As per Wikipedia: An open-access network (OAN) refers to a horizontally layered network architecture in telecommunications, and the business model that separates the physical access to the network from the delivery of services. In an OAN, the owner or manager of the network does not supply services for the network; these services must be supplied by separate retail service providers. There are two different open-access network models: the two- and three-layer models.
“Open Access” refers to a specialised and focused business model, in which a network infrastructure provider limits its activities to a fixed set of value layers in order to avoid conflicts of interest. The network infrastructure provider creates an open market and a platform for internet service providers (ISPs) to add value. The Open Access provider remains neutral and independent and offers standard and transparent pricing to ISPs on its network. It never competes with the ISPs.
As per the FTTH Council Europe website:
Five main advantages of adopting Open Access business model while deploying FTTH networks:
- Open Access is a model that allows for the deployment and operation of fibre-to-the-home (FTTH) networks in a cost-efficient way. Building one infrastructure that is accessible to all service providers is in fact very cost-efficient, and has a significant impact on national coverage and market value. This cost-efficiency results from the fact that the same infrastructure is shared by all service providers, reducing the need for multiple infrastructures and saving on deployment and maintenance costs.
- The wholesale model can be very agile in administration, as there is no customer care. This means that service providers can focus on delivering services, while wholesale operators handle infrastructure maintenance and management.
- Service providers benefit from extensive coverage of the open access network without upfront investment, which makes it easier for them to provide services to customers without having to invest in expensive infrastructure.
- End-users benefit from a variety of services provided by diverse operators over the open access network. This means that customers have access to more choices in terms of services, pricing, and quality.
- Open Access drives competition of services in a very simple and transparent way. The wholesale operator does not compete with service providers, and service providers have equal terms and conditions of access. This creates equal opportunities for all service providers, promoting a more competitive and dynamic market.
