Real story, real numbers – A case study
EETT’s 6th International Conference Advanced Communication Infrastructures as a Cornerstone for Europe’s Digi...
EETT’s 6th International Conference Advanced Communication Infrastructures as a Cornerstone for Europe’s Digital Agenda Athens, June 2nd 2011 Birgir Rafn Thrainsson, CEO Reykjavik Fiber Network
Objective
Tell you about the Reykjavik FTTH project, the Business model, the Deployment and the Active Network
Share information, progress numbers, financial figures and technical metrics
For comparison to your own project and your own numbers or estimates
Agenda Background
Business model
Cost figures
Lessons learned
FTTH network
BACKGROUND
About Reykjavík Fiber Network Builds and operates an Optical Fiber Network Founded 2007
A subsidiary of Reykjavik Energy, an energy and utility company owned by the City of Reykjavik
Fiber backbone network in the Reykjavik area since 1999
Power line services 2002 to 2005
FTTH project started 2005 expected to complete in 2014
ISO 9001 certified
BACKGROUND
About Reykjavík Fiber Network
BACKGROUND
Consumer Broadband Market Reykjavik municipality area
BACKGROUND
Why FTTH? Vision Improve quality of life and increase competition.
Utilize existing network
Utility approach
Fiber backbone network serving carriers and businesses.
Synergies with other utilities, electricity, hot water, cold water and seweage.
BACKGROUND
Why FTTH? Telecom competition
Reliable service delivery
Existing copper infrastructure getting older, based on entrybarrier business model.
Higher customer satisfaction, fewer trouble reports according to Vodafone Iceland.
Bandwidth Will be used for profitable services. FTTH is a gate for new service development.
BACKGROUND
Fiber Network overview
BUSINESS MODEL
Open Access – Active Sharing Open Access
Active Sharing
Based on the following criteria: • Limited role in the value chain • Shared investment
Reykjavik Fiber Network a wholesale operator, Service Providers provide retail services.
BUSINESS MODEL
Rollout Strategy Contracts with Municipalities Contracts with Service Providers
Use existing ducts New building areas At renewal time of utility ducts Lowest cost pr. home
Areas where terrestrial TV or TV over ADSL is difficult to reach Non-committing interest surveys
BUSINESS MODEL
Average Revenue Per User (ARPU)
BUSINESS MODEL
Consumer prices
BUSINESS MODEL
Rollout progress and Take rate
BUSINESS MODEL
Current Status Connected homes: 38.000 Rollout progress: 58% Connect rate: 99%
Subscribers: 12.000 Take rate: 32%
FTTH NETWORK
Deployment Current Network Size 449 Passive POPs 74 Active POPs 2330 Manholes 600 Splice closures 2100 km of Ducts 2700 km of Fiber cables
ACTIVE PASSIVE
MULTIDUCT
MANHOLE
MULTIDUCT / SINGLEDUCT
CTB
FTTH NETWORK
Deployment Active POP stations Designed for connecting up to 400, 720 or 1440 homes Actual connections 100 to 2000 homes pr. POP, 513 on average
FTTH NETWORK
Deployment Ducts Ducts buried in 40-50 cm depth , single ducts next to houses on 30 cm Multi ducts diameter 50 mm, with 8 or 18 micro ducts 7 and 12 mm Single ducts diameter 10 and 14 mm
FTTH NETWORK
Deployment Fiber cables Single mode fiber
Single fiber connected pr. home Average fiber length between home and POP is 518 meters About 25% of fibers not connected
