1. Moving Towards a Very High Speed Europe Eicta Position on Next Generation Access (NGA) I2010 meeting – Brdo – May 13 th & 14 th 2008 Jean Pierre Lartigue - EICTA on

2. 1. Predictions for the Future 2. Importance of NGA 3. Political push for a Very High Speed Europe 4. Removing Obstacles to Investment : Civil works and passive infrastructure sharing 5. Digital divide, Avoiding the gap: Public policy actions

3. 1. Predictions for the Future

4. Consumers Growing Needs Require a Bold Approach to Very High Speed Broadband Access Future broadband - Policy approach to next generation access - OFCOM Sept 2007

5. 2. Importance of NGA

6. Starting point for FTTx: The Bandwidth Equation ADSL - CO ~12 Mbps VDSL – CO ~50 Mbps FTTN - VDSL ~50 Mbps FTTB - VDSL ~100 Mbps FTTH - MDU 100 Mbps+ FTTH - SDU 100 Mbps+ Drivers: upfront CAPEX, competition, time-to-market

7. Two Resulting Paths to Mass Market Fibre Copper-Centric VDSL2: 30 Mlines in 06 120 Mlines in 11 Fibre-centric FTTH: 12 Mlines in 06 50 Mlines in 11 DSLAM (ADSL) FTTH/B >100 Mbps 25 Mbps 3-5 Mbps 100% 85% 200520102015 Reha b Greenfield Coverage VDSL2 50 Mbps ADSL2+ Fixed Wireless DSLAM (ADSL) FTTH/B >100 Mbps 25 Mbps 3-5 Mbps 100% 85% 200520102015 Reha b Greenfield ADSL2+ Fixed Wireless Coverage

8. Various Strategies Observed to Mix VDSL and FTTH FTTH & FTTN FTTH/B FTTH CO VDSL2 & FTTH FTTH FTTN VDSL2 Greenfield VDSL2 FTTH FTTH only FTTB/VDSL2 & FTTH

9. 3. Political Push for a Very High Speed Europe: The Cases of UK and France

10. Example of National Initiative: UK Very High Speed Broadband Projects Case Analysis South Yorkshire Digital Region Four local UK authorities in South Yorkshire region created Digital Region project Create BB infrastructure to spur economic regeneration and bridge Digital Divide The project will sell wholesale access to ISPs using FTTC with speeds up to 50MBit/s Provide NGA to 600 000 homes (i.e 1.3M citizens) and 40 000 businesses across region Case Analysis BT and Ebbsfleet trial BT Openreach: fibre local access at Ebbsfleet Valley in North Kent in a new build zone The trial is intended to gauge what demand exists for very high speed broadband Connect 10 000 homes, 6M feet of commercial space and 3 M ft of retail, leisure and community facilities with speeds of up to 100 Mbit/s This will be offered on a wholesale basis to all UK Communications providers

11. Example of National initiative: French Very High Speed Forum Recommendations Aim: 4M subscribers by 2012 with measures to reduce costs 1. Reduce the cost of wiring buildings Measure 1: Ensure the pre-wiring of new buildings Measure 2: Facilitate operators access to existing buildings Measure 3: Ensure that « in-building » wiring is shared among between operators 2. Reduce civil engineering costs Measure 4: Regulate duct offers Measure 5: Facilitate operator access to existing ducts (electricity, telecoms, sewers…) Measure 6: Promote VHS BB for businesses with the creation of a Very high-speed business area label Measure 7: Allow favorable (public domain) fees for empty or shared ducts Measure 8: Improve knowledge of existing ducts by public domain managers 3 - Ensure access for all Measure 9: Ensure that part of the digital dividend benefits to rural areas 4 - Reinforce R&D and the development of usages Measure 10: Reinforce R&D and development of innovative VHS BB service with competitive clusters Measure 11: Set up one or more large- scale experimental platforms, supporting pilot VHS pilot services

12. 4. Removing Obstacles to Investment : Improving cost of civil works and Passive infrastructure sharing

13. A Mix of Market and Policy approaches will be needed SUBURB-1 Risky business case RURAL-1 No business case CAPITAL Positive business case RURAL-2 RURAL-3 URBA N MARKET DRIVEN Fast service take rate Mass market dense area Natural competition POLICY DRIVEN Underserved BB area High cost/subscriber No private FTTH URBA N Alternative private fibre networks in many European Capitals Open community networks required in underserved areas

14. Public funding is key to achieve 100% coverage Optional: Dark fiber roll-out Private Sector Labeling / Pre- cabling Access to public infrastructure Public Sector Optional: IP Wholesale Dark fiber roll- out and renting Labeling / Pre- cabling Build of Primary infra Market Driven e.g. Tier 1 cities Risk Driven e.g. Tier 2 & suburban Policy Driven e.g. rural Investment (%) Area types Retail, Service applications, Network Retail, service applications Network & IP Wholesale Retail, Service applications, Network, infra resources Access to public infrastructure 100% Total Pay back~4 years~8 years> 20 years Civil work~600 /subs~1200/subs~4000 /subs

15. Several practices of sharing in progress Market DrivenPolicy Driven FFP CO Sharing Dark Fiber in the Building Fiber Flexibility Point Building Private Wholesaler Local community as IP Wholesaler CO SPxSP2SP1 Building owners Public Private Risk Driven Joined re-use of ducts or dark fibre CO Ducts / fiber Private

16. National public coordination must be promoted And already active in several Member States Government Ministries of Industry, Housing, civil Works, Economy,… Telecom Industry Local Communities Municipal network managers Market experts Network operators incumbent and CLECs

17. Need to Reduce Passive Infrastructure Costs 5%20%10% 15% Passives Total 50 % Trench Sharing Ducting Aerial Local Coherence: Investors Coverage Reference Agenda Civil Works Optimised Civil Engineering IMPACT FACTORS

18. 5. Digital Divide – Avoiding the Gap: Public Policy Actions

19. Recommendations on Public Policy Actions European institutions should invite Member States to adopt pro- active policies aimed at spurring NGA investment and preventing the Digital Divide through: 1- Creation of Next Generation Access Forums Must address deployment in suburban and rural areas 2- Establishment of national Very High Speed Broadband Strategies Need broadband coverage to 30% European population by 2010 and 40% European population with Very High Speed by 2012 3- Close involvement of local communities in the definition of Very High Speed broadband strategies Public Funds should be encouraged to support local investment in ICT infrastructure open to all players

20. Recommendations on Public Policy Actions cont 4- Confirmation of technology and architectural neutrality Fibre paradigm is different from copper and need flexible approaches according to investment requirements 5- European institutions need to play an active role by supporting local communities in above mentioned actions EICTA invites them to create public forums addressing best practices for NGA deployment in urban, sub-urban and rural areas