jan smits tech univ of eindhoven,ghent 24 oct 2011
TRANSCRIPT
Municipal fiber network in the
Netherlands
Three different legal approaches
Date : October 24, 2011
Location : Gent, Belgium.
: Prof. dr J.M. Smits LL.M.
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The Development of Municipal
Networks in the Netherlands
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The Development of Municipal
Networks in the Netherlands (2)
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Source: OECD
Other Fibre/LAN Cable DSL
OECD Fixed (wired) broadband subscriptions per 100 inhabitants, by technology, December 2010
OECD average
From 0.4% 1,1% The Netherlands
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The Development of Municipal
Networks in the Netherlands (2)
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0% 10% 20% 30% 40% 50% 60% 70%
Belgium
Greece
New Zealand
Canada
Germany
Australia
Austria
Luxembourg
Spain
Ireland
France
Switzerland
Finland
Poland
Italy
Turkey
Netherlands
Portugal
Iceland
Czech Republic
Hungary
Denmark
Norway
Sweden
Slovak Republic
Korea
Japan
Percentage of fibre connections in total broadband subscriptions, Dec. 2010
2.8%
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General legal environment
• Respective regulatory Telecom packages since
1993 allowed for license free market for
establishing electronic communication networks
• Services of General Economic Interest
• State Aid (EU approval, in forms such as recent
French scheme (white areas) or Citynet
Amsterdam (market economy investor principle)
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Region: Four municipalities
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Incumbent approach
SGEI approach
Public party approach
Licensed/incumbent operators
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IBBT Gent
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Nuenen
• FttH Nuenen saved a national subsidised program
called Kenniswijk (2000-2002)
• Very effective community marketing
• Cooporative property by all inhabitants of Nuenen
(OnsNetNuenen)
• Network operator has/had essential control
• FttH networks play important role in perceived feeling
of social well being
• Now well under (indirect) control of Reggefiber/KPN
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Nuenen
• OnsNet Nuenen is a coöperation
• Every one with a subscription on a service of OnsNet
Nuenen is automatically member of the coöperation
• Owner and exploiter of Fiber Optic Network is Netwerk
Exploitatie Maatschappij Nuenen (NEM Nuenen BV), a ltd in
which members of van OnsNet Nuenen hold shares
• NEM concludes contracts with service providers, enabling
the direct delivery of services over the fiber optic network
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Geldrop Mierlo
• Contract signed February 2007 between municipality
and NEM Brabant (subsidiary of Reggefiber)
• Then a period of intensive local marketing is done,
also through opening a special (sign up-) store
• May 2007 18000 homes passed appr. 10.000 homes
connected
• September 2008 ready for operation
• Three service providers: KPN Glasvezel,
OnsBrabantNet, Xs4all
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Public parties: muncipality & social
housing organisations
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IBBT Gent
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Eindhoven
• 22 september 2003 city council approved ‘Glasrijk Eindhoven’ with the
intention in 2010 the whole of Eindhoven (ca. 100.000 woningen)
connected to a fibre optic network
• 1 july 2004 Gemeente Eindhoven & 5 Social housing organisations
signed a declaration of intent to connect within a year 6.000 houses
• These social housing organisations established NEMe (Network
Exploitation Society Eindhoven)
• five housing org established a separate legal entity: Lichtrijk BV to be
able to participate for 20% in an entity that took care of financing NEMe
• March 2007 a new entity was created Lichtrijk Beheer BV, gathering the
20% stakes of each of the social housing org, after a merger 3x30% and
one 10%
• Half 2007 50% of the shares were acquired by Reggefiber.
• Now (2011) the social housing corporations want out October 24, 2011 IBBT Gent
Services of General Economic Interest
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HeezeLeende
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• SGEI are based upon Article 14 and 106(2) TFEU
• As a consequence of standing ECJ jurisprudence it is attributed
legal power to all public regulatory entities
• It can take the form of a contract, Service Level Agreement,
formal local law, etc.
• It allows the formulation of rights and obligations for operators
– Public procurement;
– Technological neutrality;
– Open access (legal, technical and functional);
– Input existing infrastructure;
– Minimal use of public funding;
– Universal service.
HeezeLeende
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• Started end 2008 beginning of 2009
• Ownership of the physical network: Foundation
• Cooperative arrangement for the responsibilities of exploiting the
network
• They worked out a nice scheme for constructing the network,
through a commercial loan guaranteed by the municipality, inputs
from idivduals as well as companies
• Pre selected (after procurement) party for network/services
operation (in the proces bought by Reggefiber)
State Aid & MEIP
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State Aid
• 83 deciscions (july 2011) • http://ec.europa.eu/competition/sectors/telecommunications/broadband_decisions.pdf
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Market Economy Investor Principle
• Citynet Amsterdam
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Decision 23 C 53 / 2006 (ex N 262 / 2005) – Citynet Amsterdam –
NL NL 20/12/2006
Conclusions
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FttH: Local recognition
• Public telecom networks are essential in the general interest
• Necessary: Leagal separation of electronic communication networks -services
• Exploitation of networks has many real estate characteristics
• Innovation means more living comfort & quality of live
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Incumbents
• Take all the advantages the liberalised market has given them • They dictate speed of investment • They deny positive businesscase • Regulators and enforcement agencies limit their control by the sole application of (general) competion law
Questions please
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Contact
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