COS Christmas Calendar

#5 Unlocking Profitability: How to Master Wholesale Pricing in Open Access Networks

Written by Maren Buchmüller | Dec 11, 2024 8:43:13 AM

"How should we think about wholesale pricing?" is a question we often get. Watch Isak walk you through the most effective pricing strategies!

 

Understanding Open Access Networks

Open Access Networks (OAN) have revolutionized broadband infrastructure by enabling multiple service providers to offer services through shared physical and operational layers. This system fosters innovation, efficiency, and community benefits by separating the ownership of infrastructure (passive layer) from its operational management (active layer) and service offerings. This structure offers municipalities and investors a sustainable way to expand connectivity while empowering service providers to innovate.

Focusing on "True" Lit Open Acces

"True" Lit Open Access is a model separating broadband networks into three layers. The infrastructure layer consists of the physical conduits and fiber, while the operations layer manages the electronics and provisioning systems to keep the network functional. The services layer enables multiple service providers to deliver various services to end customers over the shared network. This structure ensures a clear division of responsibilities and fosters a competitive environment.

Effective Pricing Strategies

The key to OAN pricing is balancing affordability and sustainability. Here are some best practices:

  • Fiber is a take-rate game! Make sure there’s an option to meet every customer's needs. Differentiated packages (e.g., bronze, silver, gold) allow providers to cater to various customer needs, increasing uptake and satisfaction.
  • Service-Based Pricing: Charge providers per service rather than per network access or pipe.
  • Fixed Fees Over Revenue Sharing: Predictable fees ensure financial stability and encourage diverse service offerings.

Competitive Pricing Without Compromise

To succeed in a competitive broadband market, network operators must strategically price entry-level services to maximize customer acquisition while offering premium upgrades to enhance profitability. Understanding local market dynamics is crucial for optimizing these strategies!

The Future of Open Access and Community Impact

Municipalities adopting OAN have reported increased connectivity, economic development, and improved quality of life. Case studies highlight the power of OAN in bridging the digital divide, especially in underserved regions, by creating sustainable, locally controlled broadband solutions.

By mastering these strategies, operators can ensure the long-term success of their networks, driving community engagement, service diversity, and economic growth.