PDF of this tutorialThe population shift from city to country has resulted from several factors. One of these factors is a result of the productivity strides made in the manufacturing sector, reducing the percentage of the population working in direct-manufacturing jobs. The resulting growth of the service industry is allowing workers more freedom in where they work and live.
Another reason for the shift from city to country is the growth of second homes for people whose main dwelling is in the city. The lower-cost infrastructure, ranging from real estate to taxes, has given both businesses and individuals another incentive to move to the country. Lastly, the improvements in both telecommunications and computer technology allow these businesses and individuals to reap the benefits of the lower infrastructure costs.
The expectations of people who move to the country have been set by their experience in the city (Figure 3). That is, they expect the same services, such as caller ID, call waiting, ISDN, etc., of the rural telephone companies. Additionally, those people in the country have had their level-of-service expectations raised by the national media, both print and television, as the hype of the World Wide Web is ubiquitous.
Figure 3. The New Whole Product—A Rural Telco Perspective
Customers in rural areas now expect the same level of service as those people in the city. The operator of the local loop has three basic options in terms of providing FSN capability. Simply put, the operator can own, rent, or wholesale part of the entire network.
For instance, the operator can build or own the entire network. This provides the ultimate in control, with regard to pricing, introduction of new services, and leveraging one's brand name. This implies that the operator has or acquires the skills to operate and market the network and its associated services.
The operators need not own the entire network, however, as they can rent facilities from other entities and resell under their brand name. This reduces the investment and spreads the risk associated with the introduction of new services. With this approach, the operators still get the benefit of using their brand name to market and sell network services.
Finally, operators can simply resell transmission or network services to a third party and act as a wholesaler. Operators need not create the infrastructure required for selling, servicing, training, and marketing the new services. By reselling part of the network, the operator effectively shares the risk between wholesaler and retailer. This approach allows the operator to use the marketing resources of the retailer to reach the end customers.
Operators are mixing all of the above approaches to create full-service networks. The particular arrangement chosen by an operator depends on the given circumstances. For instance, to provide Internet access, the operator may partner with a local Internet service provider (ISP) and simply resell the ISP's service. On another level, the operator may provide signal transport or trunking services for a third party, such as a CATV provider, and be completely transparent to the end customer.
