Independent and alternative network operators, often referred to as ‘altnets’, are poised to play an instrumental role in the development of a state-of-the-art digital infrastructure. This involves not just creating fibre networks, but also launching initiatives to acquire subscribers. Altnets understand the immense value a fibre network brings to a community, particularly in areas to date have been overlooked or have lacked adequate service, according to industry expert Dan Bloch.
He views the construction of these networks as a high-return investment when funded publicly, with success gauged by how many homes the service reaches. However, as private investment becomes more central, the focus shifts to profitability, lifelong monetization, and how many homes the service actually connects.
Achieving these objectives requires altnets to adjust their strategies. Bloch advocates for brand-building, suggesting that fostering brand awareness and trust can help attract and retain subscribers once the network is in place. Despite the significance of this aspect, it has often been overshadowed by the urgency to develop the network itself.
Bloch also highlights the importance of maintaining brand consistency across all customer interactions. This leads to a robust, sustainable brand that offers a competitive edge in a market notorious for low customer satisfaction. By Bloch’s reckoning, subscribers’ experiences are shaped by how they use the networks, calling to mind the analogy of a multi-lane highway – the network – and the vehicles driving on it – the subscribers. Yet, those behind the construction of the ‘highway’ garner little appreciation for the user experience it facilitates.
Although altnets may be tempted to differentiate themselves based on speed and pricing, a 2023 Calix survey suggests that these factors alone are unlikely to be the most effective selling points. Rather, successful altnets are reportedly customizing in-home user experiences with additional services tailored to individual user preferences, using a persona mindset. A 2021 Omdia Digital Consumer Insights Survey suggests that UK customers would be prepared to pay more for services including work-from-home plans, advanced Wifi management, and prioritized video streaming, amongst others.
Bloch suggests a unified broadband platform system, such as Calix Cloud, would serve as an ideal partner, enabling the delivery of third-party services to grow the business. He also stresses the importance of providing services for small businesses and maximizing return on investment by connecting all possible endpoints to the infrastructure to enhance network penetration and revenue.
Contrary to what one might think, achieving success doesn’t require lavish advertising budgets. As Bloch points out, platforms like Calix offer a content marketing toolkit complete with award-winning marketing content that can be customized with the service provider’s branding to drive successful campaigns.
Bloch’s vision of the evolving landscape paints a promising picture for altnets’ future, as evidenced by his own company, Calix’s, growth from network-centric to a more holistic approach focused on value-added services. This new direction is geared towards the enhancement of subscriber experiences and fuels growth for both altnets and their customers.
