Axia Netmedia: Successfully Enabling the Digital Economy in Canada
Executive Summary
Axia sells Real Broadband™ and passive services on Next Generation Networks that have implemented the Axia NGN Solution. The Axia NGN Solution has been implemented in Alberta, France and Singapore.
Next Generation Networks transform the way we work, learn, communicate, shop, find information and entertain ourselves and our families. The momentum surrounding NGNs continues to grow as governments conclude that their global competitiveness and long-term socio-economic development depends on ubiquitous digital connectivity.
Axia will demonstrate through the course of this consultation how the Government of Alberta (GoA) took a visionary step toward creating a viable partnership to deliver Next Generation broadband on a large jurisdictional basis. By enacting a Public Private Partnership structure with a long-term character on a wholesale basis, the GoA ensures that end user prices and bandwidth services remain competitively positioned in the marketplace. This same model is a viable solution for Canada on a national basis.
Axia created its value proposition by strategically combining modern technology with a business approach that creates the best result for end users. Its approach is based on creating a sustainable value chain of industry players that each excel at delivering their core competency. Axia has proven that this approach works in the rural/remote sector through Alberta's SuperNet; in medium-density regions in France; and in a high-density metropolitan city network in Singapore.
There are six fundamentals that Axia considers critical to a successful and sustainable NGN:
- It is critical to separate NGN transport services from web services. Axia will deliver high-performing, robust bandwidth services to enable web services such as Software as a Service, Cloud Computing, sensor technologies, Facebook, Google, VoIP, YouTube and Yahoo.
- Axia does not compete with its customers. By eliminating this conflict of interest, Axia addresses the fundamental flaw of the traditional telco approach; that being the profit interest of the traditional telco is against the success of its wholesale customers who are also its competitors in the web services sector.
- Axia provides Real Broadband™ services, which give our customers the ability to quickly and reliably exchange large amounts of audio, data and video with guaranteed connectivity levels. Unquestionably, these high-performing transport services add value to businesses of any size, individual end users and governments.
- The NGN must have static pricing on a network-wide basis. The price of Axia NGN transport services does not differentiate. This approach to pricing helps bridge the digital divide, eliminating the distance and market size challenges that limit end users' access.
- The Axia NGN Solution is flexible for implementation in any jurisdiction.
- The Axia NGN Solution creates a sustainable value chain of industry players that each excel at delivering their core competency without the conflict of competing with their customers.
Submission
1.0 Introduction
Axia provides Real Broadband™ and passive services on Next Generation Networks (NGNs) that have implemented the Axia NGN Solution. The Axia NGN Solution has been employed in Alberta, France and Singapore.
Axia's expertise is in the operation of NGNs where we ensure end users are provided choice of services in the continually emerging independent IP services sector. We connect multiple service providers to reach as many institutions, businesses, communities and residents as possible.
Next Generation Networks transform the way we work, learn, communicate, shop, find information and entertain ourselves and our families. The momentum surrounding next these future proof networks continues to grow as governments conclude that their global competitiveness and long-term socio-economic development depends on ubiquitous digital connectivity. As much as railways and roads became critical infrastructure in the previous century, broadband is widely recognized as the foundation for high-performing economies during this century.
Network engineers now have access to technology that creates the connectivity that enables essentially any end user service requirement. Uncompromised digital connectivity is in demand to enable individuals, teams and organizations to compete in a modern economy whether they are in the private or public sector. While important, the challenge is not in developing the technology, it is in applying it through a business approach that creates ubiquitous connectivity and provides a choice of services to end users.
Today, the telecommunications sector is dominated by fully integrated telecommunication companies and cable companies who were founded on a regulated utility approach focused on voice and television services respectively. This approach, referred to as the traditional telco approach, compromises both performance of the network and choice of services to end users. The Axia NGN Solution challenges the traditional telco approach.
The Government of Alberta (GoA) took a visionary step toward creating a viable partnership to deliver Next Generation broadband on a large jurisdictional basis. By enacting a Public Private Partnership structure with a long-term character on a wholesale basis, the GoA ensures that end user prices and bandwidth services remain competitively positioned in the marketplace.
Axia has demonstrated via the Alberta SuperNet, the optimal approach from a technical, business, coverage and policy objectives point of view on a global basis.
2.0 Axia's NGNs Around the World
2.1 World Leading Rural Network: Alberta's SuperNet
The Government of Alberta had a vision to make global connectivity available to all Albertans, whether they lived in rural or urban areas. Thanks to the Axia NGN Solution, Alberta's SuperNet was created and has been in operation since 2005, connecting 429 communities across Alberta's more than 661,000 square kilometres.
Axia designed and operates Alberta's SuperNet network through its wholly owned subsidiary, Axia SuperNet Ltd. Axia delivers Real Broadband™ services directly to over 4,700 government locations, including 2,234 learning facilities, 345 libraries, 517 health facilities and 1,438 government facilities. The SuperNet consists of 13,000 kilometres of fibre optic network and 2,000 kilometres of wireless network connecting more than 6,000 electronic devices.
Axia sells Real Broadband™ services to local access customers in 298 communities in rural Alberta. By doing so, Axia fosters a vibrant and competitive environment for local access customers who want to deliver ultra-high-speed services to end users. As of March 31, 2010, we had 76 local access customers in 298 communities with an aggregated total of 763 active connections. Prior to the SuperNet, Alberta's rural communities only had dial-up access and any hope of IP connectivity was either very cost prohibitive or technically out of reach. At that time only a few high-speed service providers operated outside of the metropolitan centres of Calgary and Edmonton. Now because of the SuperNet 88% of Alberta's population has access to high speed connectivity.
