By Ross A. Haskell and Karsten Scherer
The Distance Race for Today’s Service Providers
Less than one percent of the U.S. population.
That’s how many people across the country completed a 26-mile, 385-yard journey on foot last year. That trek, more commonly known as a marathon, is often hailed as the ultimate endurance accomplishment. Ironically, most first-time marathoners have nightmares about their finish – about tearfully crawling over the line with their hands and knees scarred from a pebble-ridden, unforgiving pavement. The reality, however, is actually quite the opposite. The last mile isn’t the hard part at all. The reason is simple: crowds of encouraging onlookers. In day-to-day life, being screamed at by strangers is far from welcome, but during the last mile of a marathon, it’s the most beautiful sound there is.
Extending the marathon analogy to today’s service provider arena highlights several similarities. In the service provider world, the onlookers are customers, and their enthusiastic encouragement is represented by their demand to sign up for services. A marathon’s last mile doesn’t make the runner depressed at how much further he has to go, but elated at how far he’s come and how comparatively little distance he must still cover – and the same holds true for service providers. It’s getting to the last mile that is a thankless endeavor and also, ultimately, where the real work lies.
Does this mean the last mile isn’t a problem? Of course not. But relative to what it takes to get there, it’s a problem service providers should almost welcome.
The Efficiency Imperative
Regimented training, coupled with a race-day focus on pace, are the keys to completing a marathon. Coaches warn first-timers against the dangers of going too fast early on, stressing that conserving energy by consciously refraining from overextending is critical.
The same advice can be given for service provider build-outs. To establish optimal network performance and to support future growth, a service provider must avoid overextension. The provider needs to start with a firm knowledge of the overall network structure and then focus intently on their operations processes and network management systems. Using such an approach will improve efficiency and enable a tighter control on capital expenditures.
Knowing exactly what’s on your network and having an effective change management system in place is the best way to counteract declining margin per bandwidth unit. However, according to expectations of leading industry analysts, there will be massive increases in spending for fiber to the premises (FTTP) equipment, cable and apparatus. This information hints, rightly, that much needed cost controlling may be considered by many service providers as only part of a larger picture.
So, if service providers face the danger of overexertion like the marathoner struggling to finish, what can they do to counteract this risk?