Doctor

International No-Dig 2012
30th International Conference and Exhibition
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Sao Paulo, Brazil
12-14 November 2012


Paper PAP11479



Innovative Business Model for Simultaneous Sewer Rehabilitation and Fiber Optic installation

Eduardo Barrera1

1 Member of the Board of, Cable Runner Iberica SL & B2B Fiber SA, Madrid, SPAINABSTRACT: Cable Runner Iberica (CRI) is a neutral operator of telecommunication infrastructures using an array of leading-edge trenchless technologies to deploy its fiber optic network namely through the sewage system. Chiefly among these technologies is the relining one developed jointly with BKP that allows for a simultaneous installation of optic fiber while rehabilitating the tube itself.CRI not only offers a unique technology but also an innovative business model based on two concurrent premises: a) network neutrality and b) cost sharing principles. The neutral operator principle is aiming at a common use of the infrastructure layer by all telcos, and in so doing displacing the competence from this layer to the one on services and applications and eventually to the content one,according to the new 3 layers model followed by the telecom industry today. Whereas, the cost sharing principle reduces the operator capex costs. This business model is targeted not only to the telecom clients but also to the local authorities that own and/or operate the sewage network. In effect, CRI business model is presented to Municipalities as a value proposition to allow them to get, withoutmaking any budget effort at all: a) free optic fibers to cover their own needs; b) free partial rehabilitation of its damaged sewage network; c) extra income for their idle empty tubes; and d) new annual revenues in the form of a cannon payable by the telecom operators using the newly built network. The combination of an aging sewage network calling for urgent rehabilitation with an ever growingdemand for new optic fiber networks constitutes a unique business opportunities for those companies like CRI and BKP that can offer to the market the best possible technology combined with the right business model.




1. INTRODUCTION

Cable Runner Iberica SL (CRI) is a neutral operator of telecommunication infrastructures in the Spanish market and now extending into South-America(Brazil, Argentina, Colombia) in association with local companies. CRI was created in 2005 by a group of Spanish entrepreneurs and the Wien Canal (water company of the City Government of Vienna). After a short tour with Telekom Austria (incumbent Austrian Telco) as a major shareholder, the Spanish subsidiary company entered into a Management Buy Out (MBO) process that ended October 2011. Aftersecuring CRI expertise in dark fiber optic deployment through the sewer system using state of the art Austrian robot technologies, the new shareholders also acquired B2B Fiber a recently created company Spanish company highly specialized in fiber optic deployment through the sewer system using state of the art German relining technologies with the idea of not only enlarge its technology options butalso combine different business models in search for positive synergies. CRI is currently 100% Spanish and B2B Fiber is its 100% owned subsidiary.

The figure below summarizes the CRI/B2 business model and actual positioning in the Spanish market.


Figure 1. Schematic view of CRI/B2B Business Model as a neutral operator.

As shown above, CRI/B2B is not just a subcontractor but it buildsits own optic fiber network taken into account the future needs of several telecommunication operators. Subsequently, CRI always installs a large amount of fibers to be sold later to these operators through long term contracts called IRUs (Irrevocable Rights of Use). These type of contracts allow the operators to consider their fiber acquisitions as assets in their own balance sheets.

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