This study introduces a “Full Separation” as a new telecommunication business model in Palestine with a new telecommunication company in the active network layer of the business model. It motivates and engages the electricity utilities in the new model through the use of their infrastructure, which in turn would help in reducing the highly required investment; it introduces new technologies and services; it supports and induces the government to open doors for competition through alternative infrastructures; and it highlights the importance of the existence of a strong legal and regulatory party.
The evolution in the telecom industry with the highly increasing demand for higher capacity networks with the upcoming new applications; significant revolutions lead the global telecommunication industry to radical changes to the market structure, and to intensive challenges with the old business models and the existing regulations of the industry.
In Palestine, with the global trends toward the liberalization and opening up the competition in the telecommunication market that have been raised in the last decades, unfortunately, the fixed broadband market is still monopolistic with high entry and exit barriers; there are still lack of policies and regulations; the absence of a regulatory party; in addition to the critical situation of Palestine which increase the fears and risk for investors to enter the market. Qualitative and quantitative methods, in addition to strategic management tools with a chosen business model concept based on the global fixed broadband business models are used to come up with reliable results and a valid model.
Table of Contents
1. Chapter One: Introduction
1.1. Overview
1.2. Problem Definition
1.3. Conceptual Framework
1.4. Research Questions
1.5. Significance of the Study
1.6. Limitations of the Study
1.7. Structure of Thesis
2. Chapter Two: Literature Review
2.1. Global Overview
2.2. Business Models: As a Strategic Management Approach
3. Chapter Three: Methodology
3.1. Research Approach
3.2. Data Collection Methods and Procedures
4. Chapter Four: Situational Analysis
4.1. Telecommunication Industry Situation In Palestine
4.2. SWOT Analysis
5. Analysis & Findings
5.1. Business Models’ Analysis
5.2. Model Design
5.1.1. Service Design
5.1.2. Organization Design
5.1.3. Technology Design
5.1.4. Finance Design
5.3. Legal & Regulatory Framework
5.4. Potential Transformation in the Telecommunication Sector
6. Conclusion & Recommendations
7. REFERENCES
Objectives & Research Scope
This thesis investigates the telecommunication industry in Palestine, specifically addressing the monopolistic structure of the fixed broadband market and the absence of clear regulatory frameworks. The primary goal is to propose a new, effective business model—a "Full Separation" approach—that utilizes existing electricity utility infrastructure to foster competition, lower investment costs, and enable the introduction of advanced technologies like fiber optics to better serve residential and business customers.
- Analysis of the current Palestinian telecommunication market landscape and its limitations.
- Evaluation of global fixed broadband business models to identify a suitable alternative for the local context.
- Integration of electricity utility infrastructure to reduce network deployment barriers and investment risks.
- Design of a "Full Separation" model separating passive, active, and service layers to encourage a competitive market.
- Development of technological and financial strategies for the deployment of Fiber-To-The-Home (FTTH) and GPON-based services.
Excerpt from the Thesis
5.1.3. Technology Design
In this Section, the business model is to be described technically; both passive and active architecture are to be discussed to clearly distinguish the value proposition.
Last mile solutions are the most important part; it must be mentioned here that Drop cablings are those last meters cables that are installed in order to connect the subscribers’ houses or buildings, and they are usually of low-count fibers and are blown into ducts (D&O Committee, 2014). In case there are no ducts between the poles, manholes or street cabinets and the subscribers’ buildings; aerial solutions can be found.
Unique distribution solutions are found to the demand of FTTH deployments in the last miles, for aerial and new underground network areas, such solutions need surveys and customizations since all the network elements would be predesigned; a distribution cable is manufactured according to a specific installation area, and will have many tap points installed along its length; Pluggable Joints are internally spliced and ready to be plugged with both the tap points of the customized distribution cable and the dropping cables through pluggable connectors. Factories or suppliers for such solutions provide an online ordering system to configure and input all the parameters for customizations (The length of cable, the distance between poles and manholes, etc.). Such solutions are very powerful, especially if the main goal is to connect customers very quick and make operations much easier, but because of the planning and customization requirements, it would be costly.
Electricity utilities usually install street cabinets to feed buildings, especially in green and new constructions areas. Therefore, it is an opportunity and recommended to extend, split and isolate these street cabinets for fiber termination purposes, and thus, cabinets would be connected through ducts to the buildings and to the fiber distribution cable by an ODF. This way will reduce operations time and effort; splicing fibers would be made only once between distribution cables and dropping cables, in addition that the connection between lines and end users would be by plugging fiber patch cords cables (See Figure 5.4).
Summary of Chapters
Chapter One: Introduction: Provides an overview of the global telecommunication evolution and defines the research problem within the Palestinian context, outlining the study's framework and limitations.
Chapter Two: Literature Review: Discusses global trends, infrastructure models, and strategic management approaches relevant to the telecommunication sector and fiber optics adoption.
Chapter Three: Methodology: Details the qualitative and quantitative methods employed, including interviews and questionnaire design to assess market and stakeholder needs.
Chapter Four: Situational Analysis: Presents a deep dive into the current Palestinian telecommunication industry and uses SWOT analysis to identify opportunities and threats for stakeholders.
Analysis & Findings: Evaluates potential business models for Palestine, focusing on the "Full Separation" approach, and outlines the service, organizational, technological, and financial design components.
Conclusion & Recommendations: Summarizes the study's findings and suggests actionable strategies for stakeholders and government policy to enable a competitive market environment.
Keywords
Palestine, Telecommunication, Fiber Optics, FTTH, GPON, Business Model, Full Separation, Infrastructure, Broadband, Market Competition, Electricity Utilities, Regulatory Framework, Service Design, ISP, Network Operator
Frequently Asked Questions
What is the core focus of this thesis?
The research examines the transformation of the Palestinian telecommunication industry, specifically focusing on breaking the current fixed broadband monopoly by introducing a new business model that leverages existing electricity utility infrastructure.
Which specific areas of the telecommunication market are analyzed?
The study analyzes the fixed line, internet services, and mobile markets, with a particular emphasis on the need for fiber optics (FTTH) and improved broadband access for both residential and business users.
What is the primary objective of the proposed model?
The main goal is to transition the market to a "Full Separation" model, which separates infrastructure ownership from service provision, thereby encouraging competition, reducing investment costs, and improving service quality for end-users.
What research methodology does the author utilize?
The author employs a mixed-methods approach, combining quantitative surveys targeting both business and residential subscribers with qualitative data collected through semi-structured interviews with key industry players and decision-makers.
What does the main part of the thesis (Chapter 5) cover?
Chapter 5 covers the analysis of global business model options and the design of the proposed "Full Separation" model, broken down into service, organizational, technological, and financial design domains.
What are the primary characteristics of the recommended model?
Key characteristics include the participation of electricity utilities in providing passive infrastructure, the creation of a new, independent active network operator (NTC), and a clear legal/regulatory framework to ensure market health.
What role do electricity utilities play in the proposed design?
Electricity utilities are recommended to use their existing infrastructure, such as ducts and street cabinets, to host fiber optics, thereby significantly reducing the CAPEX required for new entries.
Why is the "Full Separation" model considered superior to the current model?
Unlike the current "Vertically Integrated" model, which creates high entry barriers, the Full Separation model enables service competition and encourages infrastructure sharing, which is more economically viable in the Palestinian context.
- Quote paper
- Yousef Massis (Author), 2015, First Fiber Optics Network Operator Using Electricity Utilities’ Infrastructure in Palestine, Munich, GRIN Verlag, https://www.grin.com/document/316691
