy to install

For everybody

Intuitive

Sustainable in its use

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17

Meet the user! The interface to the user is crucial

An open platform

Easy to install

For everybody

Intuitive

Sustainable in its use

“Click-on” and it works

Every service on every layer is possible

Easy to use, powerful in its possibilities

“Green”, long life cycle

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Conclusion An open platform

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•  Traditional networks view the user as a cost factor in the business case�

•  FTTH creates an opportunity: �sell connectivity in an open network environment�

•  The user now becomes the source of new revenue, and the key to the creation of new services

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Conclusion An open platform

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Always Connected

Thank you

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