1 © 2005 Cisco Systems, Inc. All rights reserved. Cisco Confidential Broadband Government: A Cisco Roadmap for Execution Prem Kania Business development.

1© 2005 Cisco Systems, Inc. All rights reserved. Cisco Confidential

Broadband Government: A Cisco Roadmap for Execution

Prem Kania

Business development manager Local Government


Trend: Broadband is still in its infancy in most markets

Worldwide 21% CAGR (2003-2008)• 97 million subscribers in 2003

Sources: Cisco IBSG, November 2004, Ovum South Korea Broadband Snapshot, Point Topic, Goldman Sachs Investment Research, Company data

• 251 million expected by 2008

U.S. and Europe expected to reach 60% penetration

by 2010

2003

* Estimated

201015%

75%

60% 60%

90%*

20%

South Korea U.S. Europe


A FAIR SOCIETY, REDUCTION OF THE DIGITAL DIVIDE

First Rationale for Broadband Deployment

– INCREASE INTERNET LITERACY

– LOWER INCOME FAMILIES

– OLD PEOPLE

– IMMIGRANTS

– EDUCATIVE PROGRAMS

– IMPROVE CHANCES

– ELECTIVE PLATFORM

– RECOGNITION FROM PEERS (& STATISTICS…)

– GOAL OF CITY EXCELLENCE


• Very low access to ICT

• 30% of residents had no access to phone

• Significantly deprived area

• Higher than average unemployment

• The Package• Training, Equipment & Support• Wireless Network and Broadband• Finance

• Grants

• Resident Contributions

• East Manchester Credit Union

• Community Involvement

• Residents’ Panel

• Community Champions

• Community Groups

eInclusion: Manchester


Broadband Education: Stockholm

Size: 145 Compulsory Schools, 25 High Schools, 90.000 students, 8.000 teachers

Speed: 1 Gigabit Ethernet, 100 Megabit into every classroom

• School portal

–Communication

–Planning

–Virtual classroom

• 30 High School courses

–web based - open for all

• 400 educational films streaming

• Personal e-mail address from age six

• ID through biometry for the youngest


Eindhoven Broadband Visionas stated by the Eindhoven City Council on September 22th, 2003

The municipality of Eindhoven will actively endorse that, in principle, all inhabitants, companies and institutions within the city boundaries will have access to an open, high-grade, fibre-optic local access network, by 2010.

• Kenniswijk-experiment>100 experimental services delivered or under construction

• Municipal servicesSearchable video database of City Council meetings

City video surveillance using the publicly owned optic network

Eindhoven City Journals from 1956 - now

Geoinformation and 3D-models under construction

• (Semi-)public servicesE-Learning -> broadband content for education

Mobility -> pilots on road- and traffic monitoring

E-Health / E-Care -> www.viedome.nl


Kennisnet – Netherlands schools

Public-Private Partnership to bring Broadband to all Dutch Schools

Strong emphasis on Standardisation

Building and Empowering the Teaching Community


Portuguese e-U Broadband

Creating the Wireless Broad Band Nation

• Biggest University WIFI Telecommunications

Network Worldwide

• National e-Learning Platform

• 400.00 users

• 5.000 Access Points

• 170 Hot Spots

• 100% Portuguese Private and Public Universities


Healthcare and Inclusion

Comunita’ Valle Canobbina (Italy)

4 alpine mountain villages over 11000 hectares, 6000 people

Population (and health services availability) decreasing and aging

3 days needed for simple medical check and tests

9 Local health centers wireless-enabled

Secure network infrastructure for communication and data transfers

Access to specialists via Videoconference

Next: Online prescriptions


PUBLIC SECTOR: COST REDUCTION & GREATER EFFICIENCY

Second Rationale for Broadband Deployment

– FORMS PROCESSING

Manual Cost: 3.5 €*

On-line Cost: 0.5 €*

– CITIZEN “CUSTOMER SERVICE”

– OVERALL ACCESSIBILITY 7/7 24/24

– LESS BUREAUCRACY

*: E.g. Tax forms, source: Meridien Report, June 2002

– INCREASED EFFICIENCY IN KEY SECTORS

– EXCELLENT FIT FOR NEW DEMANDS OF SECURITY

– ENHANCED QUALITY OF LIFE


Cost savings - Employee Services

• Intranet (authorizations for employees, expenses paper, directories, E-learning, etc.)

