Transcript Capri Between 2010 - Polska Szerokopasmowa

Very High Speed in France &
International BB Plans
Gabrielle Gauthey – Executive Vice-President Global Government & Public Affairs
Broadband Forum Poland, Warsaw
November 24, 2010
Alcatel-Lucent Special Customer Operations
All Rights Reserved © Alcatel-Lucent 2009
Agenda
 Very high speed broadband deployment: the French Case
• The Role of the Law
• The Role Regulation
• The Role of Public Policy
– Local Authorities
– “Caisse des Depots”
– “Grand Emprunt”
 International Examples & Conclusion
•2 | Broadband Forum| November 24, 2010 - rh
All Rights Reserved © Alcatel-Lucent 2010
Very high speed deployment: the French Case
High Speed Deployment in France – International Comparison
OECD Fixed broadband subscribers per 100 inhabitants, by technology,Decem ber 2009
40
DSL
Cable
Fibre/LA N
35
30
OECD
•OECD
average
Average
25
20
15
10
5
N
et
he
rl a
D nds
Sw enm
i tz a r
er k
la
N nd
or
w
ay
Ko
re
Ic a
el
a
Sw nd
Lu e
xe d e
m n
bo
u
Fr r g
a
G nce
er
m
an
U
ni Ca y
te
d nad
Ki
ng a
d
Be om
lg
iu
U Fin m
ni
l
te an
d
d
St
at
e
Ja s
p
A
a
N us n
ew tr
a
Ze li a
al
an
Au d
st
ria
Sp
ai
n
Ita
l
Ire y
la
Po n d
rtu
H ga
un l
ga
C
ze G ry
ch ree
R ce
ep
ub
Sl
ov P li c
a k ol a
R nd
ep
ub
lic
C
hi
M le
ex
ic
Tu o
rk
ey
0
Source: OECD
•3 | Broadband Forum| November 24, 2010 - rh
All Rights Reserved © Alcatel-Lucent 2010
Other
Very High Speed Deployment: The French Case
Regulation: Combination of LLU and Bitstream (1)
Where do we come from in Broadband deployments?
 Competition through active infrastructures has been the main driver behind
the development of broadband:
• Geographic extension of competition has encouraged France Telecom to equip all
of its MDF (Main Distribution Frames) for ADSL
• France has joined European leaders in terms of penetration…
• …and is in good place for "triple play"
 Three major drivers have made this increase in investments possible:
• Dynamic operators, both incumbent and new entrants
• Regulation : LLU first, bitstream as a complement
• Local authorities intervention has been crucial in the expansion of broadband
coverage
•4 | Broadband Forum| November 24, 2010 - rh
All Rights Reserved © Alcatel-Lucent 2010
Very High Speed Deployment: The French Case
Regulation: a Combination of LLU and Bitstream (2)
Growth of the broadband
access base (March 2010)
2002
2003
2004
1st TV/DSL offer
ADSL
24Mb/s
8Mb/s
2006
1st fixed-mobile
Convergent
offer
1st telephony
/DSL offer
1Mb/s
512kb/s
1st broadband/
DSL offer
2005
ADSL2+
2007
2008/2009
1st Very high speed
FTTH offer
100 Mb/s
1999…
DSL coverage as of March 31 2010:
98% of the population
FTTH
Evolution of broadband technologies and services
•5 | Broadband Forum| November 24, 2010 - rh
All Rights Reserved © Alcatel-Lucent 2010
Very High Speed Deployment: The French Case
The new FTTH: Three Public Policy Levers
 Legislative Lever – „Loi de modernisation de l‘economie“ – August 2009
• Sharing of the fibre last drop through mandatory agreements between operators and landlords
• „Right to Fiber“
• Mandatory fiber pre-cabling for new buildings
 Regulatory Lever – Market 4 analysis of July2009
• Asymmetrical regulation (duct access)
• Symmetrical regulation (last drop and in-house wiring)
 Public Policy Lever
• „Caisse des Dépôts“ mandate
• „Grand Emprunt“
• Intervention of local authorites
•6 | Broadband Forum| November 24, 2010 - rh
All Rights Reserved © Alcatel-Lucent 2010
Very High Speed Deployment: The French Case
Legislative Measures Adopted to Facilitate the Roll-Out of FTTH in the buildings
 The LME (Loi de Modernisation de l‘Economie) adopted in August 2009 deals with the
deployment of fiber and sharing of the last part of the local loop among operators:
• A „right to fiber“ has been instituted in order to facilitate the roll-out of fiber networks
inside the building
• In return, any operator that rolls-out fiber within a building has to give access to this fiber
network to other operators: point of sharing is located outside the private property
• A contractual agreement necessary for the relations between property owners and operators
– ARCEP issued a draft agreement
• In new buildings, pre-equipment standards have evolved to include fiber
 The LME sets the rule of symmetrical regulation, in anticipation of article 12
Framework Directive
 The LME grants ARCEP the power to define the technical and tariff related terms of
the shared access and guarantee operators respect them
•7 | Broadband Forum| November 24, 2010 - rh
All Rights Reserved © Alcatel-Lucent 2010
Very High Speed Deployment: The French Case
Regulation FTTH Roll-Out in Very Dense Areas
 ARCEP decision on FTTH deployments in very dense areas ( 5 Millions households)
– After 2 years of consultations and field trials, ARCEP published its final decision on
January 17th 2010;
– Duct Reference Offer available;
– Fiber flexibility point (« point de mutualisation », PM) is located in the public
domain and by exception in the private domain for buildings with more than 12
flats;
– Arcep encourages co-investment in the last drop (i.e. in the building): prior to
installing fibers in a building, every operator must notify its plans to other operators
who are entitled to request a dedicated fiber (and bear associated costs);
– Last drop will be multifibre in case of co-investment and mono-fibre otherwise;
– All operators have published their commercial reference offers.
