Role of the state in NGN deployment in Europe - Miquel Oliver

• 1.Role of the state in NGN deployment in Europe Review of European Digital Agendas Miquel Oliver , Albert Domingo NeTS Research Group Universitat Pompeu Fabra El papel del Estado en la promocin de la banda ancha(Lima) 18 de Mayo de 2011

2. Agenda

• European context

• Europe 2020 digital agenda

• NGN in Europe

• Some case studies:

• • Portugal, Catalonia, Barcelona and Amsterdam

• Role of the public administration in Europe

• New NGN deployment models?

• Conclusions

3. European framework

• The economic crisis resulted in a large loss in economic activity: millions of lost jobs and GDP reduction

4. Internet Usage in EU

• The share of households with broadband internet access has doubled since 2006

5. Highlights in Internet Usage EU-

• More thanhalf of individualsin the EU27used the internet daily

• Thelowest shareof regular internet users wasin the age group 55-74years

• Aboutfour in ten unemployedinternet users consultedthe internet for learning

• Nearly 60 % of internet users in the EU27 shoppedonline;

6. European markets share Incumbents still dominate around one half of the market 7. Europe 2020

• Approved in May 2010

• Objective:exiting the crisis

• How?

• • Smart-Sustainable-Inclusivegrowth

EU targets for smart growth include: 1.PP investment levels to reach 3% of EU's GDPas well as better conditions for R&D and Innovation2.75% employment rate for women and men aged 20-64by 20203. Better educationalreducing school drop-out rates below 10%and at least40% of 30-34year-olds with third level education 8. Europe 2020

• How will the EU boost smart growth?

• Through 3flagship initiatives :

• 1.Digital agendafor Europe Creating a single digital market based onfast/ultrafast internetandinteroperable applications :

• 2.Innovation Union

• • refocusingR&D and innovation policy onmajor challenges for our society strengthening every link in the innovation chain

• 3.Youth on the move

• • study abroad, equipping young peoplebetter for the job market

• • improving all levels of education and training

9. Digital Agenda for Europe

• Digital Single Market

• EUSingle Marketrules for the digital era

• Single area for online payments , andprotection for EU consumers in cyberspace.

Fig. fromA Digital Agenda for Europe 10. EU as a fragmented market

• Legal downloads are not landing off in Europe

• Different content platforms in each country

• Complex copyright clearance, management and cross-border licensing

x4 11. Trust is important in e-Shopping 12. Fast and ultrafast Internet access

• We need very fast Internet for the economy to grow strongly and to create jobs and prosperity, and to ensure citizens can access the content and services they want.

Still some work ahead to build FTTH infrastructures 13. Action Areas in EU2020

• 2. Theaction areasof the Digital Agenda

• • 2.1. A vibrant digital single market

• • 2.2. Interoperability and standards

• • 2.3. Trust and security

• • 2.4. Fast and ultra fast internet access

• • 2.5. Research and innovation

• • 2.6. Enhancing digital literacy, skills and inclusion

• • 2.7. ICT-enabled benefits for EU society

• • 2.8. International aspects of the Digital Agenda

14. EU2020: Fast & Ultrafast Internet Access

• We need very fast Internet for the economy to grow strongly and to create jobs and prosperity, and to ensure citizens can access the content and services they want.

• (by 2013) (i)all Europeanshave access to much higher internet speeds of above30 Mbpsand,

• (by 2020) (ii)50% or moreof European households subscribe tointernet connections above 100 Mbps

• How? Developing a comprehensive policy focusing on two goals:

• to guarantee universal broadband coverage (fixed & wireless) with internet speeds gradually increasing up to30 Mbpsand above

• to foster the deployment and NGA in a large part of the EU territory, allowing ultra fast internet connections above100 Mbps .

The implication of the different governments is crucial 15. NGN in Europe today 16. NGN in Europe today

• 3.9 M of fiber access subscribers(8.1 M if Russia is included)

• Baltic countries(Lithuania, Sweden, Norway, Slovenia, Slovakia) are leading the fiber deployment

• Portugalis moving fast in fiber roll out leaving the Netherlands, Finland or France behind

• Some countries with long incumbent tradition does not appear or are in the lower part (Germany, France, Spain, Italy, Portugal, UK)

• A relax in the regulatory frameworks incentives the FTTH roll out

() Europe has still a long way to go Chris Holden, President of FTTH Council Europe 17. Bucharest Romania-, relax in telecom regulation 18. NGN Plans for Europe 19. NGN Plans for Europe

• Most European Countries have defined their Digital Agendas according the EU2020 framework

• Ambitious goals in terms of high-speed broadband and coverage are set for 2015-2020 period

• Focus in rural and underserved areas: 100% of population coverage with basic broadband

• A huge amount of resources ( 1.8 Billion ) are allocated to commit the EU2020 agenda.

• Public funding is available in many countries with special focus on rural areas

" Smart investments into high and very high speed broadband infrastructures are crucial to create jobs, increase economic performance and to unlock the competitive potential of the EU in the long term. The Commission is committed to help EU countries to accelerate private and public investments in this sector." Joaqun Almunia , Vice-President in charge of competition policyEuropean Commission 20. Portugal Case 21. Portugal Case

• Under Resolution of the Council of Ministers no.120/2008of 30 July, the Portuguese government has adopted investment in NGA as astrategic priority for the country , establishing as key targets the connection to NGA of:

• • a) One million users by 2010;

• • b) All primary and secondary schools and all public justice services by 2010351;

• • c) All public hospitals, health centres, museums and libraries and all public institutions of higher and polytechnic education by 2009.

• Forced to ensure open access to infrastructure

• Coordinate civil works

These objectives are in line with the approach adopted in the European Union, following the EC Communication" A European Economic Recovery Plan " , Com (2008) 22. Portugal Case

• Under Resolution of the Council of Ministers no.120/2008of 30 July, the Portuguese government has adopted investment in NGA as astrategic priority for the country , establishing as key targets the connection to NGA of:

• • a) One million users by 2010;

• • b) All primary and secondary schools and all public justice services by 2010351;

• • c) All public hospitals, health centers, museums and libraries and all public institutions of higher and polytechnic education by 2009.

23. Portugal Case

• A commitment between operators and government was signed in January 2009. In this protocol, the government committed itself to:

• • a) Promoting the formulation of appropriate legislative measures in order to open ducts, regulate networks inside and outside of buildings and develop a centralized information system, enabling operators to obtain information about the location of ducts;

• • b) Creating a line of credit, available to all investors in NGA, with a minimum value of 800 million euros;

• • c) Generating incentives for investment in NGA.

Operators have committed to invest about1 billion and to bring forward, to 2009, the allocation of resources that make it possible for1.5 million usersto be connected to an optical fiber network. 24. Portugal Case

• Special plans for rural areas:

• • The government launched 5 Public Tenders for the installation and operation of " High-Speed Networks in Rural Areas ", covering 140 municipalities

• Tender specifications:

• • Minimum coverage of 50% of the population of the geographic area within 24 months, and guarantee a minimum speed40 Mbps per end-user.

25. Barcelona Case 26.

• 1999 Barcelona authorities recognized the importance of NGAN and received a well accepted commitment by all operators

• 2003 The incumbentis the only operator that is able to deplo