Mobile and Fibre Backbone Sharing to Reduce Costs of Network … · 2015-07-13 · May 20, 2008 1 Committed to connecting the world Susan Schorr [email protected] Head, a.i., ITU

1May 20, 2008

Committed to connecting the world

Susan [email protected]

Head, a.i., ITU Regulatory and Market Environment Division

Mobile and Mobile and FibreFibre Backbone Sharing Backbone Sharing to Reduce Costs of Network to Reduce Costs of Network

DeploymentDeployment

WSIS Action Line C6 Facilitation ProcessCreating an Enabling Environment for Growth

Geneva 20 May 2008

2May 20, 2008


Agenda

LevelLevel of ICT of ICT DeploymentDeploymentRoleRole of infrastructure sharing in of infrastructure sharing in extendingextendingnetworksnetworks

Mobile NetworksMobile NetworksFibre Fibre backhaulbackhaul and and backbonebackbone networksnetworks

2008 ITU Global Symposium for 2008 ITU Global Symposium for RegulatorsRegulators (GSR) (GSR) Best Practice GuidelinesBest Practice GuidelinesOtherOther ResourcesResources

3May 20, 2008


Telecom market on the move

Source: ITU World Telecommunication/ICT Indicators Database and ITU World Telecommunication Regulatory Database

Growth in fixed lines, mobile cellular subscribers and estimated Internet users worldwide, 1996-2007

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

billi

ons

0

20

40

60

80

100

120

140

160

nb o

f cou

ntire

s

Fixed lines Mobile subscribers Internet users

Competition in mobile

Competition in fixed-line

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

billi

ons

0

20

40

60

80

100

120

140

160

nb o

f cou

ntire

s

Fixed lines Mobile subscribers Internet users

Competition in mobile

Competition in fixed-line

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Uneven Distribution

ICTs are unevenly distributedDifferences by regionDifferences within regionsDifferences between urban and ruralDifferences by type of ICTDifferences by gender and for the disabled

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Source: ITU World Telecommunication/ICT Indicators Database

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Fixed & mobile in the Black Sea and Caspian regionMobile and fixed penetrations, BSC region,

2007

0%20%40%60%80%

100%120%140%

Bulgari

aRom

ania

Turkey

Armen

iaAze

rbaija

nGeo

rgia

Kazak

hstan

Moldov

a

Russia

n Fed

eratio

nTurk

menist

anUkra

ine

Mobile penetration

Fixed penetration

Source: ITU World Telecommunication Regulatory Database

Note: Data for Armenia, Russian Federation and Turkmenistan are for 2005

9May 20, 2008


The Black Sea and Caspian region: disparities in Internet users

Digital divide within the region: Internet penetration varies between 1.4 and 56 users per 100 inhabitantsCountries having established a separate regulatory authority and a competitive market environment experience stronger growth than monopoly-driven markets

Internet users per 100 capita, BSC region, 2000-2007

0%

10%

20%

30%

40%

50%

60%

2000 2001 2002 2003 2004 2005 2006 2007

BulgariaRomania TurkeyArmeniaAzerbaijanGeorgiaKazakhstanMoldovaRussian FederationTurkmenistanUkraine

Source: ITU World Telecommunication Regulatory Database

InternationalTelecommunicationUnion


11May 20, 2008


Role of Network Sharing to Improve Broadband DiffusionSharing saves costs

For developing countries seeking to leverage mobile infrastructure boom into mobile broadband boomFor developing countries also seeking to build IP-based backbone and backhaul networksFor developed countries seeking to leverage fixed line investments and upgrade to Fibre to home, building or curbBoth share the same goal: to expand network deployment and development by cutting costs

Allowing new players to provide broadbandRelying on time-tested competition principlesAllowing markets to work and close the existing market gapsConsumers getting service

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How to Share

Share some infrastructure but still compete on services

Requires political will and clear regulatory framework

Many of the regulatory tools already exist in

interconnection and competition frameworks

Can apply principles like site sharing, collocation,

connection services to mobile, fibre and international

gateway facilities

Active infrastructure sharing also possible, but

necessary to address competition concerns

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Time is Right

For many developing countries, end of exclusivity periods

A second wave of regulatory reforms could be unleashed

Sharing strategies could be central to the second wave of regulatory reform

Results could be phenomenal

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6 Degrees

What It Is:Using infrastructure sharing together with Universal Access strategies within a competitive frameworkReducing costsAllowing new players to provide broadbandRelying on time-tested competition principlesAbout allowing markets to workConsumers getting service

