Dark fibre trailblazer Exa Networks and training company Copper Road UK show what is possible for CPs once they've seen the light.
Strategically, the move into dark fibre was a natural next step for Exa Networks and an evolution of the company's existing business model. Far more revolutionary are the great strides that have been made in how Exa Networks leverages dark fibre and the upsides are truly transformational for customers and channel partners. Until now there have been few if any dark fibre procurement options for companies such as Exa, due to scarce availability and high costs. But alternative pure fibre infrastructure providers such as CityFibre have unlocked the pent up potential for limitless capacity and end-to-end network control for smaller players with big ambitions.
"As an ISP we've been delivering connectivity services and content filtering into the business and education market for 14 years," explained Mark Cowgill (pictured), co-founder and Director, Exa Networks. "Although we have done well, we had no option but to use the same national and local infrastructure with the same restrictions as every other ISP. But running dark fibre and our DarkLight service is a game changer for us and our customers. It's not just opened new doors, it's kicked them off their hinges. Potential customers or partners we'd been trying to talk to for years, who simply wouldn't take our calls, suddenly came knocking on our door when we launched DarkLight. We have gone from being a competitor to a market leader with an offering that other providers simply cannot match."
To prove the point Cowgill cited two of examples. The price for Gigabit connectivity in the UK (for instance 1Gbps on 1Gbps leased line) is on average circa £13,000 per year. Exa's Gigabit on DarkLight is a mere fraction of that figure. "Another great example of dark over lit for customers is that if you take, for instance, a 100Mbps leased line on a 100Mbps bearer, if for any reason you needed to increase bandwidth for a couple of days (for example, a conference at a hotel) to 2Gbps, it is simply not possible. The customer would have to order a new 10Gbps line months in advance and then commit to the bandwidth and the line for a minimum of one year.
"On our DarkLight service, if a customer finds themselves in this situation they can give us a call and get a temporary increase, paying a tiny fraction of what the previous option would be, and just have it there for whenever needed."
Taking on dark fibre is technically not too far removed from adopting lit, noted Cowgill. "Yes, you need to have an understanding of the optical and transmission side and expensive termination and network equipment, but the key point is to have the right network from the outset. We are fortunate to have operated our own network and infrastructure from day one. Those wanting to start from scratch need to allocate time, expertise and money before they can deliver their first circuit. For this reason Exa's partner programme exists to help comms providers more easily deliver dark fibre to their customers.
"The concept of dark fibre is new to many end users and comms providers, but it is taking off rapidly. If you are not in a position to deliver these types of services soon, you are going to be in a bad place competitively speaking. Our reseller and partner programme gives CPs the ability to offer our DarkLight service right away, without needing either the network expertise or expense. The nature of the product means there is little to no competition and it is a unique opportunity for our partners to deliver a future proofed Internet connection to their customers today, and one that will generate recurring revenue for years to come."
For resellers wanting to climb aboard the rolling dark fibre convoy they should consider three important factors, advises Cowgill. Firstly, network availability. "It is no good having a product that only a couple of people can get," he stated. "You need as big a network as is financially and technically possible to reach as many customers as you can."
Secondly, price. To make a step change in Internet connectivity in the UK for business and education organisations there needs to be a competitively priced product. "It's not complicated," explained Cowgill. "If the investment for the CP or end user is too great, nothing will change. Finally, the ability to listen and respond is crucial. As an ISP we need be able to openly talk to our dark fibre suppliers and for them to listen to our requirements and concerns. Anyone who has been in this business for a long time will know this is a big ask, but it is vital."
According to Cowgill, alternative network providers such as CityFibre are best placed to meet all of these essential requirements. "Having a single main provider stifles growth and does not generate competition or technological advancement," he stated. "The country needs alternative network providers who are willing to invest in the UK and help ISPs such as ourselves deliver world leading connectivity and services to organisations throughout the country."
The undeniable benefits of dark fibre to the industry and customers are not the sole rationale behind its widespread appeal. The limitations of the copper-based infrastructure also reaffirms unassailable arguments in favour of a pure fibre future. Enter Copper Road UK, a company that specialises in helping ISPs of all sizes prepare for the journey from copper to fibre by refocusing their sales and commercial approach. Copper Road UK Director Marcus Dacombe commented: "The legacy infrastructure that exists will always have a use but copper is not going to keep up with the exponential increase in demand for data. Fibre is the natural successor.
"As an industry we have never stopped developing more secure, faster and more cost-effective ways of transmitting voice and data, and a pure fibre future is within reach of the mass market. Providers that grab the opportunity to help their customers to develop a connected strategy are going to be in a stronger position than those who just resell comms products."
Access to dark fibre changes the discussion from how to make the most of a scarce bandwidth resource without losing control of costs, to how limitless capacity and flexibility can be leveraged to differentiate, drive efficiencies and prepare a business for the long-term future. "The conversation still starts with what a customer is looking to achieve, but it should then demonstrate how fibre can grow and sustain the business, rather than a series of alternative connection technologies," added Dacombe. "Fibre is an enabler but the return on investment, perceived quality and ease of use are the real decision drivers. The savvy reseller helps customers to understand how fibre can underpin growth and then offers margin rich products based on OTT services. The provider becomes a partner rather than provisioner, pursuing an integrated approach where the connection and services are wrapped together in a value proposition."
Comms providers should sensibly question their current purpose and whether it dovetails with the needs of a fibre-based future, believes Dacombe, who pointed out that sales people will inevitably be required to adapt their approach to generating new business. "There is a great community of sales professionals within the provider community," stated Dacombe. "However, there are also a number of people who are reliant on their previous experience.
"A good sales manager doesn't treat the customer as a quick win sales prospect, but instead relishes the opportunity to build a lasting relationship and become that customer's go-to expert. Recruiting people who can learn and grow with the technology is essential. Fibre sold on its own is just another connection technology, but sold as part of a connected strategy it enables customers to operate in new ways that generate business growth."•