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Francisco Fuentes Secretaire General of the FTTH-Council Europe Cisco Systems.

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Presentation on theme: "Francisco Fuentes Secretaire General of the FTTH-Council Europe Cisco Systems."— Presentation transcript:

1 Francisco Fuentes Secretaire General of the FTTH-Council Europe Cisco Systems

2 2 FTTH Council Europe Mission: –Accelerate fibre to the home deployment in Europe by education and promotion, to enhance the quality of life of EU citizens. Council: –Consists of Manufacturers, Construction, Engineering Companies and Academia. –It provides an extensive, broad-based range of experience and knowledge. –~50 members –Non-profit organization –Founded in 2004

3 3 FTTH Council Europe Next Generation Broadband is the foundation (and driver) of knowledge economy, the next industrial revolution. FTTH infrastructure is critical to the long term competitiveness of Europe. Europe must act now to make it happen! FTTH Council Europe Actions –Provide a knowledge base for information gathering and analysis for the FTTH market –Communicate business and technical benefits of FTTH –Identify and highlight key market drivers and constraints to FTTH deployment in Europe –Call on policy makers in Europe to be a catalyst and to prioritize and facilitate the build out of FTTH deployment –Participate in providing education

4 4 Agenda SETTING THE CONTEXTSETTING THE CONTEXT IS THIS A PROBLEM FOR EUROPE POSSIBLE SOLUTIONS CONCLUDING REMARKS

5 5 Fiber based Infrastructure Competition Japan Fiber based Infrastructure Competition NTT Telephones NTT fibre Usen (music) Usen (fibre) TEPCO (CATV) TEPCO (fibre) Cable TV Source: Fujikura Multiple fibres passing the same homes! Tepco now offering 1Gb/sec to MDUs -100Mb/user will pass 8 million users by end 2004 Japan’s largest CATV provider (J-Comm) entering FTTH to compete with NTT Yahoo BB (Largest DSL competitor) to enter FTTH by leasing NTT lines KDDI planning to pass two million users with own fibre (currently lease NTT lines) USEN 12% of FTTH market, most new subscribers are former ADSL subscribers NTT Group is planning to invest a¥5 trillion (US$47 billion) in extending its FTTH (fiber to the home). The expansion would involve shifting 30 million customers to optical fiber access and next- generation network services by 2010 Source: Statistics Bureau, Ministry of Internal Affairs and Communication (Japan) Launched Triple Play

6 6 Operators and Local Communities US Operators and Local Communities Alabama *Midway Sylacauga Union Springs Arizona *La Bernie *Quantro Ranch *San Carlos California Amerige Heights Canyon Hills *Danbury Place *Elk Grove *Huntington Beach Kenwood *Lincoln Lincoln Crossing Mission Bay *Mission Trails Palo Alto Parc Metropolitan Poppy Meadows Roseville Sacramento Talavera Colorado Buckhorn Valley Chatfield Corner Colorado City Eagle Ranch * New to the list Rye *Two Rivers Village Deleware *Cinderberry Estates Florida Magnolia Lake *Palencia *Reunion *Tesoro Tradition *Tampa Venetian Bay Georgia *Barrington Point Dalton Dunwoody *The Reserve *Timberland *Victoria Place Iowa Cambridge Huxley Guthrie Center *Oskaloosa Slater Idaho Bear Creek *Holyrood Iuka *Kiowa Norton Osborne Quinter Sharon Turon Wakeeney Wamego Kentucky *Johnson County *McGoffin County Louisiana *Grand Lake Squire Creek Homes Maine *Auburn *Lewiston Norway *South Paris Massachusetts Pine Hils Tauton Maryland *McHenry *Shelbysport Michigan Cobblestone *Sunflower Village Minnesota Alberta Chokio Evermoor *Holloway *Lonsdale Morris New York Mills Town Lakes Victor Garden *Victoria *Windom Missouri *Bevier *Bucklin *Callao *Macon *New Cambria Montana Baxter Meadows Ironwood Nebraska Greenfield Addition New Mexico *Brettana *San Vincinte North Carolina *Columbus *Tyron North Dakota *Jamestown *Linton *Lisbon *Oakes *Steele *Wishek *Zeeland Ohio *Ft. Laramie *Fostoria *Lima *St Marys *Tiffin Oklahoma Hinton Oregon *Douglas County *Lexington Estates *Scio Woodburn Pennsylvania *Farmington *Friendsville *Indian Head *Fox Meadows *Fox Springs *Rupert *Teton Springs *The Settlements Illinois Paxton Salem Indiana Bay Creek *Emerald Springs *Fox Hollow Gateway Crossing *Greensburg *Reserve-Geist Rochester *Woodhaven Kansas Almena *Bogue *Burlington *Byron *Columbus *Edmond Hill City *Kecksburg Kutztown *Lastrobe *Mammoth *Markleysburg *Stahlstown South Carolina *Arborwood *Bridgemill Daniel Island *Edgewater Hampton Hall *Millwood *Palmetto Bluff *Ridge Point Sandy Point Tennessee *Jackson Texas Avery Ranch *Boerne Heights *Brookhollow Canyon Gate Brazos *Canyon Lake *Cooperstone Crystal Falls *Fountain Hills Grand Lake Estates Hometown *Keller Lake Ridge South Lakes on Eldridge *Lakewood Estates Laredo *Lookout Canyon *Monterey Mount Valley Heights *Mountain Valley Lakes Nothpointe *Oak Trail *Preston Manner Rock Creek Stone Gate *Suncrest *The Falls *Tivoli Estates *Trinity Oaks Victory Lakes Source: Render, Vanderslice & Associates New in 2004 Pre-2004 No deployments *Willow Creek *Windmill Farms *Wolfforth Utah *Canyon Meadow Deer Mountain *Empire *Park Crossing *Pemberly *Promontory Provo Star Mountain *Travis Mountain *Tuhaye Virginia *Abingdon Braemar Brambleton Bristol Independence Lansdowne *Leisure World Southern Washington Chelan County Clallam County Douglas County Grant County Issaquah Highlands Mason County *Okanaquan *Pend Oreille West Virginia *Hazelton Wisconsin Berkseth *Pabst Farms Prairie View Reedsburg *Woodville Source: KMI

