Roger Björk, Sales Development Director for Ericsson Networks, says the business case for fiber deployment should look for opportunities in three layers – the passive infrastructure, active infrastructure and services – which can be used in any combination in a business case.

Björk says the passive infrastructure includes the dark-fiber network, ducts, radio sites, buildings and street cabinets; the active infrastructure includes access to wholesale bandwidth and services, and business and operations systems; and service and applications provides services such as IPTV and broadband to the end user.

The most common approach, in which the operator deploys and operates all layers, is giving way to innovative business cases operating in one or two layers. “The layered approach enables network-sharing or leasing activities, which can level the playing field for a diverse range of entrants to the high-speed broadband market,” Björk says.

Ericsson’s layered approach provides the starting point for a holistic business model, which supports an all-IP environment and converged fixed and mobile services. “There are a lot of different ways to move an operator into a position where they have an impact on the value chain,” he says.

“Deep fiber offers you the potential to offer new types of services, such as IPTV, or you can open up the network for wholesale, creating revenue streams from other service providers. For mobile operators, a deep-fiber network can be used for mobile backhauling.”

Operators in the passive layer are responsible for the design and build-out of the fiber network, which poses risks, Björk says. Such issues as construction costs and “unbundling” regulations that require operators to share their network with competitors can dampen a business case. He says that for the last 10 years, Ericsson has been engaged on telecom operators’ behalf to minimize the upfront risk and capital expense of building a passive fiber network.

“We have worked with regulators to provide our customers with the tools to handle bundling or unbundling mandates,” Björk says. “We have innovative methods for laying fiber. We can facilitate joint ventures and partnerships with utilities and local governments in order to reduce the risk for investors.

“We come into these situations with understanding. We know how to play this game.”

Björk says Ericsson is not only one of the most experienced consultants for business models in high-speed broadband revenue growth, but one of the few players that have a full service broadband architecture for converged fixed and mobile service. Fiber is essential for a converged service offering, Björk says. “It’s going to make High-Speed Packet Access (HSPA) and 3GPP Long-Term Evolution (LTE) happen. And it will make high-definition personalized, interactive content to the home possible.”