What are the benefits of open access networks?

20 Jun 2024

Jean Toomey, Enet. Image: Keith Wiseman

Enet’s Jean Toomey explains the pros and cons of open access networks, the impact AI will have on the sector and the need for Ireland to prepare for rising network demands.

Competition is important for any market to keep prices low and innovation high, but its not always easy to create a competitive environment.

In markets where infrastructure is involved, it’s possible for an industry to become dominated by only a few major providers, while smaller competitors are essentially blocked out of the market – some groups believe this is an issue in the cloud sector for example.

This can also become an issue with internet networks, but there are some options to address this issue – one of them being open access networks. This is when multiple providers sell their services over the same network infrastructure, giving more choice for consumers and opening the market to more providers.

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One person who has witnessed the growth of this concept is Jean Toomey, the customer operations director with Enet. This company is part of the Speed Fibre Group and provides an open access network that includes more than 70 providers.

Toomey has been with the organisation for nearly 17 years. In her current role, she leads a team of more than 50 professionals who deliver services and support to various retail providers.

“I see myself in a supporting role, where my primary objective is to empower my teams by providing them with the necessary support, systems and tools to excel and achieve their targets,” Toomey said.

The pros and cons of open access networks

Toomey says there are various benefits to open access networks, with a key benefit being the fostering of competition.

“This competition drives innovation as providers strive to offer the best services and technologies to attract and retain customers,” she said. “Additionally, open access networks can reduce costs for service providers by sharing infrastructure, leading to more affordable services for end-users.

“These networks also promote greater network efficiency and resource utilisation, benefiting the entire telecom ecosystem.”

But there are challenges with building an open access network, as Toomey said there are high costs in building and maintaining the necessary infrastructure. Enet invested €50m in 2022 to expand its fibre network, but saw its profits fall 47pc to €3.7m in the same year.

“Additionally, there is a risk of overbuild, where multiple networks are constructed in the same area, leading to inefficient resource use,” Toomey said. “Another challenge is the centralised thinking on network roll-out in cities, which can neglect rural and underserved areas, creating a digital divide.

“Addressing these challenges requires strategic planning and investment, as well as collaboration with government and industry stakeholders to ensure balanced network development.”

The impact of new technology

The telecoms sector has been going through significant changes with the rise of 5G, as the increased power opens the door for new opportunities and ideas. Toomey believes the roll-out of 5G technology will “likely enhance the capabilities of telecom networks” in the form of higher speeds and lower latency, which will support “more advanced applications and services”.

One of those services is the adoption of AI and machine learning technology, which have shaken up the tech sector dramatically in recent years. Toomey says this technology can optimise network management and predictive maintenance, leading to more efficient and reliable networks. She also notes that there is a need to improve services as AI technology grows.

“The rise of AI and machine learning has significantly increased the demand for higher bandwidth, leading to the widespread adoption of 100GB networks,” she said. “These technologies require substantial data processing and real-time analytics, driving the need for faster and more reliable network infrastructure.

“As technology continues to evolve, Ireland will need to start looking towards 400GB and beyond to meet future demands. This shift will be crucial in supporting the next generation of data-intensive applications, ensuring that our network infrastructure remains robust and capable of handling increasing data loads.”

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Leigh Mc Gowran is a journalist with Silicon Republic

editorial@siliconrepublic.com