•8 | Broadband Forum| November 24, 2010 - rh
All Rights Reserved © Alcatel-Lucent 2010
Very High Speed Deployment: The French Case
Regulation: FTTH roll-out in medium/low density areas
 Medium density urban areas represent around 10 Millions households and
low density 10 million households
 Fibre Flexibility Points (FFPs)
 Last drop is shared from the flexibilty point till the end user
 First operator deploying in a given area builds the FFP
 FFPs concentrate a minimum of 300 fibres (average 1 000)
 Mono vs Multifibre
 In very dense areas, multibre is required at operator’s request
 In less dense areas, a single fibre is the general rule for the last drop
 Active equipment installation in the FFP
• Active equipment ( e.g. OLT, Ethernet switch) may be located at the FFP
• In case of technical or economical impossibility, FFP owner is required to provide
dark fiber backhauling
9 | Capri Between’s Conference Oct 2010
© Alcatel-Lucent 2009 All Rights Reserved
Very High Speed Deployment: The French Case
Regulation: NGA - Active Infrastructure Competition Model
Very dense areas :
• Fiber flexibility
point at building
basement by
exception (if MDU
has more than 12
DUs)
• Multi-fibre in the
terminating segment
(in-house wiring) in
case of coinvestment
• Duct access
Less dense areas :
• Fiber flexibility
point at cabinet
level ( min 300
fibers)
• Shared mono-fibre
in terminating
segment and inhouse wiring
• Duct access
•10 | Broadband Forum| November 24, 2010 - rh
All Rights Reserved © Alcatel-Lucent 2010
Very High Speed Deployment: The French Case
Locating the Fibre Flexibility Point (FFP) Accomodates both Technologies
“There are technology-agnostic architectures”
“Positioning of the Fiber Distribution Point”
Optical Network Terminals from operator
Big Buildings
Fiber
Distribution
Point
Suburbs
Optical patch panel
(Passive)
Operator 1
Operator 2
Rural areas
Operator 1 stream
•11 | Broadband Forum| November 24, 2010 - rh
Operator 2 stream
All Rights Reserved © Alcatel-Lucent 2010
Very High Speed Deployment: The French Case
NGA Roll-out in France – FTTH and FTTB deployments
•12 | Broadband Forum| November 24, 2010 - rh
All Rights Reserved © Alcatel-Lucent 2010
Very High Speed Deployment: The French Case
NGA Roll-out in France – ARCEP Figures as of June 31 2010
 ARCEP estimates that, as of June 31, 2010 more than 4.5 million homes were
located in an area where fiber has been rolled out in the access network.
 A total of 40 000 buildings – accounting for 980 000 homes) - are equipped
with optical fibers and connected to the network of at least one operator.
• Of which 83 000 via fiber sharing agreement
•13 | Broadband Forum| November 24, 2010 - rh
All Rights Reserved © Alcatel-Lucent 2010
Very High Speed Deployment: The French Case
Local Authorities Interventions in Telecom Infrastructures in the Past 10 years
 Legal form
•
•
•
•
•
•
Mainly DSP (« concessions »);
Choice by local authorities of one operator/delegator;
Wholesale offers negociated with local authorities;
Coverage imposed by local authorities;
Maximum 70% subsidy (=> operational risk left to the private delegator);
Network remains local authority’s property.