7 7 Decision to invest for a number of reasons Regulatory Environment –Regulatory Certainty Impact of Competitive Access Platforms –in countries where competitive access platforms exist the competitive dynamic has been a significant driver in the deployment of FTTH National Policy –in many countries government has played a key role in the promotion of FTTH Direct subsidy for projects Significant Gov. funded projects as a tool of Industrial policy A mix a those catalysers

8 8 European Landscape Source: iDate, January 2005

9 9 European Dynamics

10 10 Agenda SETTING THE CONTEXT IS THIS A PROBLEM FOR EUROPEIS THIS A PROBLEM FOR EUROPE POSSIBLE SOLUTIONS CONCLUDING REMARKS

11 11 Why Fibre? The Service-Arguments – new services – multiple services The Macroeconomic Arguments – necessary for developed economies – increase of GDP, employment,… The “Fear”-Arguments – looking at regions we are in competition with – mainly Asia and US The Infrastructure-Arguments – Fibre is future-proof – “Fibre is forever”

12 12 Agenda SETTING THE CONTEXT IS THIS A PROBLEM FOR EUROPE POSSIBLE SOLUTIONSPOSSIBLE SOLUTIONS CONCLUDING REMARKS

13 13 Create a Vision

14 14 Increase Regulatory Certainty Distinguishing between new and old (pre-liberalisation) investments; –Limit ex-ante regulatory intervention to ‘metallic local loops ’ Sharing of passive infrastructure; –Mandate duct sharing Co-ordination of civil works; –Require utilities and construction companies to co- ordinate the digging and deploy empty ducts whenever they are digging Primary infrastructure utilities –Award franchises or subsidies to ‘third parties’ to deploy and manage open access civil infrastructure to be leased to operators

15 15 Provide Guidance on State Aid Decision such as Atlas: –Positive: passive infrastructure project with a rate of return of 6.9% does not distort competition to an extent contrary to the common interest. –Negative: decision is very specific. Fails to provide clear guidance Need Guidance. In particular the FTTH Council Europe recommends, when is comes to a public funded open access primary infrastructure, that –It can be an alternative to attract new investors and enhance competition –will benefit all operators does not amount to State Aid –has a much longer life cycle than the active parts of the network. Depreciating the cost over a much longer period than the depreciation period of the active parts of the network should NOT be considered a subsidy.

16 16 Agenda SETTING THE CONTEXT IS THIS A PROBLEM FOR EUROPE POSSIBLE SOLUTIONS CONCLUDING REMARKSCONCLUDING REMARKS

17 17 Europe needs to act FTTH is now beginning to make a real impact across the world in terms of : –# of connections –the service and application speeds FTTH offers There is a real risk that Europe may be left behind if very high speed broadband makes a significant impact on productivity/industrial development etc. Europe and relevant undertakings should –Create a vision for real Broadband –Take necessary steps to establish clear platform competition –Remove regulatory uncertainty –Clear state-aid rules

18 18 Europe may be left Behind Source : OECD, 2005

19 For information and registration :

20 Thank You ! Fibre….is not just broadband It is the utility of the 21st Century,… to enhance our quality of life!


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