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Passive sharing<br />
While this model can <strong>be</strong> considered a form of infrastructural competition, it<br />
leverages a single passive infrastructure, which is built and maintained by one<br />
owner. The active and services layers are owned by a different organisation. A<br />
second service provider may share the same passive infrastructure with the first<br />
service provider, but will still have to invest in active network equipment and<br />
operations as well as the services and go-to-market activities. Typically, this<br />
model goes hand in hand with regulatory requirements for passive wholesaling.<br />
Active sharing<br />
In the active sharing model a single organisation owns the passive infrastructure<br />
and operates the active network. This vertical infrastructure owner wholesales<br />
broadband access to the various retail service providers who will then compete<br />
against each other for customers. The regulatory framework associated with this<br />
operator model regulates active wholesale specifically, and seeks to encourage<br />
service competition.<br />
Full separation<br />
Full separation, as was already mentioned above, partitions the ownership of the<br />
different layers. Each layer is owned by a different player, with the infrastructure<br />
owner generating income by providing passive infrastructure access to the<br />
network operator, who in turn wholesales broadband access to retail service<br />
providers. This model stimulates competition at the services level and goes hand<br />
in hand with regulatory requirements for passive and active wholesaling.<br />
Figure 4: <strong>FTTH</strong> operator models and regulation<br />
22 www.ftthcouncil.eu