 Operating mode
• Graduation of intervention according to the density and the presence or absence of
operators
• Passive infrastructures in denser areas (mainly open fiber backhauls) with the objective to
connect a maximum of NRF’s and wireless BTS
• Equipement of business parks;
• Activated whosesale offers in the less dense areas;
• In some rural areas : retail operators
•14 | Broadband Forum| November 24, 2010 - rh
All Rights Reserved © Alcatel-Lucent 2010
Other Selected Topics
Open Wireline Backhaul key for both Mobile and Fixed Traffic Growth

Typical telecommunications network architecture
Role of backhaul networks:
Cost effective coverage of
medium and low density areas;
Stimulate competition and
innovation;
Anticipate bandwidth demand
increase for all access
technologies (fibre, LTE,
Wimax,…);
Future proof investment for
public initiatives particularly for
local authorities;
Enhanced connectivity for public
services (schools, hospitals,
universities,…) and business parks
•15 | Broadband Forum| November 24, 2010 - rh
All Rights Reserved © Alcatel-Lucent 2010
Very High Speed Deployment: The French Case
Local Authorities have Played a Crucial Role in Broadband Coverage
•
In recent years, local authorities have
played a key role in the digital development
of their regions in partnership with operators
• Arcep first impact assessment:
– 86 projects – 60 of which are running
– 2.7 billion € invested (approx.50% public funds)
• Major consequences :
– Less expensive coverage of rural areas
– Expansion of LLU, and wireless coverage
– Fostering of local operators development
– Preparation of the future of FTTx
•16 | Broadband Forum| November 24, 2010 - rh
All Rights Reserved © Alcatel-Lucent 2010
Very High Speed Deployment: The French Case
Role of Local Authorities - Private Companies Operating Public Networks
•17 | Broadband Forum| November 24, 2010 - rh
All Rights Reserved © Alcatel-Lucent 2010
NGA roll-out : role of local authorities
Their role could be decisive :
 Encourage the sharing of ducts when granting rights of way
 Lay ducts and rent them to operators
 Avoid inefficient duplication of basic infrastructure (ducts and even dark
fibre) on reduced geographical areas which can be shared among operators
 Have a lever effect on private investments
 Promote the choice of a common optical loop topography by operators
 Ensure a fait opening of the new optical loop
 29 registered local authorities engaged in FTTH roll-out
•18 | Broadband Forum| November 24, 2010 - rh
All Rights Reserved © Alcatel-Lucent 2010
Very High Speed Deployments: French case study
Policy lever : Precautions for local authorities intervention
Precautions taken to avoid concerns and risks mentioned in the recent US
GAO Governmement accountability Office) report
Competition distortion : Maps, agreements with existing networks, …
long term investment sustainability : privately run networks
handle networks interoperability : few wholesale providers, common
standards implemented
•19 | Broadband Forum| November 24, 2010 - rh
All Rights Reserved © Alcatel-Lucent 2010
The Role of „Caisse des Dépôts“
Public broadband infrastructure projects
Typical project structure
Local authority
Subsidies
Other local authorities /
subsidies
Public Contract
Equity
Telco
Client
Special
Purpose
Vehicle
Design &
Build
Sponsor 1
Shareholders
• Caisse des Dépôts
• Project sponsors
Operation &
Maintenance
Sponsor 2
30%
70%
Very high speed deployment: the French Case
Government Role
• Investment mandate to the “Caisse des Dépôts”
• French state loan:
– 2 B€ for very high speed networks
– Long terms loans in medium dense areas
– Subsidies for rural areas
– 2,5 B€ for content, application and services (Web2.0, e-health, e-government,
gaming software, …) applications development
•21 | Broadband Forum| November 24, 2010 - rh
All Rights Reserved © Alcatel-Lucent 2010
Worldwide Trends and Conclusion
EMEA
AMERICAS
APAC
•22 | Broadband Forum| November 24, 2010 - rh
• Active infrastructure based competition prevails, favoring
operator’s vertical integration – passive infrastructure sharing
encouraged - bit stream wholesale being considered as a second
best except in UK (VULA)
• EU Digital Agenda : universal bb coverage, bandwidth increase,
national BB strategies required
• State Aid scope has been broadened for fiber networks in suburban
and remote areas – may accelerate fibre PPPs
• US : Stimulus funds allocated through RUS focus on unserved and
underserved areas – mainly for middle-mile projects ( interstate
backhaul networks)
• CALA : Broadband plans are heating up, focus on mobile open access
and open backbones
• Functional separation (i.e. “shared access”) combined with bitstream
wholesale and heavy regulation are leading network transformation
(Singapore, Australia, NZ) aka NBNs – Open backbones in India.
• Testbed for next generation bitstream wholesale and virtual
unbundling
All Rights Reserved © Alcatel-Lucent 2010
•23 | Broadband Forum| November 24, 2010 - rh
All Rights Reserved © Alcatel-Lucent 2010
Public driven Initiatives
A global trend
Europe’s Digital Agenda
EU countries to adopt national VHS broadband strategies
100% BB coverage in 2013
30 MBs connections for all in 2020 with 50% of EU citizens connected
at 100 MBs
China’s recovery plan
4 Trillion RMB 09-10
ICT included in pillar industries program
Connecting America Broadband Plan
Foster competition, innovation and
investments
French digital plan
Ensure Spectrum availability
2 B € for very high speed BB roll-out in grey and white areas
Universal broadband service
2,5 b € for services/applications
Develop broadbadn based services (ehealth, e-education,...)
