It has been a while since I posted on the blog. I am happy to break the radio silence to let you know about the newest report I wrote for Diffraction Analysis. It is called “The virtues and limitations of FTTP franchise models” and analyzes the fundamentals of contemporary franchising in the telecommunications business. Franchising has been known in the US for decades but the agreement resembled more to a concession where the cable operator and the city agreed the relinquishing of the rights-of-way for a fee and for a redetermined period of time. Today, content providers and access providers join forces and leverage on each other’s competitive advantages to offer an attractive value proposition to local customers.
While evidence shows a strong contribution of the model to the bottom line, in the long-term franchisers and franchisees will face serious strategic and regulatory challenges. If you want to learn more, go to Diffraction Analysis web site. I hear that the boss is selling reports individually now, so if you are interested in this piece in particular don’t hesitate to drop him or me an email.
