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Wireless Prague
experience with EC andState Aid rules
http://wifi.praha.eu
Jaroslav Solc, Prague City Hall, IT Dep.
Wireless Prague
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Context
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Why metropolitan wireless infrastructure?
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Broadband = priority (accessibility, affordability ...)
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New challenges: mobility and innovative services
(e-Gov,Tourism, Transportation, Security/CCTV, Healthcare, Environment ...)
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Increasing number of laptops, PDA, smart phones among users
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Effective combination with metro fibre optics
Active role of municipalities
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New services, competitiveness
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Models of public - private cooperation
and combination of resources
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State Aid rules:
European Communities Treaty, Article 87 (1)
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State (public) resources
Economic advantage
Distortion of competition
Affected trade between Member States
If all 4 points fulfilled then can be problem, + exceptions (compatible SA – rural areas)
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Wireless Prague
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Objectives  technology: WiFi Mesh
Pilot: 1/3 of the City area
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Altogether 580 AP,
171 distribution p. fibre backbone (service purchased),
schools and administration buildings + another 409 hotspots
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Financing: City budget
Note: application to SF/SPD2
Jan 2006) rejected (Jan 2007, EC procedure)
CAPEX: 3 mil.EUR, OPEX/5 years 7 mil. EUR (+VAT)
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No free internet access (!)
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Idea end 2005, project preparations 2006,
Public tender – contract (ICZ company, Jan 2007)
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Implementation I/2007 – VI/2008
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Problem: complaint to EC sent by associations of telco operators
(June 2006, Feb. 2007 alt. WiFi operators)
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Commitments
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Phase 1: internal use, public eGov services
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Phase 2: open network, commercial services
(notification to EC)
Wireless Prague
Project scheme
eGovernment services
of city of Prague
Extranet
Prague
schools
hotspots
Fix backbone
Financing :
Wifi-mesh network
Financing :
info: SP - > CAPEX
EU Fund -> CAPEX
Prague -> OPEX
Prague -> OPEX
http://wifi.praha.eu
http://wifi.praha-mesto.cz
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EC / DG Competition
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Complaint / long term procedure
(11 months, 2 meetings, 2 requests for information,
teleconference, official commitments)
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Decision: State Aid No NN 24/2007 (30.05.2007)
Prague Municipal Wireless Network
http://ec.europa.eu/comm/competition/state_aid/register/ii
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Conclusions:
– Project (Phase 1) does not constitute State Aid !
– Plans for Phase 2 will be notified to EC
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General info from the document:
– Municipalities can build infrastructures for their own needs (par. 30)
– No problem with provision of public services (eGovernment) for free (par. 32)
– Model to provide municipal facilities for hotspots deployment recommended
(par. 38)
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Another experience
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EC
– Prague case – first muni wireless project evaluated from State Aid point of view
(until now altogether ca 20 cases, rural areas, neg. Appingedam, Amsterdam in
process)
– No complaints – no case, but notification if uncertainty about State Aid
– No remark on provision of internet (narrow band or other limits)
– No clear remark about open infrastructure model
– Cross communication (DGs)
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National authorities, operators, media
– intensive and positive communication (!!!)
– strong strategic framework (objectives), analyses, political support
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Other cities
– Awareness, sharing ideas and experience, medialisation, lobbying
– Common voice towards EC: gudelines, feasible models? open networks?
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Initiative
• Starting point – why wireless, EKSF – TeleCities statement
– new challenges for cities, mobility, new services, cooperation
• Survey on wireless cities projects to be discussed and launched
• Support:
Elanet (Digital Local Agenda, Hameenlinna EISCO 2007, April),
Erisa, CoR ...
