Fiber Optic Business Models – Model 6

Co-financing of Third-Party Fiber Infrastructure; Model 7: Concession Granted to Private Company by Government Entities; Model 8: Retail + Wholesale

In this series of articles on fiber optic business models, we examine various business models for this technology and the experiences of operators worldwide. The first five models – Aggregation of Retail Demand FTTH + FTTO, Bulk Purchase Guarantee by Key Customers, Wholesale-Only, Focus on High-Quality / High-Reliability Demand, and Vertically Integrated – were discussed in previous articles. Here, we explore the final three business models.

Model 6: Co-financing of Third-Party Fiber Infrastructure

This business model involves a strategy where an entity (usually a telecom operator or investor) provides partial funding for the deployment of fiber infrastructure owned by a third party. This model allows for risk-sharing and leverages the expertise and resources of multiple stakeholders to accelerate the expansion of high-speed broadband networks.

Model 7: Concession Granted to Private Company by Government Entities

In this business model, a government entity grants a private company the rights to build, operate, and maintain fiber infrastructure in less densely populated areas. This model utilizes private sector investment and expertise to develop public infrastructure while maintaining a level of oversight to ensure public interests are protected.

Model 8: Retail + Wholesale

This business model is designed for the deployment of fiber infrastructure in marginal and low-density areas, using a dual strategy of providing retail services directly to consumers and offering wholesale access to other service providers. The aim of this approach is to maximize network utilization, distribute costs and risks, and ensure an acceptable return on investment in low-density areas.

Source:

– “FIBRE-TO-THE-HOME BROADBAND: BUSINESS MODELS AND FUTURE CONNECTIVITY,” FTTH Council Europe, [Online]. Available: [FTTH Council Europe](https://www.ftthcouncil.eu/resources/blog/guide-to-successful-ftth-business-models).