• Mobile Communication (blackberry for executives, mobility solutions for employees)

• Digital Signature (for executives and external users)

• Video on Demand (internal/external)

8,1M€ Net Present Value in 5 years


Public Services - LocalRet Catalunya • Multimedia access to Public

Services (www, phone, office)

• Single platform for eGovernment services

• citizen identifier,e-signature, docs register, content manager, inter-admin exchange modules, warnings, payment, etc)

• Used by State, Region & Cities

• Citizen and Businesses centric, lifecycle-based

• Award winning initiative (EU, Stockholm Challenge, etc)

A regional broadband infrastructure is the

Key to success


Safety: Westminister Wireless City

• Objectives:

Reduce crime

Streamline Parking

Regulate entertainment

Commercial waste

Better Housing services

• Metro Mobile Network

Cost reduction

Mobile access to field workers

Better productivity / move to multi functional staff

New services

• 150 WiFi Cameras on Light Lamps to monitor behaviour

• Invest-to-save model


Broadband Healthcare: Arras

Arras Hospital modernization

Clinical tools and processes integration, Teleconsulting

New Intranet applications

Patient Records accessible to the GP community

Impact

30% increase in activity

Satisfaction patient and GPs

Recognized as a leading hospital

Requirements from local authorities

Broadband Infrastructure to share patient data with GPs


BOOSTING THE ECONOMY

Third Rationale for Broadband Deployment

– TELEWORKING

– ATTRACTING ENTERPRISES

– REGIONAL EXCELLENCE… and beyond!

– and private investment…

# 1# 1

– Web Cafés

– EMPLOYMENT


The City of Almere Broadband initiative

passive infrastructurepassive infrastructure

active infrastructureactive infrastructure

servicesservices

ductsducts

fibersfibers

ODF/patchODF/patch

CPE consumerCPE consumer

lasers, routers,switches, etc.

lasers, routers,switches, etc.

usersusers providersproviders

R/TVR/TV

internetinternet

telephonytelephony

new servicesnew services service management

broker

First Mile Ventures

Municipality (AFCo)

helpdesk

back-office

CPE businessCPE business

Almere Fiber Pilot Initiative

• Challenge: Population growing at 8%, employment growing at 5%

• Solution: Increase Economic profile of the City by deploying a high speed fiber infrastructure

• Result: Companies relocating to Almere (IBM, ASM, etc)


Oulu – Broadband and Economic Development

Objectives by 2006

150 new businesses

6,000 new jobs

€ 1.5 billion of new turnover

Funding

Public funding € 180 million

Private funding € 130 million

Broadband as enabler: Combination of Metro and Wireless


e-wro project

• e-wro project that’s working MAN network based on fiber cabling (METRO network) relized by Municipal Heating Power Distribution Company in Wrocław

• Network ready for triple play: brodband Internet access, Voice over IP, Video on Demand and other digital services

• Broadband Internet access is delivered to every single home user – not only corporate users.

• Easy, fast, the best way of comunication – we have it done !


…but public services are not enough. High ARPU for Service Providers guarantees the profitability of the overall model…

ARPU: Average Revenue per User


“Killer Applications” – no one single application has emerged - but bundles work

•Enhanced programming

•VOD and NVOD

•Video/audio streaming

•On-line gaming

•Enhanced advertising

•Walled Gardens•Virtual models and tours

•“Click and talk“ audio/video support

•Email, chat, and instant messaging

•Unified messaging

•PC- and cable-based telephony •Video conferencing

Always on

(Flat fee)

High speed

Many trials of new products/ services are being carried out


As Broadband Penetration Grows a New Wave of Services Arises

Security and Data Services

• VoIP• Video Telephony• Mobility

Advanced Communications Services

Entertainment Services

• Video on Demand• Music on Demand• Internet Radio

• VPN• Firewalls• Parental Controls

$1.5bn to $12bn 2004 2008

2004 2008

$2.2bn to $28bn 2004 2008

BroadbandAccess

$1.5bn to $5.5bn 2004 2008

• Security• Monitoring• Utility

Management

Home Management Services

Source: Cisco IBSG, January 2005

$41bn to $110bn 2004 2008

$1bn to $20bn 2004 2008


Models :

NETWORK(Backbone and Access)

PHYSICAL INFRASTRUCTURE(Dark Fiber)

Municipality or Public Utility

Several Service Providers competing

Relevant Business Model Scenario: Equal Access

ACCESS, SERVICES AND CONTENT

Several Service Providers competing

1 Service provider


Models :



Relevant Business Model Scenario: Full Public control through PPPs



Models :



Relevant Business Model Scenario: PPP Orchestrated



Models :



Relevant Business Model Scenario: Public Sector Telco


Government and/or Public Utility

Several Service ProvidersCompeting


Models :



Municipality or Public Utility

First step: 1x Service Provider

Relevant Business Model Scenario: Mixed / Transactional


STOKABSTOKAB

1 © 2005 Cisco Systems, Inc. All rights reserved. Cisco Confidential Broadband Government: A Cisco Roadmap for Execution Prem Kania Business development.

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