JON Exchange

Today’s network

OpenreachOpenreach

KComKCom

VirginVirginMediaMedia

Tomorrow’s patchwork – Today!

OpenreachOpenreach

KComKCom

VirginVirginMediaMedia

Alston WWHC

Cornwall Bristol

Bradnet

Corby

Quintain

2012

Lace Market

Derby

Baltic Quarter

Fibrecity Dundee

Hull

Cardenden

Angus Glens

The Big ISP’s. . .

This works!

… for them at least

This doesn’t!

… for them or anyone

This could!

… for everyone!

This could!

… for everyone!

JON Exchange

Open Open MarketplaceMarketplace

Open Open MarketplaceMarketplace

ManchesterOxford Road

FibreSpeed

BMEX NYnet

DigitalRegion

GatesheadGti

DurhamNet

• Meeting place for – Middle-mile services– Peering & transit– Backbone connectivity– Managed platforms

Two key words

FungibleLIQ

UID

Liquid adj(finance) fluid: in cash or easily convertible to cash; "liquid (or fluid) assets"

Past attempts

An Open Market

Fungible & LiquidFungible & Liquid• Standards adopted from COTS & NICCStandards adopted from COTS & NICC• Maintenance & evolution by market members in Maintenance & evolution by market members in

line with standards bodiesline with standards bodies

Line AccessLine Access

ALA: A break from the past

Line AccessLine Access

IP AccessIP Access

EmailEmail WebWeb VoiceVoice

Content Delivery NetworksNew Media ServicesPublic Services

TheTheMarketMarket

TheTheMarketMarket

Wholesale Model

NetworNetwork k

ProvideProviderr

NetworNetwork k

ProvideProviderr

• 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 Service ProvideProvide

rr

Service Service ProvideProvide

rr

Supply-side Demand-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=

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

• 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

Thank you!

Adrian Woosterawooster@jon-exchange.net

www.jon-exchange.net