How Governments Have Made Broadband Network Rollout Possible CANTO Conference & Exhibition 22 nd – 25 th July, 2012 – Miami Andrew Gorton Group Head of.

How Governments Have Made

Broadband Network Rollout Possible

CANTO Conference & Exhibition22nd – 25th July, 2012 – Miami

Andrew GortonGroup Head of Regulatory Affairs

Regulators’ Views on Barriers to Broadband

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Perceptions of 27 European Regulators’ on supply-side factors that may be considered barriers to broadband adoption

Brazil

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Brazil: Tax Incentives

• Ministry of Finance forgoing tax revenue over 4 years on investments in fibre optic networks

• exemption on taxes for strategic capital goods, including computers and tablets extended to 2014

• taxes and import duties waived on computers for the public school system

• growing number of states are exempting broadband from VAT/GCT: agreed 14 of the 26 states (which have a total of 49% of the population)

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Brazil: Tax Incentives - State of Parana

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Brazil: Tax Incentives State of Parana

• State energy company using its fibre optic network to provide 100Mbps broadband

• Tax deferments in return for providing:–wholesale1Mbps at or below a price ceiling;– reserving 15% capacity for low income

groups paying at or below other lower price ceilings–10: 1 contention ratio required

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Austria

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Grosschönau, St Martin, and Bad Grosspertholz

Small towns, sharply declining region, exodus of businesses and young familiesSt Martin fallen to population of 1,500 from 2,500Only dial up internet3 mayors decided to install fibre optic network (FTTH)Created the “Forest Quarter Fibre Co-operative”Installed fibre optic pipes in to same trench when sewer systems being serviced which reduced cost to 1 million euros, 100% coverageFree 100 Mbps and IPTV between local addresses

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Grosschönau, St Martin, and Bad Grosspertholz

• Used IPTV system designed for hotels to keep cost down – also allows users to upload local content for viewing by others

• Cost to access internet backbone remains an issue therefore cost to do so is about 30 euros per month for 8Mbps symmetric service

• Students returning home, businesses able to collaborate more effectively and share computer servers to keep costs down, authorities using to improve local services such as flood warning information

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Germany: Sasbachwalden

• 2500 inhabitants and 177 companies spread over 13km²

• FTTH Network owner: Community of Sasbachwalden

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Germany: Sasbachwalden

• 44km network, 165km optical fibre• 22km civil engineering, 4km sewers, 6km

aerial cables, 8km new ducts or using existing ducts, 3.5km private construction

• Goes to all 1280 households in 578 buildings over 44 streets

• Investment 3.6 m euros, public funding of 1.5 m euros

• Up to 75Mbps download• Various rates

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Australia

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Australia – National Broadband Network

• National Broadband Network Company

• Government owned

• 75% Government funded – 25% to be debt

• Approx 10 year time frame to build

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Australia – NBN Objectives

• wholesale-only, open-access network.

• Connect 93% of Australian homes, schools and businesses with FTTP speeds up to 100 Mbps

• Serve remaining premises with fixed-wireless or satellite technologies with speeds of up to 12 Mbps

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Australia – Telstra Agreement

• 1/ allow NBN Co to access main fixed line provider’s (Telstra’s) infrastructure over min 35-year period

• 2/ Telstra will disconnect premises receiving services over copper and Hybrid Fibre Coaxial (HFC) network over time;

• 3/ Telstra agreed to use NBN for 20 yrs as the fixed-line connection to premises

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A Few Ideas

1/ Provide access to water and electricity infrastructure ; 2/ Map out existing infrastructure of those utilities;3/ Publicise scheduled maintenance times – so all can use to lay fibre/ducts;4/ Make this information publicly available.

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A Few Ideas

5/ Arrangements with incumbents to migrate customers and to guarantee customers; 6/ Open access for networks build with public money;7/ Broadband Champion in government to clear the way for broadband providers – get Ministries for Telecommunications, Utilities and Planning working in harmony.

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