GREEK BROADBAND ACCESS DEPLOYMENT STRATEGY

GREEK BROADBAND ACCESS DEPLOYMENT STRATEGY OECD Workshop : Developing broadband access in rural and remote areas

STELIOS SARTZETAKIS Scientific Committee Chairman

Broadband Task Force – Secretary for the Information Society, Ministry of Economy and Finance

competitiveness of a State www.broad-band.gr

™ The competitiveness of a State in the

current, high-tech, digitally converging environments, is strongly related to the existence of state-of-the-art, high capacity, and high performance digital infrastructures, rationally deployed and priced, capable of providing easy, costeffective, secure and uninterrupted access to the international ‘digital web’ of knowledge and commerce, without imposing any artificial barrier. Greek Broadband Task Force – Secretary for the Information Society, Ministry of Economy and Finance

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Definition and Preconditions for Broadband Access www.broad-band.gr

™ capability of transferring large volumes of data between

communicating systems and users ™ emphasis on the ‘always ON’ connectivity ™ seamless transfer of rich multimedia content between providers and users, ™ necessary pre-conditions for the successful deployment of broadband access include availability h of useful multimedia content beyond a critical mass h of ultra-high capacity core infrastructures,

all user-friendly and attractively priced ™ of paramount importance that the overall political and economic conditions (regulatory framework, positive investment climate and socio-economic stability) encourage the extensibility, scalability and sustainability of the access and core infrastructures, as well as the overlaying services. Greek Broadband Task Force – Secretary for the Information Society, Ministry of Economy and Finance

26oct04

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The New Role of the End User www.broad-band.gr

™ In open, networked societies and

economies, where the rapid growth of the number of participants results to a sharp increase of the value of the overall ‘product’ (network externalities), new opportunities emerge for business activity and improvement in the quality of life for citizens. ™ imperative to view all participating users not as passive consumers but as potential providers of services and added value. Greek Broadband Task Force – Secretary for the Information Society, Ministry of Economy and Finance

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The Role of the State www.broad-band.gr

Priority #1: ™ generally accessible and affordable broadband infrastructure ™ development of relevant applications and services ™ development and use of broadband services by the Public Administration, particularly in the sectors of Education and Health a major enabler in raising awareness and ensuring penetration of these services across the State, promoting their use to citizens and businesses. ™ The State, by actively promoting the development of broadband infrastructures and services is a catalyst in Greece towards the targets laid down in the European Initiative eEurope 2005

Greek Broadband Task Force – Secretary for the Information Society, Ministry of Economy and Finance

26oct04

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The situation in Greece www.broad-band.gr

deregulation: Greek regulatory framework to encourage competition in providing broadband infrastructures and services ™ Local Loop Unbundling (LLU) since 2001 + development of new fixed wireless access and satellite technologies provides the legal framework and the technical feasibility for private investments ™ international experience (and more so Greek reality) shows that the above opportunities have not been exploited to a satisfactory degree ™ reasons relate to the ™

h later deregulation (compared to the other EU members) h recession in the sector over the last four years h difficulties faced by telecommunications organisations at a global level

(particularly after the large capital drain of 3rd generation mobile telephony licenses) and technical - financial difficulties in dealing with historical telecommunications monopolies (e.g. determination of interconnection costs and collocation).

Greek Broadband Task Force – Secretary for the Information Society, Ministry of Economy and Finance

26oct04

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Greek Reality www.broad-band.gr

™ combination of the intrinsic characteristics of the local market +

lack of real competition in telecommunications up to recently (with the notable exception of mobile telephony), have only allowed for the slowest development of broadband access in comparison with our partners in the EU and the OECD ™ Broadband task force bold and ambitious goals are set, yet at the same time realistic and feasible to implement within a short time-frame ™ new business models will be pursued in the competitive broadband access market, since the traditional fixed voice telephony provision and tariffing models do not seem to be adequate to handle advanced infrastructures and telematic services for public services as well as profitable business offerings.

Greek Broadband Task Force – Secretary for the Information Society, Ministry of Economy and Finance

26oct04

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Broadband penetration grows slow www.broad-band.gr

70.0% 60.0% France 50.0%

Germany Italy

40.0%

Japan Korea

30.0%

Sweden UK

20.0%

USA Greece 2002 prediction

10.0%

2004 prediction

0.0% current Source: Analysys, 2002

2002

2003

2004

2005

2006

Household penetration projections

Greek Broadband Task Force – Secretary for the Information Society, Ministry of Economy and Finance

26oct04

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Proposed forms of State Intervention www.broad-band.gr

™ Broadband services require the existence of fibre optic

core and MAN networks at national and regional level ™ in order to serve the end user, the development of dense, broadband infrastructures at the local access level (last mile) is required ™ In the short term it is important for solutions such as xDSL, wi-fi and satellite services to be available at affordable prices in remote areas, so as to encourage demand and generate the conditions for a competitive market ™ Greek telecommunications market still continues to depend on the core fibre optics networks of the dominant provider (OTE). New entrants have just begun to install broadband infrastructures, mainly fibre optic, collocated DSL and LMDS access. Greek Broadband Task Force – Secretary for the Information Society, Ministry of Economy and Finance

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Proposed forms of State Intervention (ctd) www.broad-band.gr

™ the State can use the following policy

instruments:

h laying down the statutory and regulatory frameworks and

targets for the implementation of new – by Greek standards – mixed business models in which the private sector participates with the State, following successful international practices, h as a major user of network services, h as enabler and manager of direct and indirect interventions in the sector via programs which lead to forecasting and covering market failures, something which cannot be achieved using other means.

