Transcript No Slide Title

Francisco Fuentes
Secretaire General of the FTTH-Council Europe
Cisco Systems
FTTH Council Europe
Mission:
– Accelerate fibre to the home deployment in Europe by
education and promotion, to enhance the quality of life
of EU citizens.
Council:
– Consists of Manufacturers, Construction, Engineering
Companies and Academia.
– It provides an extensive, broad-based range of
experience and knowledge.
– ~50 members
– Non-profit organization
– Founded in 2004
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FTTH Council Europe
• Next Generation Broadband is the foundation (and
driver) of knowledge economy, the next industrial
revolution.
• FTTH infrastructure is critical to the long term
competitiveness of Europe.
• Europe must act now to make it happen!
• FTTH Council Europe Actions
– Provide a knowledge base for information gathering and
analysis for the FTTH market
– Communicate business and technical benefits of FTTH
– Identify and highlight key market drivers and constraints
to FTTH deployment in Europe
– Call on policy makers in Europe to be a catalyst and to
prioritize and facilitate the build out of FTTH deployment
– Participate in providing education
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Agenda
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SETTING THE CONTEXT
IS THIS A PROBLEM FOR EUROPE
POSSIBLE SOLUTIONS
CONCLUDING REMARKS
Japan
Fiber based Infrastructure Competition
TEPCO600,000
(fibre)
ADSL
Cable Internet
FTTH
500,000
TEPCO (CATV)
Cable TV
Usen (music)
400,000
Usen (fibre)
NTT fibre
300,000
NTT Telephones
NTT Group is planning to
invest a¥5 trillion (US$47
Launched Triple Play
billion) in extending its
FTTH (fiber to the home).
The expansion would
involve shifting 30 million
customers to optical fiber
access and nextgeneration network
services by 2010
200,000
Source: Fujikura
Multiple fibres passing the same homes!
100,000
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(Japan)
09/05
05/05
01/05
09/04
05/04
01/04
09/03
05/03
01/03
09/02
05/02
01/02
09/01
05/01
01/01
09/00
05/00
01/00
•Tepco now offering 1Gb/sec to MDUs -100Mb/user will pass 8 million users by end
2004
0 largest CATV provider (J-Comm) entering FTTH to compete with NTT
•Japan’s
•Yahoo BB (Largest DSL competitor) to enter FTTH by leasing NTT lines
•KDDI planning to pass two million users with own fibre (currently lease NTT lines)
Source:
Statistics Bureau,are
Ministry
of Internal
Affairs
and Communication
•USEN 12% of FTTH market, most new
subscribers
former
ADSL
subscribers
US
Operators and Local Communities
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Alabama
*Midway
Sylacauga
Union Springs
Arizona
*La Bernie
*Quantro Ranch
*San Carlos
California
Amerige Heights
Canyon Hills
*Danbury Place
*Elk Grove
*Huntington Beach
Kenwood
*Lincoln
Lincoln Crossing
Mission Bay
*Mission Trails
Palo Alto
Parc Metropolitan
Poppy Meadows
Roseville
Sacramento
Talavera
Colorado
Buckhorn Valley
Chatfield Corner
Colorado City
Eagle Ranch
Source: KMI
Rye
*Two Rivers Village
Deleware
*Cinderberry Estates
Florida
Magnolia Lake
*Palencia
*Reunion
*Tesoro
Tradition
*Tampa
Venetian Bay
Georgia
*Barrington Point
Dalton
Dunwoody
*The Reserve
*Timberland
*Victoria Place
Iowa
Cambridge
Huxley
Guthrie Center
*Oskaloosa
Slater
Idaho
Bear Creek
*Fox Meadows
*Fox Springs
*Rupert
*Teton Springs
*The Settlements
Illinois
Paxton
Salem
Indiana
Bay Creek
*Emerald Springs
*Fox Hollow
Gateway Crossing
*Greensburg
*Reserve-Geist
Rochester
*Woodhaven
Kansas
Almena
*Bogue
*Burlington
*Byron
*Columbus
*Edmond
Hill City
*Holyrood
Iuka
*Kiowa
Norton
Osborne
Quinter
Sharon
Turon
Wakeeney
Wamego
Kentucky
*Johnson County
*McGoffin County
Louisiana
*Grand Lake
Squire Creek Homes
Maine
*Auburn
*Lewiston
Norway
*South Paris
Massachusetts
Pine Hils
Tauton
Maryland
*McHenry
*Shelbysport
Michigan
Cobblestone
*Sunflower Village
Minnesota
Alberta
Chokio
Evermoor
*Holloway
*Lonsdale
Morris
New York Mills
Town Lakes
Victor Garden
*Victoria
*Windom
Missouri
*Bevier
*Bucklin
*Callao
*Macon
*New Cambria
Montana
Baxter Meadows
Ironwood
Nebraska
Greenfield Addition
New Mexico
*Brettana
*San Vincinte
North Carolina
*Columbus
*Tyron
North Dakota
*Jamestown
*Linton
*Lisbon
*Oakes
*Steele
*Wishek
*Zeeland
Ohio
*Ft. Laramie
*Fostoria
*Lima
*St Marys
*Tiffin
Oklahoma
Hinton
Oregon
*Douglas County
*Lexington Estates
*Scio
Woodburn
Pennsylvania
*Farmington
*Friendsville
*Indian Head
*Kecksburg
Kutztown
*Lastrobe
*Mammoth
*Markleysburg
*Stahlstown
South Carolina
*Arborwood
*Bridgemill
Daniel Island
*Edgewater
Hampton Hall
*Millwood
*Palmetto Bluff
*Ridge Point
Sandy Point
Tennessee
*Jackson
Texas
Avery Ranch
*Boerne Heights
*Brookhollow
Canyon Gate Brazos
*Canyon Lake
*Cooperstone
Crystal Falls
*Fountain Hills
Grand Lake Estates
