A quite innovative communications business model is emerging in Singapore. At an industry event last week I saw some very interesting presentations on the government led initiative to provide an open access, common communications infrastructure that could be used by multiple service providers. Two independent companies are being set up - one call Netco will be responsible for putting in place a core transport network, while the other called Nucleus Connect will be responsible for setting up the full operations infrastructure. This whole thing is funded by the Singapore government to the tune of around S$4bn investment and will provide open interfaces to any service provider who wants to leverage that infrastructure to provide their own customer facing services.
This is interesting for two reasons. Firstly, there is a strong argument that innovation in communications services is constrained due to the fact that only the network operator has full access to all the core network and back office systems interfaces. By making these truly open to the thousands or tens of thousands of niche service providers we should see an explosion of innovation and a staggering array of new innovative services. Doing this from a green field scenario is obviously alot simpler than reverse-engineering it into an established network operator (which is something that a number of the leading incumbents are trying to do!)
Secondly, this very neatly gets around the whole net neutrality argument. If the government is willing to take over responsibility for investing in the core infrastructure, then all the net neutrality arguments evaporate. Of course, doing this in a relatively small country like Singapore is a completely different proposition than doing it in a country like the USA. However, it does show that there may be a commercially sensible way through the net neutrality minefield and I suspect that the model will be closely watched and if it works will be rapidly replicated in a number of smaller countries.
Keep your eye on this one!
Posted
10-19-2009 7:15 AM
by
Martin Creaner