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JON Exchange. Where broadband comes together. Today’s network. KCom. Openreach. Virgin Media. Tomorrow’s patchwork – Today!. Manchester. Angus Glens. Hull. Cardenden. Fibrecity Dundee. Baltic Quarter. Alston. WWHC. Fibrespeed. County Durham. KCom. Digital Region. Openreach.
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JON Exchange Where broadband comes together
Today’s network KCom Openreach Virgin Media
Tomorrow’s patchwork – Today! Manchester Angus Glens Hull Cardenden Fibrecity Dundee Baltic Quarter Alston WWHC Fibrespeed County Durham KCom Digital Region Openreach Virgin Media Derby Walsall Lace Market Birmingham East Nottingham Bristol Fibrecity Bournemouth 2012 Corby Cornwall Quintain Ashford Bradnet
The “Big 6” ISP’s have more than 90% of the UK market Scale Matters!
The Big ISP’s. . . Already have around a fifth of any available market From a singlesource Anythingelse adds cost & complexity
This works! … for them at least
This doesn’t! … for them or anyone
This could! … for everyone!
This could! Joint Open Network Exchange … for everyone!
JON Exchange Manchester Oxford Road • 1 market-place • 1 set of interface specifications • 1 set of tradable assets • No controlling interests Gateshead Gti FibreSpeed Open Marketplace DurhamNet • Meeting place for • Middle-mile services • Peering & transit • Backbone connectivity • Managed platforms BMEX NYnet Digital Region
Two key words LIQUID Fungible • Liquidadj (finance) fluid: in cash or easily convertible to cash; "liquid (or fluid) assets" • Fungibleadj (law) of goods or commodities; freely exchangeable for or replaceable by another of like nature or kind in the satisfaction of an obligation.
Past attempts • Failed to identify tradable fungibleassets • Bandwidth is not fungible • Tried to create secondary marketswithout a primary spot market • Future bandwidth trading needed a primary spot market
An Open Market • Fungible & Liquid • Standards adopted from COTS & NICC • Maintenance & evolution by market members in line with standards bodies
ALA: A break from the past Games on Demand Content Delivery Networks New Media Services Public Services Remote Internet ISP Email Web Voice IP Access BT Local Network Provider – BT, Fibrecity, Eurofiber, Onestream. . . . Line Access Line Access Customer
Wholesale Model Service Provider Network Provider The Market • The Market will log transaction information • For Ofcom • For the Ombudsmen • Seeking to create an open & fair telecoms marketplace • Pro-forma market “contracts” • Offer & buy price mechanisms • Settlement system leading to a market set “spot price” • Standard interface
Thoughts on a secondary market Future Option Capacity Planning = Supply-side Demand-side Forward dated contracts to buy network services • NHS tele-care patients, LEA school children, housing associations, communities • Network builders could take the contracts as anchor tenants and collateral
Summary - Why this can work • Fungible assets • Not based on bandwidth • Metre of duct, metre of dark fibre, a wavelength, a VLAN • Each asset is sufficiently homogenous to compare, and different enough to generate market choices • Liquidity • European scale • Transition conditions until experience & scale are sufficient • Market operation will lead to a fluid, fair market
Summary - Next Steps Aiming for operation in Q4 this year • Trading Platform • Interface system • Trading & settlement • Technical/Operational Standards • NICC & BSG/COTS • INCA • European Governance structure
Thank you! Adrian Wooster awooster@jon-exchange.net www.jon-exchange.net