Transcript Broadband Internet development in Lithuania

Broadband Internet development
in Lithuania
Broadband. World opinion
Source: Based on material from Broadband world forum, Seul 2004
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Future: Required Bandwidth per subscriber
Source: Based on material from Broadband world forum, Seul 2004
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Technology development
Source: Based on material from Broadband world forum, Seul 2004
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Lithuania in the context of EU
The eEurope 2005 framework
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Source: eEurope 2005, A study of the degree of alignment of the New Member
States and the Candidate Countries, prepared by INSED, 2004
New member states and Candidate country
Alignment analysis
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Source: eEurope 2005, A study of the degree of alignment of the New Member
States and the Candidate Countries, prepared by INSED, 2004
Lithuania: Alignment with E-15
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Source: eEurope 2005, A study of the degree of alignment of the New Member
States and the Candidate Countries, prepared by INSED, 2004
Structure of BB Internet access market in Lithuania
Fiber optic; 4.38%
Leased line; 1.35%
Other (satelite,
electricity
network); 0.03%
Cable TV; 29.92%
xDSL; 40.79%
Ethernet (LAN);
16.40%
Source: Communication Regulatory Authority, 2004
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Wirelles; 7.12%
Existing situation in Lithuania
Possibility to use Broadband in cities and
rural areas
Possibility to use
Broadband
Category
Population
Number of
areas
Population
%
2,297,635
103
2,292,669
99.8%
Rural areas
1,148,102
21,826
182,061
16%
Cities/Rural areas
>500 of population
371,779
393
166,373
45%
Cities/Rural areas
<500 of population
776,323
21,433
15,688
2%
3,445,737
21,929
2,474,730
72%
Cities
TOTAL
2.5 mln. citizens of Lithuania have possibility to use Broadband Internet today. ~2.3 mln. can
choose attractive proposals from different suppliers.
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Broadband penetration
Source: eEurope 2005, A study of the degree of
alignment of the New Member States and the
Candidate Countries, prepared by INSED, 2004
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Main factors that influence development of
Broadband Internet
• Content
• User’s needs
• User’s literacy and knowledge of how to use
new technologies
• Equipment (PC + Internet access)
• User’s ability to pay/cost of service
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The main factors that stops Broadband
Internet development
• Lack of necessary content;
• There is some restrictions to access Broadband
Internet:
– It’s too expensive for some social groups;
– There is no technological possibility to access
Broadband Internet;
• User’s literacy and knowledge of how to use
new technologies (“fear of technologies”).
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Conclusions and proposals
Definition of Broadband
There is no common definition of Broadband
concept, however the most acceptable and
usable definition means always-on
communication with minimum required
bandwidth*.
Lithuanian Broadband requirements:
• 512 Kbips data transfer rate as minimal bandwidth for
Broadband;
• Permanent connection to the Internet
• Secure delivering of multimedia services
• Real time Quality of Services for each user
*Source: American Federal Communications Commision – FCC
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Requirements for Broadband Internet
development program
• Conformance between needs and abilities
Investments should be proportional for content, for users education and
for technological development.
• Integrity
Program should be coordinated with other Internet development
programs in Lithuania.
• Expedience of investments
One more alternative infrastructure would require scale investments,
complicated control, won’t reach end users and will affect just one aspect
Internet access.
Existing cable and wireless infrastructure should be used – Open
tenders. Administration must warrant that investments will reach end
user (for example subsidies for non-commercial companies, people to
get Internet access/ PC, etc.).
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Broadband Internet development areas
• Finance incentive to increase usage of Broadband
services
• Development of Legal basis
• Public institutions connection to the Broadband network
• Incentive of small and medium business
• To legitimate returns for users of computers and
Internet access procurement costs;
• Investments should be proportional for content, for
users education and for technological development;
• Smart subsidies model must be used in organization of
open tenders, infrastructure development and service
offering
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Typical broadband network architecture
Services
End-user
equipment
Distribution
network
Transmission
network
Private capital
investments
LR and ES fond
sponsorship
Existing network
(operators)
Private capital investments attracted increasing purchasing
power of subscribers and developing network infrastructure in
rural areas.
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Thank you for attention
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