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Network operator intervention can prevent a price war between internet service providers on an open access network, said Roger Timmerman, CEO of UTOPIA Fiber at a Broadband Communities event Wednesday.

In an open access network, broadband infrastructure is owned one entity, which can be a network operator or a municipality or other form of cooperative governance. The network operator leases the infrastructure to internet service providers. In essence, an open access model brings competition to monopolizing incumbents to the benefit of the user, said Ben Seo from marketing firm Harrison Edwards.

An open access network empowers communities because it gives consumers the power they need to hold providers responsible, continued Seo. Because the model enables direct competition, consumers can use their dollars to demand certain services from their providers.

Although the model is touted as the “gold standard” by UTOPIA Fiber and other network operators, some commentors are concerned that the model will reduce ISPs to price-war strategies to eliminate competition and retain market share.

Price gouging “is a concern” for UTOPIA, said Timmerman. “The providers are stakeholders for us, if the providers are not successful, we have failed,” he said. The company has taken measures to ensure the long-term scalability of its providers. The ISPs on UTOPIA’s network are limited to one price change a month.

According to Timmerman, the rules have resulted in providers finding other ways beyond price to differentiate themselves and their services to consumers. In fact, the most expensive provider on its network is also the fastest growing because it has positioned itself in the public mind as reliable and trustworthy.

We need all types of providers on the network to meet the needs of all the niches of the market, he said. There are providers that focus on connecting multi-dwelling units, those that target government buildings, those that connect school systems, and others that have specialties to fit the needs of the market.

“The network operator does have the responsibility to get involved in [pricing] to protect the ISPs and assure them that they can sustain their business long-term,” agreed Greg Wilson, founder of South African open access model AEX, Automation Exchange

Open access invites innovation in the customer experience, added Seo. Instead of driving down prices unreasonably, it incentivizes providers to find ways to improve the customer experience, enhance lives, and listen to the needs of the consumer. As a result, an open access model sells the product better, he said.

Furthermore, small, local providers are drawn to open access because it alleviates them of the necessity of investing in high-cost infrastructure. In that way, they can focus on selling reliable service to the consumer, said Timmerman.

Source: Broadband Breakfast

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A company called AEX got its start in South Africa and was rather prominent at the recent Fiber Connect show in Orlando. AEX was founded about 25 years ago, doing IT services for small businesses, and it eventually moved into network operations.

“South Africa is, oddly enough, about 10 years ahead of the U.S. in fiber deployments, partially due to the fact there was a lot of copper theft. It went to fiber to prevent that,” said Greg McLaughlin, CEO of AEX. He said South Africa is, by regulation, an open-access fiber market.

Now, AEX has entered the U.S. market, and it’s eyeing all the opportunities presented by the Broadband Equity, Access and Deployment (BEAD) fund along with private investments that are also flooding the market. It particularly wants to help internet service providers with their operation support systems (OSS) and billing support systems (BSS).

Because South Africa is an open-access system, that means that multiple service providers use the same fiber infrastructure. Early on, AEX struggled to help service providers because their OSS and BSS systems couldn’t talk to each other even though they may be using the same fiber infrastructure.

Ultimately, AEX worked with ISPs to create an interoperable OSS/BSS system. The software handles such functions as provisioning, billing, rating, ticketing, fraud detection and network control over devices such as OLTs and ONTs.

AEX has set up a U.S. headquarters in Charlotte, North Carolina, with about 10 employees. The South African branch of the company employs about 200 people, and software development is still done there. It handles 500,000 active subscribers managed for about 37 ISPs.

U.S. market

McLaughlin said that in the U.S. AEX will be targeting “anybody that’s running a fiber network that we think would benefit from offloading a lot of costs.” He said new ISPs may be the company’s best targets. “Frankly, the less they know about running a network the more we can help them. As we see a push by the [Biden] administration to democratize the operation of networks, the more we can help that be a successful thing.”

AEX is not in the business of setting up a fiber network in terms of construction or deploying cables or electronics hardware. “We don’t do construction or build networks,” said McLaughlin. “But a construction company is not going to operate the network.”

The company is primarily an operations support vendor. It has a network operations center (NOC) that monitors networks and provides visibility. And it does the integrated OSS/BSS provisioning, billing and ongoing customer care.

John McLauchlin (with a similar last name as Greg McLaughlin), VP of Implementation at AEX, said, “We can tell a client, ‘You manage a construction team and a sales team, and we’ll manage everything else.' We allow clients to jump in whether they’re a team of 5 or 50.”

AEX does not require capital investment from its customers. It integrates its software into their network and gets paid per subscriber.

Back to open access

McLaughlin, the CEO, said, “Having done open access, it’s easy to do closed access. It’s just open access with a single ISP.”

And of the more complicated scenario with multiple ISPs on an open access network, he said, “We were born with open access. We’ve seen that movie over and over again for 25 years. The economic models are going to be the real challenge.”

He also said there are different business models for open access. He’s seen utilities build fiber networks where they put spare strands in the ground and then lease those strands. But they’re otherwise uninvolved. “That kind of ISP is really a closed access operator using another person’s fiber,” he said.