FTTH roll-out regulation (geographic segmentation)
Digital dividend release
Digital Britain
Brazilian “Plano Nacional de Banda
Larga”
Connectivity for 50% of urban hh and 15%
of rural hh
60 M mobile access
41 M $ capex (1/3 public, 2/3 private)
•2 Mb/s universal broadband access service in 2012
•200 M£ NGA fund
German Broadband Plan
100% bb coverage by end 2010
75% of hh access at 50 Mb/s by end 2014
Spectrum allocation for LTE
+ Draft bradband plans in Greece, Italy, Poland, Russia,...
•24 | Broadband Forum| November 24, 2010 - rh
All Rights Reserved © Alcatel-Lucent 2010
India National Backbone
4,5 B fiber backbone
90% of population bb coverage by 2013
Australian National Broadband Network
100 MB/s to 90% of subscribers
43 B A$ ( 23 B€)
New Zealand “Broadband Investment Initiative”
1.5 B NZ$ investment plan announced in March
09
Impact on unbundling
40 % of French central offices are unbundled through
Local Communities backhaul networks by end 2009
21,2 M households
CO unbunling : local
community bakchaul
network
988
CO unbundlig : alternative
carriers backhaul networks
+ France Telecom dark
fiber rental
CO unbundling : alternative
carriers backhaul networks
773
913
4,3 M households
2,4 M households
14,4 M households
Number of unbundled CO’s according to backhaul network ownership
•25 | Broadband Forum| November 24, 2010 - rh
All Rights Reserved © Alcatel-Lucent 2010
Broadband Penetration by Technology
•26 | Broadband Forum| November 24, 2010 - rh
All Rights Reserved © Alcatel-Lucent 2010
Very high speed deployment: the French Case
Rural Deployments in France
 Despite the homogeneous need of telecommunication services in rural and dense
areas, there is a mismatch in BB deployment (PC penetration in rural zones is higher
as PC penetration in intermediary zones):
 In rural zones Orange is clearly the dominant operator (market share of Orange
inversly proportional to the size of the agglomeration), namely:
• 64% of the communities with less than 5‘000 inhabitants
• 34% in bigger communities
• 32% in Paris and Paris region
Source: ARCEP 2010
•27 | Broadband Forum| November 24, 2010 - rh
All Rights Reserved © Alcatel-Lucent 2010
Very high speed deployment: the French Case
Broadband Access Market Growth and Competition
 Situation July 2010: 20 M broadband connections (residential and professional
services) of which more than 19 M in ADSL
• 10.3 M access lines commercialized by alternative operators, 7.14 millions total unbundling
• 80% of the competitive offers take advantage of full unbundling
•28 | Broadband Forum| November 24, 2010 - rh
All Rights Reserved © Alcatel-Lucent 2010
Selected Examples of Deployments in France (1)
Fiber Backhauling Availability in Moselle Department
• Public Initiative backhauling
network connect most of
incumbent’s central offices to
enable copper unbundling
• France Telecom’s dark fiber
offer (not regulated) is not
available everywhere ( red : not
available, black : available)
• France Telecom dark fiber offer is commercially driven. It’s tariffs do not reflect a
territorial digital policy. It’s architecture serves FT’s internal needs (central offices
interconnexion)
• Public Initiative backhauling networks may connect business parks, business districts,
company offices, public buildings, poles and masts where base stations require backhaul
facilities ( 3G, LTE,…)
•29 | Broadband Forum| November 24, 2010 - rh
All Rights Reserved © Alcatel-Lucent 2010
Selected Examples of Deployments in France (2)
Manche Numérique
• Backbone network (1200 km) managed as
« affermage »/public concession by LD
Collectivités (private company)
•Total cost: 79 M€, of which:
• 24 M€ public sector (16 M€ from the Department)
• 2008 : FTTh extension to Saint Lô and Cherbourg : 12 M€ 100%
private funding.
• Results :
• 40 business districts connected to fibre backhaul
• Unbundling of all incumbent’s central offices (6 competing
operators cover 35% of the population; 2 competing opérators in all
rural central offices)
•White zones wireless coverage: 4 M€ (210 WiFi spots)
• 26 000 FttH homes passed
• National operators presence : Neuf Cégétel, Colt, Complétel; Free
•Local operators : Nomotech, RMI Adista, Idylle Télécom
•30 | Broadband Forum| November 24, 2010 - rh
All Rights Reserved © Alcatel-Lucent 2010