1. MINISTRY OF TRANSPORT AND COMMUNICATIONS OF THE REPUBLIC OF LATVIA Provision of electronic communication infrastructure to implement e-services in Latvia Guntis Mačs Deputy State Secretary

2. MINISTRY OF TRANSPORT AND COMMUNICATIONS OF THE REPUBLIC OF LATVIA Insight to the development of electronic communication networks in Latvia  The strategy adopted by the Latvian government for rapid development of infrastructure for high quality electronic communication networks  The progress made in the implementation of the strategy and  The targets to be set for the future

3. MINISTRY OF TRANSPORT AND COMMUNICATIONS OF THE REPUBLIC OF LATVIA Goals set by the European Union To provide population with the possibility of receiving at least a speed of 2 Mb to connect to the data transmission network at affordable prices by 2010

4. MINISTRY OF TRANSPORT AND COMMUNICATIONS OF THE REPUBLIC OF LATVIA Internet users in Latvia, % of all population Data: Latvian Internet Asssociation

5. MINISTRY OF TRANSPORT AND COMMUNICATIONS OF THE REPUBLIC OF LATVIA Broadband in Latvia  In 2006 - 54% of population use internet  Internet using penetration in rural areas is six times lower than in Riga (capital city)  In 2006 - 6.8% of population use broadband connections (by EUROSTAT)  Broadband services are not available at 83% of the Latvian territory

6. MINISTRY OF TRANSPORT AND COMMUNICATIONS OF THE REPUBLIC OF LATVIA Institutions involved in the development of implementation models :  Ministry of Transport  Institute of Mathematics and Informatics of the University of Latvia  Ministry of Regional Development and Local Governments  Ministry of Finance  Latvian Information and Communications Technology Association  Latvian Internet Association  Telecommunications Association of Latvia

7. MINISTRY OF TRANSPORT AND COMMUNICATIONS OF THE REPUBLIC OF LATVIA Identified problematic issues:  Insufficient financing  Risk of possible incompliance with the EU conditions set to receive state aid Solution:  Co-financing up to 35% to set up a broadband connection points across the country – to develop backhaul (carried out by business entities)

8. MINISTRY OF TRANSPORT AND COMMUNICATIONS OF THE REPUBLIC OF LATVIA Broadband Development Strategy for 2006- 2012  In 2005, the Cabinet of Ministers of Latvia approved the Broadband Development Strategy for 2006-2012 The main objectives :  to ensure all interested parties with access to the broadband network with a speed of 256/128 Kbps throughout the territory of Latvia at affordable prices  special attention should be given to make the broadband available to the population of rural territories

9. MINISTRY OF TRANSPORT AND COMMUNICATIONS OF THE REPUBLIC OF LATVIA Institutions involved in implementation of the strategy:  Ministry of Transport  Institute of Mathematics and Informatics of the University of Latvia  Latvian Information and Communications Technology Association  Latvian Internet Association  Telecommunications Association of Latvia  Secretariat of Special Assignments Minister for Electronic Government Affairs  Ministry of Finance  Ministry of Regional Development and Local Governments  Latvian Association of Local and Regional Governments

10. MINISTRY OF TRANSPORT AND COMMUNICATIONS OF THE REPUBLIC OF LATVIA Implementation: Main selection criteria for the relevant business entity:  Amount of requested public co - financing  Number of regions to be covered by the applicant  Tariffs offered for subscribing to broadband connections and fee for connection set up Available public financing for implementation – 5.6 million euro:  State financing – 1.4 million euro, or 25% of public financing  ERDF financing – 4.2 million euro, or 75% of public financing

11. MINISTRY OF TRANSPORT AND COMMUNICATIONS OF THE REPUBLIC OF LATVIA Requirements to participate in tender:  Application has to cover at least one administrative region of Latvia  State co-financing not exceeding 35% from total project expenses  A connection point has to be set up at any location within the chosen region  Maintenance of the network for at least five years following the implementation of the project  Any other business entity shall have free access to the network at a price not exceeding the fees offered at the tender

12. MINISTRY OF TRANSPORT AND COMMUNICATIONS OF THE REPUBLIC OF LATVIA Implementation:  The open tender - announced on 23 October 2006  The open tender - completed on 5 January 2007  Agreement signed with Telekom Baltija on 9 March 2007

13. MINISTRY OF TRANSPORT AND COMMUNICATIONS OF THE REPUBLIC OF LATVIA Wiew of broadband availability in summer 2008

14. MINISTRY OF TRANSPORT AND COMMUNICATIONS OF THE REPUBLIC OF LATVIA Telekom Baltija project foresees:  To provide connection to broadband (to develop backhaul) throughout all territory of Latvia  Total expenses of the project is 21.5 million Euro  The project shall be finished by July 2008  Zero connection fee  Subscription fees:  28.5 Euro per month for connection with a guaranteed speed of 256/128 Kbps  71 Euro per month for connection with a guaranteed speed of 2 Mbps

15. MINISTRY OF TRANSPORT AND COMMUNICATIONS OF THE REPUBLIC OF LATVIA Next step: To provide all interested parties with access to broadband network with a speed of 2 Mb throughout all territory of Latvia at affordable prices at the “last mile” level

16. MINISTRY OF TRANSPORT AND COMMUNICATIONS OF THE REPUBLIC OF LATVIA Thank you for the attention! www.sam.gov.lv http://www.sam.gov.lv/satmin/content/?cat=265