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ORLANDO, Fla. – AEX | Automation Exchange, the first and only OSS/BSS software platform built by network operators for network operators, today announced the addition of a new comprehensive managed services offering, providing all the technology and infrastructure a fiber operator needs to deploy and support broadband networks and connect customers in record time. These managed services include a 24/7/365 Network Operations Center (NOC), equipment supply, installation and commissioning, technical support, virtual internet service provider and service desk. With 500,000 active subscribers managed across more than 500 PoPs, AEX has a proven track record of helping networks scale rapidly.

“AEX offers network operators unparalleled scalability,” said Greg McLaughlin, CEO of AEX | Automation Exchange. “Through our comprehensive managed services and tested and proven integrated OSS/BSS software, AEX’s complete solution enables operators to efficiently plan, build, maximize, operate and support both greenfield and brownfield networks with remarkable speed.”

Automation Exchange offers a comprehensive range of equipment required for Passive Optical Network (PON) deployment, including Optical Line Terminals (OLTs), Optical Network Terminals (ONTs) and WiFi Extenders enhancing users in-home wireless internet experience. AEX can also supply street furniture housing equipment throughout the distribution network.

“Our customer-focused, certified technical experts ensure each client’s network remains secure, up-to-date and optimized, covering everything from day-to-day operations to long-term strategies,” said John McLauchlin, Vice President of Implementation, AEX | Automation Exchange. “Our tiered support structure provides efficient escalation, granting appropriate access enabling our trained professionals to deliver a superior customer experience.”

AEX | Automation Exchange’s service includes:

• Network Design: Developing a comprehensive network architecture for optimal performance
• Equipment Design & Bills of Materials(vendor-agnostic): Designing equipment setups regardless of vendor, ensuring flexibility and compatibility
• Partnership with Industry Leaders: Collaborating with Nokia, Zhone, Juniper & other respected partners
• End-to-End Solution from Customer ONT to the Internet Breakout Point: Providing a complete solution from Customer ONT to the Internet Breakout Point
• Integrated Systems: Implementing an integrated solution with tools like Halo ITSM, PRTG Monitoring, and more
• Equipment Installation, Configuration, & Commissioning: Handling installation, setup, and activation of network equipment
• Deployment of Network Management System: Implementing a robust network management system for efficient control
• 24/7/365 Network Monitoring Command Center: Operating a NOC for constant monitoring and quick response to network issues
• Comprehensive Network View: Providing a unified, single pane of glass view of the entire network infrastructure for informed decision-making
• Tier-2 and Tier-3 Technical Support: Offering advanced technical assistance for complex issues
• Multi-purpose Helpdesk: Managing sales leads, billing, and other queries to streamline customer interactions
• Sophisticated Ticketing System: Utilizing advanced systems for efficient fault and service request tracking
• Customizable Hosting Services: Tailored range of services from cabinet hosting to wholesale hosting, meeting diverse needs

AEX also offers more than network support. With Technical Helpdesk Services, it directly supports operator customers, acting as the single point for all network queries and technical issues. The Virtual ISP (vISP) solution streamlines managing internet businesses, offering functions like Broadband Network Gateway (BNG), IP addresses, IP Breakout, and dedicated support. Integration with AEX’s OSS/BSS platform simplifies onboarding and rapid deployment, providing a turnkey solution so network operators can focus on sales and customer acquisition.

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ORLANDO, August 21, 2023 – South African fiber software company Automation Exchange announced Monday here at Fiber Connect the addition of a new managed services offering that provides new software for fiber operators needs to deploy and support open access broadband networks.

“AEX offers network operators unparalleled scalability,” said Greg Mclaughlin, the company’s new CEO. “Throughout comprehensive managed services and tested and proven integrated [operations support system and business support system] software, AEX’s complete solution enables operators to efficiently plan, build, maximize, operator and support both greenfield and brownfield networks with remarkable speed.”

Mclaughlin said in a press conference that the software will allow providers to automate their systems and hand off the hard work to AEX so they can focus on building out their networks with maximum efficiency.

Jim Sanders, vice president of sales and marketing, said that the company seeks to make it as easy as possible for internet service providers to get internet out to unserved and underserved communities as fast as possible by providing solutions to minimize upfront heavy lifting.

AEX helps open access fiber network operators, which lease fiber infrastructure to deliver services to the end user. The software services offered by AEX include a network operations center, equipment supply, installation and commissioning, technical support, virtual internet service provider and service desk. Additionally, AEX directly supports operator customers, acting as the single point for all network queries and technical issues.

John McLauchlin, vice president of implementation at AEX, said at the press conference that the company’s “support structure provides efficient escalation, granting appropriate access enabling our trained professionals to deliver a superior customer experience.”

Mclauchlin added that the company’s success in helping to build open access networks in South Africa has given AEX the expertise to do the same in the United States. AEX says that its software platform talks to all different entities on the network to centralize communication and simplify the process of operating a network.

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