Moving Towards a Very High Speed Europe

Eicta Position on Next Generation Access (NGA)

I2010 meeting – Brdo – May 13th & 14th 2008

Jean Pierre Lartigue - EICTA on

1. Predictions for the Future

2. Importance of NGA

3. Political push for a Very High Speed Europe

4. Removing Obstacles to Investment : Civil works and passive infrastructure sharing

5. Digital divide, Avoiding the gap: Public policy actions

1. Predictions for the Future

Consumers Growing Needs Require a Bold Approach to Very High Speed Broadband Access

Future broadband - Policy approach to next generation access - OFCOM Sept 2007

2. Importance of NGA

Starting point for FTTx: The Bandwidth Equation

ADSL - CO~12 Mbps

VDSL – CO~50 Mbps

FTTN - VDSL~50 Mbps

FTTB - VDSL~100 Mbps

FTTH - MDU100 Mbps+

FTTH - SDU100 Mbps+

Drivers: upfront CAPEX, competition, time-to-market

Two Resulting Paths to Mass Market Fibre

Copper-CentricCopper-Centric

VDSL2: 30 Mlines in ’06 120 Mlines in ’11

Fibre-centricFibre-centric

FTTH: 12 Mlines in ’06 50 Mlines in ’11

DSLAM(ADSL)

FTTH/B

>100 Mbps

25 Mbps3-5

Mbps

100%

85%

2005 2010 2015

Rehab Greenfield

Covera

ge

VDSL250 Mbps

ADSL2+

Fixed Wireless

DSLAM(ADSL)

FTTH/B

>100 Mbps

25 Mbps3-5

Mbps

100%

85%

2005 2010 2015

Rehab Greenfield

ADSL2+

Fixed Wireless

Covera

ge

Various Strategies Observed to Mix VDSL and FTTH

FTTH & FTTNFTTH & FTTN

FTTH/BFTTH

CO VDSL2 & FTTHCO VDSL2 & FTTH

FTTH FTTNVDSL2

Greenfield

VDSL2

FTTH

FTTH onlyFTTH onlyFTTB/VDSL2 & FTTHFTTB/VDSL2 & FTTH

3. Political Push for a Very High Speed Europe:

The Cases of UK and France

Example of National Initiative: UK Very High Speed Broadband Projects

Case Analysis “South Yorkshire Digital Region”Four local UK authorities in South Yorkshire region created “Digital Region” project

Create BB infrastructure to spur economic regeneration and bridge Digital Divide

The project will sell wholesale access to ISPs using FTTC with speeds up to 50MBit/s

Provide NGA to 600 000 homes (i.e 1.3M citizens) and 40 000 businesses across region

Case Analysis “BT and Ebbsfleet trial”BT Openreach: fibre local access at Ebbsfleet Valley in North Kent in a new build zone

The trial is intended to gauge what demand exists for very high speed broadband

Connect 10 000 homes, 6M feet of commercial space and 3 M ft of retail, leisure and community facilities with speeds of up to 100 Mbit/s

This will be offered on a wholesale basis to all UK Communications providers

Example of National initiative: French Very High Speed Forum Recommendations

Aim: 4M subscribers by 2012 with measures to reduce costs

1.  Reduce the cost of wiring buildingsMeasure 1: Ensure the pre-wiring of new buildingsMeasure 2: Facilitate operators’ access to existing buildingsMeasure 3: Ensure that « in-building » wiring is shared among between operators

2.  Reduce civil engineering costsMeasure 4: Regulate duct offersMeasure 5: Facilitate operator access to existing ducts (electricity, telecoms, sewers…)Measure 6: Promote VHS BB for businesses with the creation of a “Very high-speed business area” labelMeasure 7: Allow favorable (public domain) fees for empty or shared ductsMeasure 8: Improve knowledge of existing ducts by public domain managers

3 - Ensure access for allMeasure 9: Ensure that part of the digital dividend benefits to rural areas

4 - Reinforce R&D and the development of usagesMeasure 10: Reinforce R&D and development of innovative VHS BB service with competitive clustersMeasure 11: Set up one or more large- scale experimental platforms, supporting pilot VHS pilot services

4. Removing Obstacles to Investment :

Improving cost of civil

works and Passive infrastructure sharing

A Mix of Market and Policy approaches will be needed

SUBURB-1SUBURB-1

Risky business case

RURAL-1No business

case

CAPITALPositive business case

RURAL-2RURAL-3

URBAN

MARKET DRIVENFast service take rate

Mass market dense areaNatural competition

POLICY DRIVEN

Underserved BB areaHigh

cost/subscriberNo private FTTH

URBAN

Alternative private fibre networks in many European Capitals

Open community networks required in underserved areas

Public funding is key to achieve 100% coverage

Optional: Dark fiber roll-out

Optional: Dark fiber roll-out

PrivateSector

Labeling / Pre-cabling

Access to public

infrastructure

PublicSector

Optional:IP Wholesale

Dark fiber roll-out and renting

Labeling / Pre-cabling

Build of Primary infra

Market Driven

e.g. Tier 1 cities

Risk Driven e.g. Tier 2 & suburban

Policy Drivene.g. rural

Investm

en

t (%

)

Area types

Retail, Service applications,

Network

Retail, service applications

Network & IP Wholesale

Retail,

Service applications,

Network, infra

resources

Access to public

infrastructure

100%

Total Pay back

~4 years ~8 years > 20 years

Civil work

~600 €/subs ~1200€/subs ~4000 €/subs

Several practices of sharing in progress

Market Driven Policy Driven

FFP

CO CO

Sharing Dark Fiber in the

Building

Fiber Flexibility Point Building

Private

WholesalerWholesaler

Local community as IP Wholesaler

CO

SPxSP2SP1

Building

owners

PublicPrivate

Risk Driven

Joined re-use of ducts or dark

fibre

CO CO

Ducts / fiber

Private

National public coordination must be promotedAnd already active in several Member States

Government Ministries of

Industry, Housing, civil Works, Economy,…

Telecom Industry

Local Communities Municipal network

managers

Market experts

Network operators

incumbent and CLECs

Need to Reduce Passive Infrastructure Costs

5%20% 10%15%Passives Total

50 %TrenchSharingDuctingAerial

LocalCoherence:InvestorsCoverage

ReferenceAgendaCivil Works

OptimisedCivilEngineering

IMPACT FACTORS

5. Digital Divide – Avoiding the Gap:

Public Policy Actions

Recommendations on Public Policy Actions

European institutions should invite Member States to adopt pro-active policies aimed at spurring NGA investment and preventing the Digital Divide through:

1- Creation of Next Generation Access ForumsMust address deployment in suburban and rural areas

2- Establishment of national Very High Speed Broadband Strategies

Need broadband coverage to 30% European population by 2010 and 40% European population with Very High Speed by 2012

3- Close involvement of local communities in the definition of Very High Speed broadband strategies

Public Funds should be encouraged to support local investment in ICT infrastructure open to all players

Recommendations on Public Policy Actions con’t

4- Confirmation of technology and architectural neutrality

Fibre paradigm is different from copper and need flexible approaches according to investment requirements

5- European institutions need to play an active role by supporting local communities in above mentioned actions

EICTA invites them to create public forums addressing best practices for NGA deployment in urban, sub-urban and rural areas