Leading infrastructure builder in Norway - 40,000 km fiber
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Connecting more then 90 Norwegian cities from north to south
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Strong redundant metro structures
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Fiber rollout in 178 municipalities over the last 2 years
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Investment level NOK 500 million per year
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Owned by EQT- Northern Europe’s leading private equity company.
Norway in a nutshell 17 people per square kilometer 1 person per square kilometer north of Trondheim Oslo - Hammerfest = Oslo – Athens
96 % of Norwegian companies have less then 50 employees The world´s biggest sovereign wealth fund Current government ambition: 100 Mb/s to all within 4 years…
… at cost € 2,4b – 3,6b Challenging climate for infrastructure, building and maintenance Roll out cost is high, complicated bureaucratic system
Burying the value creation • •
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Trenching constitutes 80% of total costs related to rollout of high speed broadband We have 428 local trenching regulations in Norway – Rollout costs vary by 2000% per meter – Approval procedures varies from half a day to half a year EU are looking to implement new regulation that cut costs related to digging with 30%
The Norwegian broadband challenges • •
Climate and distances complicate the development of a coherent national infrastructure Delivering broadband to small, rural communities is not commercially viable… – – – –
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Enormous distances Low population density Lack of private business demand Tough weather conditions
…but these communities are as dependent on the infrastructure as cities and security demands are equally high Not robust, many situations of network failure The building of infrastructure is not coordinated, which makes it impossible to get a national, robust ultra broadband – –
Numerous very small players – 120 utilities Government funding without any national, coordinated infrastructure/network plan
Enabling Integrated Operations
What we are struggling with on-shore we have succeeded with off-shore – without public funding!
What we are struggling with on-shore we have succeeded with off-shore – without public funding!
About Tampnet • • • • •
Niche telecom carrier with core focus on the offshore Oil & Gas Industry 14 years experience in providing high speed, low latency offshore communications Established by Statoil in 2001, acquired by HitecVision August 2010 Tampnet acquired NSC from TeliaSonera in August 2011 Acquired by EQT in 2012 • Providing high-capacity and low-latency infrastructure based on; − −
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Subsea fibre optic cable system Line-of-Sight solutions Wireless communication (LTE/4G) for mobile units
~100 fixed offshore assets are connected to the infrastructure Acquired Airtap in Gulf of Mexico spring of 2014 Acquired CNSFTC from BP in 2014 Aberdeen office opened in 2014
Tampnet; • Being the common network and infrastructure “planning department” for the entire North Sea • Securing robustness for all players through diversity and redundancy – building across other infrastructures • Taking some of the roles we are missing on-shore
Critical Infrastructure
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Norway daily oil & gas production is approx. 1.800.000 barrels of oil – daily revenue approx USD 180.000.000 Oil & gas companies implementing Integrated Operations – remote operating and controlling platforms and sub-sea installations/equipment from terrestrial control centers Integrating mobile units/vessels into platform operations – LTE as carrier Dependent of 100% availability from low latency, high speed communication
Even more challenging conditions for broadband infrastructure !
Magnus Murchisson Eider Thistle Snorre Tern Gullfaks C North Cormorant Brent Cormorant A Gullfaks A Heather Kvitebjørn Ninian C N Alwyn Veslefrikk Troll A Martin L Oseberg Brage Bressay Bruce Beryl B Heimdal Mariner Kårstø Alvheim Beryl A Jotun B
The Tampnet Infrastructure
Harding Brae E Brae B Brae A
Claymore
Piper B Scott Alba
Balmoral Andrew Britannia Forties B
Buchan Forties Unity Forties C Kittiwake Nelson Gannet Triton
Public Sector – the biggest market segment of network service users ? • Estimated annual spending on network services - NOK 24 billion • No coordination related to potential development of national infrastructure and networks • No aggregated use of Public sector purchasing power • In addition the government is subsidizing fragmented, local infrastructure development •
Not including state controlled limited companies
State
50
County
150
Municipal
450
Today´s public tenders and telecom market building principles No co-ordination of public procurement of networks services
How it could be solved with co-ordination At a lower cost, systematically establishing higher level of robustness and security
Change of the Regulators role key to future robust networks From Telco watchdog to Network planning, developing and safeguarding the digital infrastructure • • •
The traditional role of regulators in dismantling Telco monopolies is redundant Policy and regulation must be modernized for the 21st century The role of the regulator must shift from dismantling monopolies to ensuring a robust digital infrastructure – – – – –
“National infrastructure and network planning department” – on behalf of all market players and public sector Commitment to long-term growth of the digital economy Remove barriers to expansion of digital infrastructure Modernization of policies and regulations to encourage investment and innovation Public sector bid-coordination office – securing maximum infrastructure development related to public network service tenders
Enter the new Super-department of Digital Infrastructure •
Owning the national network planning
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Mandatory reporting of all infrastructure development All public acquisitions are coordinated by the Super-department Using the Public purchasing power to fund a robust infrastructure development
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Active role in national emergency planning Secure diversity and redundancy in public infrastructure Managing coherent national framework for infrastructure development
Norway should look to Britain • • • • •
UK´s Public Services Network is a great example PSN is a “network of networks” for the public sector, integrating existing commercial networks in a public super network For example Ministry of Defense will move from 19 separate networks to a single defense network, saving GBP 700 million Total PSN savings are estimated at GBP 500 million per year from 2014 As of this year, PSN will serve 80% public sector users
