There are a few different ways that network entities are structured. The term ‘service provider’ is more familiar to most people, as it refers to the institution that sells phone services (or other telecommunications). But there are also operators, which are those who physically build and maintain the infrastructure that service providers use to connect their customers to the wider public network. An independent network operator is a type of company that owns and operates its own networks. This could be a physical telecoms network, such as fibre optic cable or undersea cables, or it may be virtual, such as the internet connection you are using right now.
In the UK, the electricity network is owned and operated by a number of Distribution Network Operators. These companies are regulated by Ofgem and operate the electricity lines that distribute power to homes, businesses and other end users. There are 14 DNOs in Great Britain, each responsible for a specific geographic area. However, since 2000, the energy regulator Ofgem has licensed Independent Distribution Network Operators to compete with DNOs for contestable works. These are called IDNOs and, although regulated in the same way as DNOs, they operate on a nationwide basis.
For new developments such as housing or commercial and industrial buildings, the relevant network operator would traditionally install utility networks. For electricity this would be the local DNO, and for gas it would be the local gas distribution network operator. However, changes to legislation mean that developers can choose who builds their utility networks. This is known as ‘independence of network’ and has a few different models for how the network may be built.
In this model ownership of the network assets is split between the service provider and the independent network operator. This can be useful for sharing costs or risk, but there are some risks associated with this approach and it is important to make sure that a clear and binding agreement is in place before any work begins.
In this method the active or passive network elements are transferred to an independent company, which then leases them back to the service provider. This can help with funding, reduce risks and enable the network operator to remove capital investment from their balance sheet. However, it is vital to ensure that the third-party has sufficient experience and expertise in delivering the necessary services.
Contracts for this type of shared network are usually based on a cost-recovery model, where the independent organisation charges the service provider a fee for the use of the infrastructure. This can be attractive for both parties because it removes the upfront costs of the infrastructure and allows them to focus on developing their own telecommunications services.
Many people are now choosing to take advantage of the freedom of choice offered by MVNOs, which offer cheaper or unlimited mobile phone plans with access to the same networks as the major carriers such as T-Mobile and Verizon. For example, Mint Mobile uses T-Mobile’s network and buys bulk access from the carrier at reduced or wholesale prices to give their customers a better value for money.
TNF Solutions is an independent network operator based in Alkmaar, North-Holland. As a full MVNO, we deliver high-quality mobile communication services worldwide. We have a strong position in the purchase and sales of international mobile data. With our global coverage with more than 750 networks in 200 countries, we have a complete international M2M / IOT portfolio for high, medium, and low volume connectivity. Our fixed connectivity portfolio offers an end-to-end solution that delivers internet connectivity, on all connection types available. DIA, FTTX, VDSL, and Broadband services. We deliver these services in Europe carrier-neutral supporting all operators active at great wholesale level pricing. https://tnfsolutions.com