Greek Broadband Task Force – Secretary for the Information Society, Ministry of Economy and Finance

26oct04

10

well balanced and well targeted interventions www.broad-band.gr

regulatory actions

increasing awareness

focus on the public sector as a key user

initiate first wave projects

Accelerating broadband monitoring and benchmarking

supply and demand incentives

enable public-private joint ventures

Greek Broadband Task Force – Secretary for the Information Society, Ministry of Economy and Finance

26oct04

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aggregation, synergies… www.broad-band.gr

™ aggregating demands of Public Services (e.g. Public

Administration, Health, Education etc.), thus creating massive broadband requirements and consequently encouraging the development of the necessary network infrastructures ™ can then be used to provide corresponding services at low prices to the public in a relevant geographical area. ™ development will result from collaborations among Municipalities, Regions, Telecommunications Carriers, Service Providers and Institutions from the Education, Research, Health and Public Administration sectors, resulting directly in the familiarisation of citizens and raising their awareness on what is technically available and how it can improve their quality of life.

Greek Broadband Task Force – Secretary for the Information Society, Ministry of Economy and Finance

26oct04

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…awareness, demand, deployment www.broad-band.gr

™ after extensive deliberations amongst the members

of the Task Force and taking into consideration the international best practices and consultation results, basic recommendations and specific actions, following a well-defined time schedule, are proposed: h the development of Regional Fibre Optic Networks

among others, by 2006 h establishment of a National Public Administration Network superstructure h promotion of certain issues related to the creation of necessary conditions for a healthy and competitive market Greek Broadband Task Force – Secretary for the Information Society, Ministry of Economy and Finance

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Targeted projects can create momentum www.broad-band.gr

W-LAN hotspots

Subsidies to SMEs

™ A low-cost, high impact initiative ™ Matches grass-roots concerns ™ Focussed demand-side intervention ™ Rapid implementation and benefits ™ Tests public-private partnership

Specific fibre networks

models ™ Longer lead-time and higher cost, but an important learning process

Greek Broadband Task Force – Secretary for the Information Society, Ministry of Economy and Finance

26oct04

14

projects (1) www.broad-band.gr

9 project for broadband access pickup in remote areas 9 local access broadband provision (public tender for providers beginning 2005, budget 184 Μ€, 50% funding, Ministry of Transport and Communications)

9 to develop broadband access in rural, remote, and undeserved areas 9 complement, upgrade, accelerate penetration of broadband with the target: broadband service availability to the end user all over the country at affordable prices and a minimum level of quality 9 synergies with the rest of the projects of information society (public administration network syzefxis, IKA, TAXIS).

Greek Broadband Task Force – Secretary for the Information Society, Ministry of Economy and Finance

26oct04

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projects (2) www.broad-band.gr

9

Municipality optical MANs (initial budget 36 Μ€ π.93) 9 public sector sites interconnection MAN in major cities 9 65 municipal proposals in the process of acceptance

by end of October 9 to be accepted in 2004 9 local projects tenders in 2005 9 MANs operational in 2006 9 business model in 2005

9

public sites broadband access

(eEurope2005 targets, syzefxis extension 27 Μ€ π.105 ) 9 global connectivity for remote public sector sites not covered by syzefxis. 9 connection to more than one public site in remote areas. 9 support for education sites access to NREN Greek Broadband Task Force – Secretary for the Information Society, Ministry of Economy and Finance

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projects (3) www.broad-band.gr

9broadband demand promotion awareness increase 9Wireless Hotspots 21,5 Μ€

9 250 businesses, 50% funding 9 creation of in-business or public hotspots

9broadband services demand promotion (broadband culture) 11,5 Μ€ π.84 9 83 projects 9 wired-wireless broadband demos in kiosks around the country 9 public hotspot free access for the project duration (2005-2006) 9 broadband services promotion 9 studies registering local broadband demand

Greek Broadband Task Force – Secretary for the Information Society, Ministry of Economy and Finance

26oct04

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projects (4) www.broad-band.gr

9 satellite broadband access to remote undeserved areas 11 Μ€

(2000 isolated public sites: education, health, local government)

9 BROADBAND SERVICES: business plans co-funding π.95

9 Advanced broadband services for special groups of the population 9 Smart buildings and special infrastructures Greek Broadband Task Force – Secretary for the Information Society, Ministry of Economy and Finance

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GREEK BROADBAND ACCESS DEPLOYMENT STRATEGY

THANK YOU ! [email protected] all material publicly available at: http://www.broad-band.gr Strategy Whitepaper material on specific actions

Broadband Task Force – Secretary for the Information Society, Ministry of Economy and Finance

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