Open Fiber’s €3.5?bn fiber based broadband network
Congratulation to the management of Open Fiber (OF) and all banks supporting this landmark project. I would like to thank all stakeholders for having selected Arthur D. Little for supporting this endeavor in financing the business plan, which was announced publicly on Friday, 3rd August 2018 (https://bit.ly/2LVbSV3). This exceptional funding in the history of telecommunication will create an open access fiber infrastructure to deliver new ultra-broadband connectivity with speeds as high as hundreds of megabits to homes and enterprises. For more details please refer to the Reuters article (https://reut.rs/2KuF92V).
This is a major structural change in the telecommunication market and will push telecom operators to rethink their business models - in particular in the context of wholesale and whole-buy strategies. Last but not least, obtaining this funding will not only secure a future proof fixed infrastructure for Italy, but also enable Italy to leapfrog future 5G infrastructure. This will assist mobile operators to focus their future investments on 5G radio access, while the backhaul and backbone can be delivered by this nationwide fiber infrastructure. This is my personal prediction. The future will soon tell if such a move will have collateral benefits to mobile operators.
3 years ago, I had posted another bold move in the industry: “Breaking news: 1st worldwide voluntary structural separation”, at that time many were surprised by this move and I had multiple debates in the industry (still ongoing), for more details visit the link (https://bit.ly/2Oa5fuq). Now we start to see further structural changes after O2 CZ pioneered this initiative (e.g. TDC … ) also follow separation driven strategies. I believe that the financing of Open Fiber, as an independent infrastructure player in Italy, will stimulate similar spin-off of infrastructure units of telecom operators into independent and stronger infrastructure players in their respective markets.
I wish the management of Open Fiber all best for executing the strategy. This strategy will for sure be analyzed on the radar screens of CEOs globally, beyond the borders of Italy given the nature of this landmark structural transformation :-)
I'd appreciate readers feedback !
TMT Executive, Investor, Advisor
6 年Very interesting and inspiring. In the industry plagued in the past by controversial capital (value destructive) allocation strategies finally an example of common sense and?financial logic. Open access fiber infrastructure will impact both on the speed of developemnt of mobile networks but also on competitive dynamics in fixed. Good news for Italian market.
ICT & Digital Transformation Professional
6 年Good work Karim & wish success with this and future endeavors. There is no prediction for future here . Fiber to homes or businesses is now necessity . Mobile Operators will for sure gain significantly but one feel sorry for fixed and incumbent operators who still waiting and weighing donating the opportunity to somebody else . In Saudia, likewise Saudi Electric company is also laying fibre to homes challenging many operators . Again case of voluntary donation .
Advisor. Investor. NED
6 年Congratulations Karim and the team! I believe this will be a beacon for other markets and players. I am sure this is the way forward, and hope more market participants realise they can share infrastructure intelligently with this wholesale/buy model. I look forward to seeing you get this into some of the M. Eastern markets soon!
Congratulations to ADL and all stakeholders in this initiative! It will contribute to the fiber take-off in Italy, key for the convergent offers
Chief Operating Officer, Sure Group
6 年well done Karim and ADL. surely some hard work behind the scene and look forward on how this is going to morph in not so distant future! other jurisdictions would likely learn from this case...