In the past, there
have been huge investments into public safety networks around the world.
Investments into digital voice solutions with country-wide coverage are still
ongoing in many countries, with Germany and Norway being the latest and widest
implementations. Big infrastructure providers have been earning good revenue with
these national roll-outs. Now, as the old technology cannot provide the data
rates required, many of the traditional players are planning on selling new
broadband networks the same way in the future.
There is however, a
new ‘Blue Ocean’ concept that changes the whole business model for public
safety broadband. This is good news for taxpayers, but poses a significant risk
for the previous rulers of the marketplace. Before I get to that, let’s
summarize what ‘Blue Ocean’ in this case stands for.
INTRODUCTION TO BLUE
OCEAN STRATEGY (BOS)
This term was invented
by W. Chan Kim and RenĂ©e Mauborgne in their book “Blue Ocean Strategy: How to Create
Uncontested Market Space and Make Competition Irrelevant”. The idea is that you
don’t only develop and enhance your offering to win markets, but you can redefine
it by introducing aspects of elimination and reduction. With the new model, we
can reduce or even eliminate investments into new networks and simultaneously
improve data security, reliability, coverage and resilience. And all this at a
fraction of the cost of the old business model.
>>WITH THE NEW MODEL, WE CAN REDUCE OR EVEN ELIMINATE INVESTMENTS INTO NEW NETWORKS AND SIMULTANEOUSLY IMPROVE DATA SECURITY, RELIABILITY, COVERAGE AND RESILIENCE
THE DILEMMA OF
OVERSERVING THE PUBLIC SAFETY COMMUNICATION MARKET
Whenever talking about
public safety, the argumentation for selling solutions has been around the
importance of the service itself. I’ve heard arguments like “TETRA is the only
technology you can trust on your life” or “dedicated and government controlled
networks are the only solutions that fulfill the availability and resilience needs
of public safety”. As we know that Tetra is far better suited for critical communications than a single commercial network, these statements are still not true. The digital PMR, when introduced, was the only suitable solution. It has given over the years us great benefits, is very useful today and will continue to add value in the future. However, we also know of numerous
situations where TETRA, Tetrapol or P25 networks have been down or unusable due
to congestion problems. These, like any single network solutions, are still vulnerable to storms and other
natural catastrophes. The dedicated PMR
networks too often get overcrowded when needed most. Simultaneously, when there’s nothing important going
on, the networks are using even as little as 2-5% of their
capacity. This means that there is a huge investment standing unused most the
time, yet failing unfortunately often when needed the most. If this is what the current
situation is, do we really need dedicated networks business model in the future? Are there
solutions that can outperform the availability and resilience of a single network investment? I think these are questions worth asking.
ALTERNATIVE APPROACHES
TO PUBLIC SAFETY COMMUNICATION
The new strategic
alternative comes from eliminating the need for new networks. We already see
solutions for fixed landline based internet where dedicated secure networks are
built inside a commercially available one. VPN tunneling or MPLS technologies
are commonly used in the PS sector today. The solution is to combine commercial
networks, as many as one wishes, and use secure tunnels inside them. This way,
the existing infrastructure of all mobile operators can be used, taking advantage
of the resilience, availability and operational security they can serve
together. This is very important to understand: the existing, separate networks
can offer these benefits when used in unison. The same reason we have two ears
and eyes. It is possible using these separate networks to have secure tunneling
running simultaneously across them all. This means that the costs of the
solution are magnitudes lower than building an entirely new network anywhere
with any significant coverage.
To read more about the ultimate solutions, check this white paper.
To read more about the ultimate solutions, check this white paper.
By Juhani Lehtonen, VP Sales & Marketing of Goodmill Systems Ltd.
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