How is DSL be realised by Service Providers? (DSL Resale, DSL Wholesale and
Bitstream)?
Some ADSL
providers simply ‘resell’ DSL services actually provided by other operators
(typically incumbent operators). In this case, the ADSL customer usually
receives two invoices: one from the ADSL provider for the ADSL connection and
the data volume carried (or a data ‘flatrate’) and one invoice from the
incumbent operator for telephone line service. This is sometimes called ‘DSL Resale’ and sometimes ‘DSL Wholesale’.
There
are two main types of DSL Resale/DSL Wholesale: regulated DSL Resale
and voluntary DSL Resale/DSL Wholesale.
In cases
where the incumbent operator offers the regulated form of DSL Resale (e.g. in
Germany), this is usually because the national operator has forced him to do
so. In this case the terms of the technical realisation and the prices
chargeable by the incumbent operator to the DSL reseller are all closely
controlled by the telecommunications regulator.
In
some countries (e.g. UK), the incumbent operator introduced a DSL Wholesale (or
DSL Resale) service on a ‘voluntary’ basis either entirely on its own
commercial initiative or else before the decree of the national regulator. In
these cases, the terms of the resale (technical conditions and prices) are set
directly between the incumbent operator and the reseller (i.e. there is more
flexibility).
The
‘bitstream’ service is a variation on ‘DSL Resale’ or ‘DSL Wholesale’ service.
‘Bitstream’ service is under discussion in European telecommunications
regulatory circles as a means of improving competition in DSL line provision
services. It gives the competitive ADSL service provider the economic benefits
of DSL Resale (economic ADSL service offering without major investment in a
nationwide DSL network infrastructure), but with slightly more technical scope
than DSL Resale offers. In effect, ‘bitstream’ is ‘halfway between line sharing
and unbundling solution for ADSL’.
How does the realisation of my ADSL line (line sharing, unbundling, DSL Resale) affect me?
The basic
technical realisation of an ADSL connection is the same, independent of the
commercial arrangement for provision of
the telephone/ADSL cable and related equipment (provided either by: own-cable
infrastructure, line sharing, unbundling or DSL Resale) on which the service is
based. See figure...
However,
the ownership, control and commercial conditions for the use and service
support of the various equipment components making up the connection may have a
significant impact on the service a customer receives.
The more
equipment components and service personnel are under the direct control of your
ADSL service provider, so the greater degree of control your ADSL service
provider has over the level of service and responsiveness you receive. The more
equipment components are owned by your ADSL provider, so the greater control
your provider has over the technical capabilities of the service and the early
introduction of new features (e.g. ADSL 2+). A long term commitment to DSL
Resale, for example, might prevent an ADSL service provider and all his
customers from using the recently introduced, and higher speed ADSL 2+ service.
Conversely,
by using an ‘unbundled’ line or his own cable infrastructure, a service
provider can gain nearly total control of the ADSL capabilities and service
level of his ADSL offering.
Greatest degree of control: ADSL provider uses own cable infrasructure
ADSL provider uses unbundled lines
ADSL provider uses bitstream service
ADSL provider uses line sharing
ADSL provider uses DSL resale (regulated)
Least degree of control: ADSL provider uses
unregulated DSL wholesale
Which operators use their own cable infrastructure, line sharing, unbundling and/or DSL Resale?
It is not always
easy to determine which cable connection method (own infrastructure,
unbundling, DSL resale etc.) an ADSL service provider is using to provide his
service, although the following generalisations are true in most European
countries:
4 Ex-monopolist incumbent telecom
operators: The ex-monopoly players (incumbents: e.g. British
Telecom in UK, France Télécom in France, Deutsche Telekom in Germany,
Telefónica in Spain etc.) use their own cable infrastructure to provide
DSL/ADSL service under their own Internet brandnames (BT Internet, wanadoo,
T-Online, Telefónica Net)
4 ADSL Resellers / ISPs:
Most of the new players offering ADSL are ISPs (Internet Service Providers:
e.g. AOL, Pipex, Tiscali, United Internet (1&1, GMX) etc.) who are offering
ADSL service based on a DSL Resale arrangement – usually provided by the
incumbent operator. DSL Resale is a relatively easy way for a new market
entrant to offer ADSL service economically, while still being able to offer
nationwide service coverage. When a new service provider appears and is
instantly able to offer nationwide coverage then more than likely: this service
is based on DSL Resale of another operator’s (wholesaler’s) service. In the
longer term, the capabilities and price of the offering will depend upon the
wholesaler as much as upon the ADSL reseller.
4 Network Infrastructure Builders:
A small number of players are concentrating on trying to build their own large
scale network infrastructure – combined with ‘unbundled’ and ‘line sharing’
lines of the incumbent. (e.g. Neufcom/Cegetel in France; Arcor, QSC and
Telefónica in Germany). The investment required for such an undertaking is
enormous – reflecting the financial substance behind these service providers.
But as a means of achieving earliest possible return on their large invesments,
these players also typically offer ‘Wholesale DSL’ services to other ADSL
service providers – as an alternative to the incumbent’s DSL Resale
service. Service providers in this
category can be distinguished by their limited geographical service coverage
(target main cities only, but with an ever expanding list of cities) and by
promotional offers which nearly always combine an ISDN telephone line together
with ADSL service.