An article by McKinsey & Company “The Keys to Deploying Fiber Networks Faster and Cheaper”, dives deep into the strategies fiber operators can use to expand their fiber network. Below is a summary of this article.
The Challenge: Expanding Fiber Optic Networks Efficiently
Telecom companies are racing to connect more people to high-speed fiber optic networks. While significant progress has been made, a large portion of the global population still lacks this critical infrastructure. The key to further expansion lies in reducing deployment costs and accelerating the rollout process. This article explores four key tactics that can help achieve this goal.
1. Targeting the Right Markets with AI
Traditionally, companies have focused on high-revenue areas like densely populated urban centers. However, as these areas become saturated with fiber, targeting them becomes less cost-effective. AI-powered planning models can identify the sweet spot – areas with a good balance between low deployment costs and high potential customer penetration. These models consider a variety of factors beyond demographics, such as network route lengths, deployment methods (aerial, underground ducts, or new trenching), existing infrastructure availability, and competitor plans. By pinpointing these optimal markets, companies can maximize their return on investment while reaching new customer segments.
2. Building an Efficient Operating Model
The speed and efficiency of fiber rollout hinge on a company’s operating model. Here’s how improvements can be made:
Standardization: Standardizing processes, procedures, and network design across different regions and projects eliminates inefficiencies and ensures best practices are followed. This reduces errors, speeds up deployment, and lowers costs.
Unified IT Stack: Replacing a jumble of legacy tools with a unified IT system streamlines data management, project tracking, and resource allocation. This not only improves deployment speed but also reduces costs associated with maintaining multiple systems.
Centralized Coordination Center (Nerve Center): Deploying fiber across numerous locations with various vendors and suppliers can lead to unforeseen issues. A central nerve center provides a bird’s-eye view of the entire deployment process. It collects and analyzes data on permitting progress, inventory levels, and construction timelines. This real-time visibility allows the center’s cross-functional team to proactively address problems, optimize resource allocation, and prevent delays.
3. Automating Repetitive Tasks
Fiber deployment involves a multitude of repetitive tasks that are ripe for automation. Here are some key areas:
Network Design: Automating network design reduces the time and expertise needed to plan optimal routes, node placement, and network capacity. This frees human resources to focus on complex design challenges or validating automated solutions.
Site Surveys: Data collection, terrain analysis, and obstacle detection for new fiber routes can be automated using digital twin models. These combine satellite imagery, geospatial data, and elevation models, reducing the need for time-consuming physical site visits.
Permit Applications: Obtaining permits is often a significant bottleneck in deployment. Standardized, automated permit centers can streamline the process by collecting and validating data, submitting applications, and tracking their progress. This can significantly reduce application processing times and free up employees to address complex permit requirements.
Construction Management: Real-time automated construction management systems monitor the progress of tasks and activities, ensuring projects stay on schedule. This allows project managers to identify and address potential delays proactively and dedicate more time to complex challenges or unexpected field issues.
4. Building Long-Term Partnerships with Suppliers
Instead of short-term, transactional relationships with suppliers, building long-term partnerships offers significant benefits. These partnerships:
Improve Supply Chain Stability: Suppliers can plan production schedules and resource allocation based on operators’ long-term needs, leading to a more stable and predictable supply chain. This reduces the risk of delays and disruptions in deployment.
Negotiate Favorable Terms: Through close collaboration, operators can secure better pricing, bulk discounts, and customized solutions beyond what’s available through one-off competitive bidding. This can lead to significant cost savings.
Enhanced Demand Forecasting: Accurate demand forecasting is crucial for maintaining a reliable supply chain. Operators can achieve this by implementing robust demand planning systems with machine learning tools and integrating them with deployment and financial planning.
Efficient Inventory Management: Efficient inventory management systems provide real-time visibility into stock levels across the entire supply chain. This ensures the right materials are available at the right locations and times, further improving demand forecasting accuracy.
By implementing these four key tactics, telecom companies can significantly improve the efficiency and cost-effectiveness of fiber optic network deployment. This will not only accelerate network expansion but also bring high-speed internet access to a wider population, bridging the digital divide.
About VETRO
At VETRO, we believe visualizing data unlocks hidden potential, radically simplifying the way businesses operate and digitizing the future of connectivity. We focus on empowering network operators with unparalleled clarity and control over their fiber networks, enabling them to move faster, better, and more efficiently than ever before. Our revolutionary platform isn’t just software – it’s the physical network asset system of record, offering unprecedented visibility and control from strategic planning to daily operations. We empower our customers to bridge the digital divide at a rapid pace, unlock unforeseen opportunities, and squeeze the maximum value from their networks. Let’s illuminate the unseen, digitize the way we connect, and shape the future of connectivity, together.