1. JON Exchange

2. Today’s network Openreach KCom VirginMedia

3. Tomorrow’s patchwork – Today! Openreach KCom VirginMedia Alston WWHC Cornwall Bristol Bradnet Corby Quintain 2012 Lace Market Derby Baltic Quarter Fibrecity Dundee Hull Cardenden Angus Glens

6. The Big ISP’s...

7. The impact “Every shop’s a patisserie” –Most ISP’s resell BT Wholesale offerings –Marginal investment –Little scope for technical innovation

8. This works! … for them at least

9. This doesn’t! … for them or anyone

10. This could! … for everyone!

11. This could! … for everyone!

12. JON Exchange Open Marketplace Manchester Oxford Road FibreSpeed BMEXNYnet Digital Region Gateshead Gti DurhamNet Meeting place for –Middle-mile services –Peering & transit –Backbone connectivity –Managed platforms

13. Two key words Fungible LIQUID Liquidadj(finance) fluid: in cash or easily convertible to cash; "liquid (or fluid) assets"

14. Past attempts

15. An Open Market DuctA metre of sub-duct Dark FibreA metre of unlit fibre Passive WavelengthA specific lambda Layer 2An ALA VLAN Active Fungible & Liquid Standards adopted from COTS & NICC Standards adopted from COTS & NICC Maintenance & evolution by market members in line with standards bodies Maintenance & evolution by market members in line with standards bodies

16. Line Access ALA: A break from the past Line Access IP Access Email Web Voice Content Delivery NetworksNew Media ServicesPublic Services

17. TheMarketTheMarket Wholesale Model Network Provider Pro-forma market “contracts” Offer & buy price mechanisms Settlement system leading to a market set “spot price” Standard interface The Market will log transaction information For Ofcom For the Ombudsmen Seeking to create an open & fair telecoms marketplace Service Provider

18. Retail Model Samknows Retail Customer Comparison Site Product Availability Order Management Aggregated Information TheMarketTheMarket Network Provider Service Provider

19. Supply-sideDemand-side Thoughts on a secondary market Forward dated contracts to buy network services NHS tele-care patients, LEA school children, housing associations, communities Network builders could take the contracts as anchor tenants and collateral Capacity Planning Future Option =

20. Summary - Why this can work Fungible assets – Not based on bandwidth – Metre of duct, metre of dark fibre, a wavelength, a VLAN – Each asset is sufficiently homogenous to compare, and different enough to generate market choices Liquidity – European scale – Transition conditions until experience & scale are sufficient – Market operation will lead to a fluid, fair market

21. Trading Platform – Interface system – Trading & settlement Technical/Operational Standards – NICC & BSG/COTS – INCA European Governance structure Summary - Next Steps Aiming for operation in Q4 this year

22. Thank you! Adrian Wooster awooster@jon-exchange.net www.jon-exchange.net