the broadband challenge for all

2015 AND THE NEXT GENERATION TARGET IN PORTUGAL:

THE BROADBAND CHALLENGE FOR ALL

Pedro Ferreira

REGULATEL-BEREC Summit

Punta Canna, 14.12.2010

TABLE OF CONTENTS

1. Why is broadband so important?

2. Europe 2020

3. The EU Digital Agenda

4. The Portuguese Digital Agenda

5. The promotion of NGN investment – Portuguese Government

initiatives

6. The Portuguese e-initiatives

1. Why is broadband so important?

WHY IS BROADBAND SO IMPORTANT?

The wider deployment and more effective use of digital technologies can provide a better quality of life through, for example, better health care, safer transport, and easier access to goods and services, including public services, and cultural content.

From a broad economic perspective, Broadband Internet also fosters innovation and the development of service markets, thus creating new fields of economic activity.

Broadband Internet access


The world demand for bandwidth has been growing at 50%-60% per year. 124 million fixed and 25 million mobile broadband subscriber lines in the EU.

6.3% increase between July 2009 and July 2010.

Fixed broadband penetration rate (UE27): 25,3%.

Fixed broadband lines by technology at EU level, January 2006 - July 2010

0

20

40

60

80

100

120

140

Jan-06 Jul-06 Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10

Mill

ion

s

DSL Cable Other

Fixed broadband penetration, July 2010

13,9

%

13,9

%

14,9

%

15,5

% 18,6

%

19,1

%

19,6

%

19,7

%

20,3

%

20,4

%

21,3

%

22,5

%

22,9

%

23,3

%

23,5

%

23,6

%

25,3

%

26,0

%

28,3

%

28,5

%

29,1

%

30,1

%

31,0

%

31,3

%

31,5

%

33,2

%

38,3

%

36,6

%

0,0%

5,0%

10,0%

15,0%

20,0%

25,0%

30,0%

35,0%

40,0%

45,0%

BG RO PL SK EL PT LT HU LV CZ IT ES IE CY AT SI EU EE UK MT FI BE SE DE FR LU NL DK

Mobile broadband penetration - dedicated data service cards/modems/keys only, July 2010

1,5%

2,0%

2,1%

2,2%

2,3%

2,3%

2,6% 3,1%

3,1% 3,

6%

3,7% 4,2% 4,4% 5,

2%

5,3%

5,4%

5,5% 6,

0% 6,5%

6,6%

8,5%

10,6

% 12,1

% 13,4

%

14,0

%

16,7

%

21,5

%

0,0%

5,0%

10,0%

15,0%

20,0%

25,0%

CY LV EL BE SI BG MT RO EE CZ FR HU DE LT NL SK ES EU PL UK IT IE PT DK SE AT FI


According to the European Commission, speeds on offer are varying widely, but typically download speeds are in excess of 2 Mbps and upload speeds are above 256 Kbps.

Source: European Commission Communication COM(2010)472“European broadband: investing in digitally driven growth”


Broadband penetration Portugal (3Q 2010): 19,1% (fixed) + 12,1% (mobile) = 31,2%

Source: ANACOM

Fixed broadband 3QT10% from

the total

ADSL 1.118.730 54%

Cable Modem 831.855 40%

FWA 23.277 1%

Optical fibre 103.469 5%

Leased circuits 2.070 0,1%Satellite 11 0,0%PLC 0 0%

Other technology 217 0,0%

Total 2.079.629 ADSL

Cable modem

Other (fixed)

Mobile broadband accesses


The annual broadband related growth in the most advanced countries is evaluated as 0.89% of the GDP and will continue to increase. By comparison, countries with less-developed economies take less advantage of broadband: annual broadband-related growth is evaluated as 0.47% of the GDP.

The evidence shows that countries with less-developed economies benefit from focusing on broadband development.

Source: “The Impact of Broadband on Growth and Productivity, MICUS, 2008


Public policies have to be put in place in order to guarantee that no one is left behind, in particular, where commercial conditions are not enough to guarantee a universal access to broadband, like in rural and peripheral areas, at an affordable price.

Public policies have to be put in place in order to guarantee that no one is left behind, in particular, where commercial conditions are not enough to guarantee a universal access to broadband, like in rural and peripheral areas, at an affordable price.

2. Europe 2020

EUROPE 2020 AND THE DIGITAL AGENDA FOR EUROPE

2013: broadband access for all2020: access for all to much higher internet speeds (30 Mbps or above) 2020: 50% or more of European households with internet connections above 100 Mbps

3. The EU Digital Agenda

THE EU DIGITAL AGENDA

'Digital Agenda for Europe' 'Digital Agenda for Europe' (May 2010)

This agenda sets targets for the deployment of fast and very fast broadband, and foresees a number of measures to foster the deployment of NGN based on optical fibre and to support the substantial investments required in the coming years.

The European Commission has proposed a set of legal instruments.

THE EU DIGITAL AGENDA TARGETS AND ITS LEGAL INSTRUMENTS

Guidelines on the application of state aid rules identify the conditions for public financial support on non-market terms for broadband deployment in areas where commercial investments are unlikely to take place in the foreseeable future

Guidelines on the application of state aid rules identify the conditions for public financial support on non-market terms for broadband deployment in areas where commercial investments are unlikely to take place in the foreseeable future

1.

