1. Center for Tele-Information Reza Tadayoni & Knud Erik Skouby, NREN Workshop, 4 – 5 February 2003 Slide number: 1 Alternative Networks NREN Workshop: 4 – 5 February 2003 Noordwijkerhout, The Netherlands By Reza Tadayoni* & Knud Erik Skouby** Center for Tele-Information Technical University of Denmark *Assistant professor at Center for Tele-Information, e-mail: reza@cti.dtu.dk ** Professor in Economics and Regulation of Telecom and the director of Center for Tele-Information, email: skouby@cti.dtu.dk.

2. Center for Tele-Information Reza Tadayoni & Knud Erik Skouby, NREN Workshop, 4 – 5 February 2003 Slide number: 2 D3 Report What are alternative networks? Why alternative networks? Network architecture The deployed technology The organisations and the ownership structure The funding and business models Final remarks Overview

3. Center for Tele-Information Reza Tadayoni & Knud Erik Skouby, NREN Workshop, 4 – 5 February 2003 Slide number: 3 The D3 Report contains an analysis of alternative networks based on case studies (incl. Canada, Japan, Switzerland & USA) The case studies and the analysis are input for broader discussions in the project. This presentation is an overview of findings with reference to the cases. D3 Report

4. Center for Tele-Information Reza Tadayoni & Knud Erik Skouby, NREN Workshop, 4 – 5 February 2003 Slide number: 4 Alternative networks differ from traditional networks in: –The structure and architecture of networks –The organisation and ownership structure –The business model and funding Traditional Networks in this project are Research and Education networks What are alternative networks?

5. Center for Tele-Information Reza Tadayoni & Knud Erik Skouby, NREN Workshop, 4 – 5 February 2003 Slide number: 5 Important parameters influencing the emergence of the alternative networks are: –General liberalisation of the market –Technological development –The decreasing cost of establishing network infrastructures And Changes and differentiation in the usage patterns call for non-traditional networks, structured for specific usage without the best effort paradigm Why alternative networks? (I)

6. Center for Tele-Information Reza Tadayoni & Knud Erik Skouby, NREN Workshop, 4 – 5 February 2003 Slide number: 6 Why alternative networks? (II) Source: Cess de Laat, Surfnet, presentation at SERENATE workshop at La Hulpe

7. Center for Tele-Information Reza Tadayoni & Knud Erik Skouby, NREN Workshop, 4 – 5 February 2003 Slide number: 7 The idea behind the new network architectures is generally to establish different network services for different users. This is very evident in the case of super SINET in Japan: high capacity demanding users have access to super high capacity. Network Architecture (I)

8. Center for Tele-Information Reza Tadayoni & Knud Erik Skouby, NREN Workshop, 4 – 5 February 2003 Slide number: 8 Network Architecture (II)

9. Center for Tele-Information Reza Tadayoni & Knud Erik Skouby, NREN Workshop, 4 – 5 February 2003 Slide number: 9 Dark fibres seem an efficient infrastructure technology for networks in small geographical areas, cf. both Canadian and Swedish cases. Also wireless microwave links are appropriate. For long distance connectivity LAMBDA technology is appropriate The deployed technology

10. Center for Tele-Information Reza Tadayoni & Knud Erik Skouby, NREN Workshop, 4 – 5 February 2003 Slide number: 10 A paradigm shift in many alternative networks: the telecom operator is bypassed and the user have end-to-end control of the networks. Larger networks tend to have a third party provider facilitating maintenance of the infrastructure. Part (or the whole) of the spectrum in the transmission lines (Lambdas) is leased or owned The organisations and the ownership structure

11. Center for Tele-Information Reza Tadayoni & Knud Erik Skouby, NREN Workshop, 4 – 5 February 2003 Slide number: 11 If a user has end-to-end ownership and control of a network the funding is based on charging for regular operation and maintenance of facilities in the organisation If different users own the same network a variety of models can be used. In the Canadian discussion a condominium model known from apartments is suggested. The funding and business models

12. Center for Tele-Information Reza Tadayoni & Knud Erik Skouby, NREN Workshop, 4 – 5 February 2003 Slide number: 12 Final remarks (I) Our case studies show emerging customer empowered networks, both regional and country wide The non-monolithic network architecture approach is one of the drivers in the development Alternative business models as the condominium model known from apartments are suggested. The organisation and architecture of the network implies that the users include new competencies in their organizations.

13. Center for Tele-Information Reza Tadayoni & Knud Erik Skouby, NREN Workshop, 4 – 5 February 2003 Slide number: 13 Final remarks (II) At (technical) universities the network competencies are available – in other institutions? There are, however, good reasons to believe in the success of the alternative networks: –the process can be characterized as extending the LAN to MAN and WAN and this will reduce the complexity of different networks layers, reduce the number of components in the network extend the success of the LANs into wider networks.