Examples:
Bologna, Stuttgart, San Sebastian,
Oulu, Turin, Brussels, Paris, Lyon,
Tallinn, Amsterdam, Birmingham,
Cardiff, Edingurgh, Leeds, Liverpool,
Westminster
+ USA, Jerusalem, Moscow
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Statement (1) context
• Based on eRights Charter, Broadband Manifesto
Elanet EISCO 2007 Digital Local Agenda
– 16. To leverage the 2008 Green Paper on Universal Service
Obligation, developing a clear statement - agreed with the
Competition authorities and relevant Regulators - about the role of
public sector investment in bridging the Broadband Gap;
– 17. To provide a concise and coherent ”roadmap” for the use of
wireless technologies, including freeing up more spectrum, in
developing Public Sector or PPP initiatives designed to correct
”market failure”.
• Wireless infrastructure and services included also in the FP7,
support by EC
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Statement (2)
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We believe that development of modern wireless
metropolitan broadband networks (complementing metropolitan
optical fibre infrastructure) is an important precondition for the
development of innovative mobile services contributing to
effective city management and competitiveness of cities in the
global scene. These new mobile services accessible anytime and
anywhere can be focused on
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(a) Modernisation of internal city services (transportation,
security, outdoor workers etc.);
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(b)
Provision of city services to citizens, tourists;
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(c)
Provision of mobile availability of the internet.
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Statement (3)
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Cities, associations, national governments, European Commission
are expected
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(a) To support creation of new wireless infrastructures and
innovative mobile services which are more specific for urban areas
in addition to existing support of broadband infrastructure
deployment in rural and underserved areas,
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(b)
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(c) To find feasible models for cooperation of both public and
private sectors.
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Creation of wireless infrastructure and provision of mobile
services is a new challenge for active approach of
local governments and private companies to actively cooperate
and combine ideas and resources.
To support experience sharing between cities,
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Survey (1) questionnaire
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Introductionary information
City, State:
Contact person (name, position, contact):
City profile (population, BB characteristics – providers, access, cost, usage)
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Q1: Is your city interested to create municipal wireless infrastructure? If
YES, in which stage are you – infrastructure partly developed, just
implementing, planning? If NO, please express this fact as well (without
answering other following questions).
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Q2: What are main facts about your project (objectives, technology,
bandwidth/speed, coverage or number of hotspots, backbone network
connection, services for users, timetable, costs and resources etc.)?
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Q3: Who is driving project in your city – city/politics, private companies,
who is responsible person / organization? What is the role of your
municipality in the project (covers costs from the city budget, provides
municipal facility – eg. buildings, lamp-posts/traffic lights, only user etc.)?
Who are other stakeholders of the project?
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Survey (2) questionnaire
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Q4: Who are the users (groups)? What kind of services do you offer? Do
you have some restrictions (content, bandwidth, registration etc.)? Is your
infrastructure opened also to other service providers?
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Q5: Are you planning/implementing some specific services on this wireless
infrastructure besides internet (or restricted internet), e.g. city transport,
tourist info, healthcare, security etc.? Which ones – can you describe
details?
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Q6: What is the current status of your project and what are your plans for
near future?
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Q7: Do you have some interesting experience to be shared with other cities
(lessons learned, recommendation)?
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Q8: Can you recommend us some public source with more information
about your project (project website, press-release, documents)?
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Q9: Any other information - comments, recommendations, interests to
share experience and ideas with other cities?
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Survey (3) organization
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Objectives
– to map the situation in EU cities,
– ideas and experience exchange,
– advertising – conferences
– open discussion on challenges and models
(public-private, open networks)
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Workload: Prague, EKSF, Deloitte CE
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Participants: EKSF members + any other city
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Simple questionnaire, output: brochure
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Schedule
– start: asap
Comment by Maurice Paulissen:
Sensitive issue,
discretion towards EC
Prague:
Let´s work together
Also on political level
Issue should be discussed
(LR govs, national authorities,
EC, telcos)
global competitiveness at stake
– filled questionnaires: mid August?
– brochure: September?
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First draft presentation at Wireles and Digital Cities conference
(Cannes, September 2007)
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Thank you for attention!
Jaroslav Solc
Prague City Hall, IT Department
[email protected]
tel. +420 236002682
www.praha-mesto.cz
Wireless Prague:
http://wifi.praha.eu
http://wifi.praha-mesto.cz
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