Resource-sharing through collaboration

Telcos and electric power companies are parallel industries that provide completely different services, but there’s ample room for them to work together.

Telcos need to step up investment in fiber optic networks to grow their businesses and provide universal broadband. Today, 50 percent of households aren’t connected to broadband and only 10 percent of those who are connected have access speeds above 25 Mbps. Historically, telcos have been unwilling to invest because of the long payback period for fiber optic fixed-line broadband.

At the same time, some power companies are looking at how to expand the use of their power networks, which already reach thousands of households. Smart homes and services like home broadband access and video services are a great choice. At the end of 2016, the Norwegian power company Lyse launched Europe’s first 4K UHD television service though the subsidiary Altibox over a new-generation video platform and an all-optical network covering the whole of Norway. By providing millions of families in the country ultra-HD video services, Lyse transformed from an energy provider into a home broadband and video content operator. 

Collaboration is a must. More telcos and power companies are choosing to cooperate to accelerate broadband network deployment. In one case, Sichuan Telecom harnessed electricity poles to construct its all-optical network by attaching fiber optic cables to them, reducing costs and accelerating deployment.

In Southeast Asia in 2016, three operators spearheaded an industry alliance comprising 17 members, including representatives from government, real estate, property, fiber optic, equipment vendors, content providers, and water and electricity infrastructure providers. By strengthening collaboration, the alliance increased members’ inclination to construct broadband. This model can solve challenges encountered during fixed-line broadband network construction process, forming an ecosystem for broadband construction that shares costs and benefits.

To create a truly sustainable digital future world, multi-party collaboration is a wise choice.