In June 2005, Axia was granted a ten year renewable licence from the Government of Alberta to operate and provide services on the SuperNet throughout Alberta. The SuperNet business is comprised of Axia-owned assets complemented by assets licensed from the Government of Alberta.
The Government of Alberta is Axia's prime customer on Alberta's SuperNet. Their committed use of the SuperNet's leading infrastructure allows for a sustainable business model that brings unprecedented low prices, for the highest quality service, to every corner of the province.
2.2 World Leading Regional Network: France's Covage
The Government of France believes that ubiquitous broadband Internet access is critical national infrastructure and has implemented a policy framework that supports building open and competitive IP networks. This is the right framework for Axia's solution to succeed. In 2006, we formed Covage, a French company jointly owned by Axia Networks France, a wholly owned subsidiary of Axia, and our French partner, VINCI Networks (VINCI), a wholly owned subsidiary of VINCI Construction France.
Covage is involved in the acquisition, design, development, operation and ownership of public IP-based NGNs in France. To date, Covage has interests in 15 public initiative networks that provide network services to a population of over 4.77 million. All of these public networks were awarded through separate public tender processes. It is anticipated that Covage will continue bidding for additional public networks as regions take their networks to market, and if successful, additional networks will be added to Axia's growing portfolio in France.
2.3 World Leading FTTP Metropolitan Solution: Axia's Singapore Business - OpenNet
OpenNet is building an open access Next Generation National Broadband Network, providing fibre and access to broadband services to 1.5 million premises: essentially every residence and business in the city. The Singapore solution is the first comprehensive metropolitan fibre to the premise deployment and demonstrates that compelling prices, performance and choice can be achieved using Axia's NGN Solution. The Singapore government has demonstrated its commitment to creating a nationwide fibre optic network by committing $1 billion Singapore dollars toward the creation of the network.
Axia has proven that its approach to implementing these new next generation networks meets visionary public interest requirements and provides compelling value and performance in a modern metropolitan city. Singapore has set a new standard for infrastructure in the Knowledge Economy.
2.4 International Summary
Axia created its value proposition by strategically combining modern technology with a business approach that creates the best result for end users. Its approach is based on creating a sustainable value chain of industry players that each excel at delivering their core competency. The result will drive transformation to markedly improved performance, lower cost and increased choice to end users. Axia has proven that this approach works in the rural/remote sector through the Alberta SuperNet; in medium-density regions in France; and in a high-density metropolitan city network in Singapore. As a result of our success in Alberta, France and Singapore, Axia is pursuing potential NGN opportunities in other jurisdictions around the world.
3.0 Axia's NGN Solution
Axia has created a value proposition by strategically combining modern technology with a business approach that creates the best result for end users. Axia's NGN Solution is comprised of the following key elements to achieve the best result for end users:
3.1 Separate Next Generation Network Transport Services from Web Services
Axia's NGN Solution separates transport services from web services. This is unlike the traditional telco approach, which does not separate transport services, compromising the end users' choice of suppliers for services. The diagram below depicts this separation:
The Axia NGN Solution ensures that end users benefit from being able to choose suppliers of their choice without being limited by network performance because all the services that an end user experiences (e.g. voice, video, data, traditional web) are provided by service providers specializing in those services within a sustainable free competition environment.
3.2 Axia Does Not Compete With its Customers
Axia does not compete with its customers. This creates an environment of sustained competition and choice of services for end users. The success of the Axia NGN Solution is based on this key principle. By eliminating this conflict of interest, Axia addresses the fundamental flaw of the traditional telco approach; that being the profit interest of the traditional telco is against the success of its wholesale customers who are also its competitors in the web services sector.
3.3 Axia Provides Real Broadband™ Services
Axia provides uncompromised transport services on the NGN which we refer to as Real Broadband™. Real Broadband™ services give our customers the ability to quickly and reliably exchange large amounts of audio, data and video with guaranteed connectivity levels. Unquestionably, these high-performing transport services add value to businesses of any size, individual end users and governments.
3.4 Level Playing Field Pricing
The price of Axia NGN Transport Services does not differentiate; it does not matter who the customer is, how big they are or where they are located. This approach to pricing helps bridge the digital divide, eliminating the distance and market size challenges that limit end users' access.
The Axia NGN Solution delivers Axia NGN transport services to residents of rural, regional and metropolitan communities on a level playing field and is comprised of two fundamental components:
- The Community Interconnect Grid (CIG): This is a fibre grid throughout a jurisdiction that interconnects all communities to at least one global gateway for access to web services.
- Local access connectivity: Our solution provides for the optimal evolution of both wireless and fibre to the premise (FTTP) local access technologies within CIG communities.
3.5 Flexible and Adaptable for Implementation in any Jurisdiction
The Axia NGN Solution is flexible in terms of partnering with governments and addressing the regulatory environment. Combined with the above components, the Axia NGN Solution can be implemented in any progressive jurisdiction.
3.6 The Axia NGN Value Chain
The Axia NGN Solution creates a sustainable value chain of industry players that each excel at delivering their core competency without the conflict of competing with their customer. The result is a transformation to markedly improved performance and service, lower cost and increased choice to end users.
The Axia NGN Solution is fully compatible with the continuing transformation of the Information and Communication Technology (ICT) sector which is increasing the demand for NGN services. Key ICT players driving this transformation are focused on four fundamental strategies: (1) advanced mobility services; (2) Cloud Computing; (3) Software as a Service; and (4) the availability of low cost computing devices to compete with PC and related products. Axia, by not competing with these customers, supports the successful emergence of these strategies and resulting benefits to end users.
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Guylaine Verner
Industry Canada | Industrie Canada
300 Slater Street, Ottawa ON K1A 0C8 | 300, rue Slater, Ottawa ON K1A 0C8
Guylaine.Verner@ic.gc.ca
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