Harriet KelverleyChief Strategy Officer

The journal · Connectivity ownership strategy

Choose the service question before making ownership the answer

I examine a corridor pilot whose leased-access choice needed to teach something about the customer proposition, rather than win a misleading comparison with network capital.

Owning a network can be a compelling strategic idea. It gives the institution something tangible to describe and can promise a form of control that reliance on another provider does not offer. But ownership is an answer to a set of questions, not the starting definition of a strategy. I want the company to explain the service it intends to provide and what that service requires before the asset proposal becomes the centre of the argument. Otherwise, the map can settle the direction before the customer proposition has been examined.

In our fictional 2023 Rellaveth Communications case, two industrial corridors prompted a proposed 1800-kilometre owned-fibre network with an A$210 million capital estimate. A leased-access service proposal carried A$36 million over three years. We selected a pilot with A$4.6 million implementation expense for twenty contracted sites. By June 2024, twelve sites were activated and eight remained pending. Those figures describe different parts of the decision and its outcome. None should be used to make the alternatives look more directly comparable than they were.

## Compare commitments on their actual terms

The ownership proposal and the access-service proposal involved different forms and periods of commitment. Subtracting one amount from the other would have created a dramatic number without a sound meaning. It would also have displaced the more useful comparison: what each approach could support, which responsibilities it created and what evidence the institution needed before choosing the next stage. Finance, engineering, operations and commercial colleagues had to explain those matters through their actual assessments. Strategy could not make the comparison valid simply by presenting the figures in the same table.

I wanted the proposed customer promise to organise the discussion. What was the company undertaking to supply at the selected sites? Which requirements were central to that promise? Where did it depend on another party, and what would ownership change? These questions did not imply that leasing was preferable. They made it possible to examine why owning might matter and whether the institution was ready to pursue that form of commitment for the service it had in mind.

Owen Darswell, our invented network-development director, supported the owned-network direction. He believed greater control could give the company a more distinctive position and reduce reliance on another provider. A pilot based on access arrangements might teach something about the offer while leaving those ownership advantages unrealised. I regarded that as the strongest challenge to my recommendation. A staged approach can preserve optionality but also postpone capabilities the institution believes are important. The selected path had to acknowledge that cost rather than present delay as a virtue in itself.

The discussion therefore needed more than a smaller opening expense. A pilot could be a reasonable next step only if the question it answered mattered to the subsequent choice. If the institution already had sufficient evidence about the service and the real issue concerned ownership control, a pilot framed around customer delivery might provide less value. I wanted us to explain why the proposed learning was relevant at that point, and how it would be used, before treating the narrower commitment as the prudent response by default.

## Design the pilot around a question ownership cannot answer alone

The selected pilot focused attention on the service proposition for the contracted sites. Its purpose was not to demonstrate that every future customer should be served through leased access. Nor was it a disguised substitute for the full network proposal. It was a bounded implementation from which the institution could examine the offer in its intended setting. The engineering and service teams owned the work needed to activate the sites; I owned the connection between what that work established and the larger strategic account.

That distinction helped prevent the pilot from becoming a symbolic compromise. It would have been easy to describe it as satisfying both sides: some progress now, with ownership still possible later. But a compromise in the meeting is not necessarily a useful experiment. The institution needed to know what it expected to learn and what results would leave the next question unresolved. Otherwise, any outcome could be called encouraging while the difficult ownership decision simply moved into another planning period.

The A$4.6 million was implementation expense for this scope. It should not be read as the full cost of an equivalent owned network or as an estimate of future access expenditure. I keep that purpose visible because strategic narratives often become less precise when numbers are used to establish a leader's decisiveness. A smaller amount can suggest discipline without showing whether the work was worth doing. The case needs to explain the connection between expense, learning and the subsequent commitment, not rely on the amount's size to make the judgement attractive.

I also wanted the professional boundaries to remain clear. A strategist can ask whether the technical account supports the commercial proposition, but cannot replace the technical account. A public leadership profile should not imply that my recommendation certified performance or established the suitability of every connection. The service and engineering owners' work was essential to the outcome. My contribution was to keep their evidence connected to the question the institution was actually trying to answer.

## Keep the incomplete result in the strategic account

Twelve activations by June 2024 showed that part of the selected work had been delivered. Eight pending sites showed that the proposition was not complete across the contracted scope. I reported both rather than using the completed figure alone as an endorsement of the approach. The pending sites required the responsible teams' explanation; their existence did not by itself prove that leasing was the wrong choice or that ownership would have solved the remaining questions. It made the evidence more specific and less convenient than a single success claim.

That partial outcome was useful precisely because it resisted an easy conclusion. The next strategic discussion could examine what the implementation had established and where further work remained. It could revisit Owen's concern about control with a clearer account of the selected approach. The pilot did not need to settle every future ownership decision to be meaningful. It needed to contribute evidence that the institution could use honestly, including evidence that complicated the proposition I had recommended.

All parties, sites and figures in this example are fictional. An actual account would need authorised customer information and qualified assessment of the technical, contractual and financial alternatives. The broader point is about the order of reasoning. Begin with the service question, assess the commitments on their real terms and describe the pilot's result at the stage reached. Ownership then becomes a considered response to what the company is trying to provide, rather than an impressive asset idea looking for a customer promise to justify it.