Hometown
*Keller
Lake Ridge South
Lakes on Eldridge
*Lakewood Estates
Laredo
*Lookout Canyon
*Monterey
Mount Valley Heights
*Mountain Valley Lakes
Nothpointe
*Oak Trail
*Preston Manner
Rock Creek
Stone Gate
*Suncrest
*The Falls
*Tivoli Estates
*Trinity Oaks
Victory Lakes
*Willow Creek
*Windmill Farms
*Wolfforth
Utah
*Canyon Meadow
Deer Mountain
*Empire
*Park Crossing
*Pemberly
*Promontory
Provo
Star Mountain
*Travis Mountain
*Tuhaye
Virginia
*Abingdon
Braemar
Brambleton
Bristol
Independence
Lansdowne
*Leisure World
Southern Walk @Broadlands
Washington
Chelan County
Clallam County
Douglas County
Grant County
Issaquah Highlands
Mason County
*Okanaquan
*Pend Oreille
West Virginia
*Hazelton
Wisconsin
Berkseth
*Pabst Farms
Prairie View
Reedsburg
*Woodville
New in 2004
Pre-2004
No deployments
* New to the list
Source: Render, Vanderslice & Associates
Decision to invest for a number of reasons
• Regulatory Environment
– Regulatory Certainty
• Impact of Competitive Access Platforms
– in countries where competitive access platforms exist the
competitive dynamic has been a significant driver in the
deployment of FTTH
• National Policy
– in many countries government has played a key role in
the promotion of FTTH
• Direct subsidy for projects
• Significant Gov. funded projects as a tool of Industrial
policy
• A mix a those catalysers
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European Landscape
Source:
iDate, January 2005
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European Dynamics
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Agenda
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SETTING THE CONTEXT
IS THIS A PROBLEM FOR EUROPE
POSSIBLE SOLUTIONS
CONCLUDING REMARKS
Why Fibre?
• The Service-Arguments
– new services
– multiple services
• The Macroeconomic Arguments
– necessary for developed economies
– increase of GDP, employment,…
• The “Fear”-Arguments
– looking at regions we are in competition with
– mainly Asia and US
• The Infrastructure-Arguments
– Fibre is future-proof
– “Fibre is forever”
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Agenda
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SETTING THE CONTEXT
IS THIS A PROBLEM FOR EUROPE
POSSIBLE SOLUTIONS
CONCLUDING REMARKS
Create a Vision
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Increase Regulatory Certainty
• Distinguishing between new and old (pre-liberalisation)
investments;
– Limit ex-ante regulatory intervention to ‘metallic local
loops’
• Sharing of passive infrastructure;
– Mandate duct sharing
• Co-ordination of civil works;
– Require utilities and construction companies to coordinate the digging and deploy empty ducts whenever
they are digging
• Primary infrastructure utilities
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– Award franchises or subsidies to ‘third parties’ to deploy
and manage open access civil infrastructure to be leased
to operators
Provide Guidance on State Aid
•
Decision such as Atlas:
– Positive: passive infrastructure project with a rate of
return of 6.9% does not distort competition to an extent
contrary to the common interest.
– Negative: decision is very specific. Fails to provide
clear guidance
•
Need Guidance. In particular the FTTH Council Europe
recommends, when is comes to a public funded open
access primary infrastructure, that
– It can be an alternative to attract new investors and
enhance competition
– will benefit all operators
•
does not amount to State Aid
– has a much longer life cycle than the active parts of the
network.
•
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Depreciating the cost over a much longer period than the
depreciation period of the active parts of the network
should NOT be considered a subsidy.
Agenda
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SETTING THE CONTEXT
IS THIS A PROBLEM FOR EUROPE
POSSIBLE SOLUTIONS
CONCLUDING REMARKS
Europe needs to act
• FTTH is now beginning to make a real impact across
the world in terms of :
– # of connections
– the service and application speeds FTTH offers
• There is a real risk that Europe may be left behind if
very high speed broadband makes a significant impact
on productivity/industrial development etc.
• Europe and relevant undertakings should
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– Create a vision for real Broadband
– Take necessary steps to establish clear platform
competition
– Remove regulatory uncertainty
– Clear state-aid rules
Europe may be left Behind
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Source : OECD, 2005
For information and registration :
www.europeftthcouncil.com
Fibre….is not just broadband
It is the utility of the 21st Century ,…
to enhance our quality of life!
Thank You !
www.europeftthcouncil.com