A Business model for Public Networks

Sten Oscarsson

The business model is critical for the long time survival, investment capability, value for users, political and market acceptance of any Public Network. Key to the success in any given geographical area is the ability to solve customer needs at reasonable costs and with profits that secure financial stability.

The presentation is based on experience from designing and operating an operator neutral network in Uppsala (4:th city in Sweden), which generated a net profit of 0.3 MUSD with a turn over of 1.5 MUSD first year of operation. This practical experience is also supported with extensive experience from ongoing tenders for public networks to 120 Swedish municipals with subsidizes from the government project Broadband to all and several other similar projects in Europe.

The presentation will discuss critical components of a successful business model in public networks based on a theoretical example (not tested yet) developed for SIDA funded technology transfer program to Sri Lanka. The local conditions in Sri Lanka was studied during three visits during 2002, together 8 weeks, combined with three months of exchange studies with personal from Sri Lanka in Sweden during 2002 and 2003.