2. Recommendation on NGN aiming at fostering the development of the single market by enhancing legal certainty and promoting investment, competition and innovation in the market for broadband services in particular in the transition to NGN. NRAs need to ensure that access prices reflect the costs effectively borne by the SMP operator, including due consideration of the level of investment risk.

Recommendation on NGN aiming at fostering the development of the single market by enhancing legal certainty and promoting investment, competition and innovation in the market for broadband services in particular in the transition to NGN. NRAs need to ensure that access prices reflect the costs effectively borne by the SMP operator, including due consideration of the level of investment risk.

THE EU DIGITAL AGENDA TARGETS AND ITS LEGAL INSTRUMENTS

3. Radio Spectrum Policy Programme aims at ensuring that part of the digital dividend are earmarked for use by for wireless broadband technologies. Licences for the use of wireless broadband on the 800 MHz band, by 2013.

Radio Spectrum Policy Programme aims at ensuring that part of the digital dividend are earmarked for use by for wireless broadband technologies. Licences for the use of wireless broadband on the 800 MHz band, by 2013.

4. Broadband Commission’s Communication outlines how to best encourage private and public investment in high and ultra-high speed networks.

Broadband Commission’s Communication outlines how to best encourage private and public investment in high and ultra-high speed networks.

4. The Portuguese Digital Agenda

THE PORTUGUESE DIGITAL AGENDA

The Digital Agenda 2015Digital Agenda 2015

The commitment: up to 2012, to invest about 2,5 billion euros in development of value added services and in the roll-out of an infrastructure with national coverage to offer high speed broadband in access to the final user.

THE PORTUGUESE DIGITAL AGENDA

Portugal has assumed the promotion of investment in NGN as a strategic priority for the country, under the terms of the Council of Ministers Resolution No. 120/2008 of 30 July.

Stimulating investment, believing that there is a need for public policies to encourage and promote private enterprises initiative.

THE PROMOTION OF NGN INVESTMENT – PORTUGUESE GOVERNMENT INITIATIVES

In 2009, the Portuguese Government signed a protocol with four players on NGNs.

Operators agreed to bring forward to 2009 the allocation of resources to enable the connection of a fiber optic network to 1.5 million users, collaborating with the Government and with ANACOM in identifying current barriers to investment in NGN. The celebration of this commitment is the recognition that the development and technological innovation is a powerful tool in promoting economic and social development.


The portuguese Government has committed itself to adopt legal measures aiming at removing horizontal and vertical barriers to the investment at NGN, guaranteeing to all operators the access to all ducts, sites, masts and other critical available infrastructures (Decree-Law n. 123/2009, 21st May)

•The obligation to have, in every building, a copper pair, coaxial cable and fibre optic cabling for connection to public electronic communications networks

• Liberalization of underground acess conduits

• Centralized Information Service

• New technical manuals for ITED (infrastructures inside buildings) and ITUR (infrastructures outside buildings)

The new law sets:


ATU – Urbanization Telecommunication Cabinet

• Interconnection to public networks, wherever they are

• Consisting of three main splitters, adapted to three technologies (copper, coaxial, optical fibre)

In building wiring

• Star topology (Copper, CATV , optical fibre )

• MATV mandatory for ≥ 2 building unit. Must include DTT

• Copper in Category 6 • Coaxial prepared to 2,4 GHz• Singlemode optical fibre


The Portuguese Government launched a tender for the selection of entities to perform the installation, management, operation and maintenance of high-speed networks in 140 counties of the following areas:

- the Centre (05.27.2009)- Alentejo and Algarve (06.07.2009) - North (7.10.2009)- the Azores (28.7.2009) - Madeira (28.7.2009)

The areas within each zone were selected based on the lack of investment in infrastructure of cable networks and in the absence of investment by providers of broadband services in their own networks.


These electronic communications networks should, no later than 24 months:

• Ensure coverage of at least 50% of the population living in geographic areas of each municipality;

• Provide download speeds of at least 40 Mbit;• Include a wholesale offer, according to

principles of transparency and non discrimination;

• Be exploited as an open network;• 20 years contract.

Total amount of State aid: up to 115m €. Operators total investment: 182,6m €.


This program is financed by the mobile operators, following the obligations to promote the Society Information set at the public tender for the allocation of the 3G national licenses, held in 2000. It is also financed by public funds.


Accordingly to ANACOM’s report on the impact of e-initiatives (January 2010), there’s a positive impact on subscribers and their families (especially in terms of greater regularity of computer and Internet use). The trend has registered adherence rates of 40%, and in mid-October 2009 the volume of subscribers was about 1.3 million.


Take-up rates, particularly in the e-school programme, have tended to be greater in inland regions than along the coast, suggesting that the e-initiatives have driven take-up in areas where subscription to broadband provided according to normal commercial conditions has been proceeding at a slower pace.


Cost emerges as the key factor motivating take-up of e-initiatives, whereas mobility (e.g. portable computers and mobile internet) is also relevant to a significant number of users. The study also reveals that between 91% and 96% of participants come from families which had computers (mostly desktops) before joining, suggesting that the mobility provided by a portable computer is a valued factor.

Growth intensity of computer use and Internet post accession

Thank you.

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the broadband challenge for all

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