What It’s Not:An attempt to put infrastructure back in the hands of monopoly providers or to stifle competition (Sharing’s not possible if there’s only one player!)A strategy to lessen competition or to sell less equipment About markets not workingLimiting consumer choicesA limit on facilities-based competition

15May 20, 2008


Mobile Networks: Passive sharing

• Physical space

• Masts and pylons

• Cables

• Battery back-up

• Shelter and support cabinet

Source: Telecom Regulatory Authority of India

16May 20, 2008


Sharing Fibre NetworksMay require close cooperation between the government and local

authorities and can leverage the need for municipalities/local

authorities for building new networks

Important that access to ducts for laying fibre networks to be

available to competitors

Regulators can create “infrastructure sharing desks” to coordinate the

joint laying of fibre

Other mechanisms to promote fibre sharing: building codes,

improving transparency, establishing dispute resolution mechanisms,

and promoting coordination

Promoting PPP between government and incumbents

Regulating access prices for new Broadband Networks and

implementing the LRIC methodology for access pricing

17May 20, 2008


Building Open-Access Telecom Infrastructure: MBC Model

1. Goal to Create a Fiber Optic Mesh Network that Spans the entire region in rural Virginia, U.S.

2. Connect the Region’s Fiber Optic Network to the National and Global Infrastructure

3. Create Multi-Media Service Access Points (MSAP’s) at Strategic Aggregation Points Across the Region

4. Deploy Optical and Wireless Technologies for Community Infrastructure that reflect the best technical and economic choices available

18May 20, 2008


MBC Model: Create FibreOptic Network

Several Issues to overcome:Political Hurdles…20 Counties, 4 Cities, each with own agendas, ideas, and knowledge of telecomBuilding and Funding Patchwork Networks difficult to manage, harder to integrateCapital and Operational Cost Considerations

Solutions:Single entity to manage project, oversee construction, provide same infrastructure, same network connections for each County/CityAccountable for ResultsGrant Dollars offset debt service payments – appropriate investment for the public goodOpen-Access wholesale fiber optic backbone network that all can use, even the incumbent carriersLet Private Sector Serve the End User – not the fibrebackbone provider

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Access to trenches and ducts

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Connect Region to National/Global Telecom

InfrastructureMBC owns fiber and transport network to Tier1 Data Locations200Gbps System 1Gbps of Direct Internet Access from Tier 1 Providers

$16/Mbps versus $266/Mbps

Key to attracting new companies to Rural Virginia

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Create MSAP’s in Region

Access Point for CommunitiesElectronic Equipment Add/DropColocation for other ProvidersOpen-Access ColocationPolicy

22May 20, 2008


GSR 2008 Best Practices GuidelinesA) Promoting an enabling environment

1. Appropriate Regulatory framework2. Competition and investment incentives

B) Innovative regulatory strategies and policies

1. Reasonable terms and conditions2. Pricing3. Efficient use of resources4. Scarce resources5. Licensing6. Conditions for sharing and interconnection7. Establishing an infrastructure sharing one-stop-shop8. Improving transparency and information sharing9. Dispute resolution mechanism10. Universal access11. Sharing with other market players and industries12. Sharing of regulatory practices

23May 20, 2008


Ten GSR 08 Discussion PapersOverview: What do we mean by 6 Degrees of Sharing?Mobile Sharing Extending Open Access to National Fibre Backbones in Developing CountriesBreaking Up is Hard to Do: The Emergence of Functional Separation as a Regulatory RemedyInternational Gateway Liberalization: Singapore experienceSpectrum SharingWRC-07 Results and Impact on Terrestrial Broadband Wireless Access SystemsEnd User Device SharingIPTV and Mobile TV: New Challenges for RegulatorsInternational Mobile Roaming Regulation – An Incentive for Cooperation

www.itu.int/ITU-D/treg/Events/Seminars/GSR/GSR08/papers.html

24May 20, 2008


www.itu.int/ITU-D/treg/bestpractices.html

Resources

25May 20, 2008


ICT Regulation Toolkit

Universal Access: Updated Version to be available in June 2008

26May 20, 2008


More Information

Regulatory informationwww.itu.int/treg/

ICT Regulation Toolkit www.ictregulationtoolkit.org

GSR Best Practice Guidelineswww.itu.int/ITU-D/treg/bestpractices.html

GSR 08 Discussion Paperswww.itu.int/gsr08/papers

ICTdec clearinghouse of regulators’ decisionswww.ictdec.org

27May 20, 2008


ITU BDT Regulatory and Market Environment [email protected]

THANK YOU

Documents

Mobile and Fibre Backbone Sharing to Reduce Costs of Network … · 2015-07-13 · May 20, 2008 1 Committed to connecting the world Susan Schorr [email protected] Head, a.i., ITU