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Planning for OPLAN I

A few weeks ago, in a post titled Phoenix MetroNets: Rising from the Ashes, I wrote about a new Municipal Wireless 3.0 stage that I believe we've entered this summer, which I labeled "Emergent Customization," to reflect the coming diversity of metropolitan broadband business models custom-tailored to suit local area needs.

One of the foremost models that should begin to get more traction in the coming year is the Open Local Access Network or "OPLAN," which British telecom pioneer Malcom Matson of Open Planet details in this interview on Telco 2.0.

According to the International Telecommunications Union, the world currently spends around $1,600 billion a year on telecoms. Under heavy government regulation shaped by the sector itself, this money ends up with 'operators' selling us a 'service' on terms unrelated to the capital and maintenance costs of the underlying infrastructure. The question we must ask is whether we can deploy the digital technologies of 'abundance' under a radically different business model, whereby this money could deliver greater benefit by being left with end users in their local economy. Malcom Matson at OPLAN.org

More on the interview after the jump.


The nutshell definition of an OPLAN is a privately financed access network, dedicated to serving a local geographic community (anywhere from a street or business park to an entire town or city). It is open to all-comers who wish to interconnect with it. It isn't tied to a specific technology, but typically means deploying fibre access with symmetric speeds, since many users may produce more traffic than they consume.

Access outside of the local network (e.g. Internet access) is a service which is provided by a partner on top of the access network. The OPLAN itself provides no services whatsoever beyond local transmission.

Partners in developing an OPLAN are typically municipalities although Malcolm stresses that it is their covenant as an anchor tenant, committed to using the OPLAN for all its local connectivity needs, that is the key, NOT direct municipality investment. Long-term he argues that OPLANs will become owned by passive institutional investors (e.g. pension and insurance funds) as 'the new real estate,' delivering stable returns, low risk and passive investment management costs. The key defining feature of an OPLAN is the legal and financial set-up of the network which, whatever the corporate structure, prevents the OPLAN from acting like a traditional telco.

I think it's key to note that the local municipality, as well as the school district, health care providers, and other local public sector entities play a vital role in kick-starting this process. Someone has to get things started. By committing to use this type of network as a first step, these entities provide the catalyst to get a network in place, so that the market can then take over.

"Well, if it's such a great idea, how come these OPLANs aren't popping up all over?" the interviewer asks.

Malcolm responds:

OPLANs are only a 'good idea' for the mass of citizens and businesses that are not part of the global telecoms/cable TV cartel. For the latter, OPLANs are the kiss of death to their vertically integrated service-provider business models! But because these vested interests are massive corporations (and tax generators), they have the ear of public policy makers and their now, great ally the regulator, to tilt and twist the market terrain to extend their life way beyond what a true free market would otherwise permit. But I believe we will see a collapse of the service provider model and an explosion of OPLAN developments in the next decade. 'When?' precisely, will depend on the vision and political commitment of the pioneering cities who have the courage and determination to go for an OPLAN solution.

It's in your hands, all you Change Agents and Champions for a Better Tomorrow. Let's Get Going!

Posted on October 31, 2007 at 10:50 AM


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