A business model for municipal FTTH/B networks: the case of rural Greece

Abstract

Purpose

In recent years, many municipalities have made investments in fiber to the home/building (FTTH/B) infrastructures to enhance the digital future of their local communities. This paper aims to propose a business model for managing these municipal FTTH/B networks. The paper also seeks to form a part of the discussion on the business, social and policy implications of municipal involvement in physical broadband infrastructures.

Design/methodology/approach

The paper reviews the international experience in municipal FTTH projects and identifies the best practices. Greece is then used as a case study due to the country's strategic plans to create efficient broadband infrastructures in the periphery of the country. Finally, the municipal business model is examined on three premises: the extent of horizontal integration; the degree of vertical integration; and the appropriate form of ownership.

Findings

The passive infrastructure model applied within the model presented has strong potentials to ensure fair and open competition. The proposed business model exhibits substantial benefits for the telecommunications industry, the local communities and the managing company. It could become an effective policy tool for future regulation, broadband universal service framework, socially optimal investments and social inclusion.

Originality/value

The paper contributes to the international debates regarding the adoption of the “highway” model (“open access”) versus “vertical integration” and the suitability of public‐private partnership (PPP) as a method for developing and operating FTTH/B networks. It also contributes to the discussion about the implications of the public sector's involvement in broadband infrastructure development.

Citation

Troulos, C., Merekoulias, V. and Maglaris, V. (2010), "A business model for municipal FTTH/B networks: the case of rural Greece", info, Vol. 12 No. 3, pp. 73-89. https://doi.org/10.1108/14636691011040495