László Binder Hungaro DigiTel Plc [email protected]

09/10/2009 SFERA Annual Conference 2009

László Binder

Hungaro DigiTel Plc

[email protected]

Improving the Deployment of Innovative Broadband Networks in European Regions

Broadband means more than browsing or

peer-to-peer & downloading

09/10/2009 SFERA Annual Conference 2009

Not about ..

Topics not treated due to their over-representation in the communication:– Internet and particularly broadband penetration– Reasons of low penetration (geographical/social factors)– Actual traffic and pricing statistics– Evident correlation between bandwidth and data

processing/management tools/real-time professional networking’s benefits to economic recovery via productivity gains

09/10/2009 SFERA Annual Conference 2009

Contents

The intention of this contribution is to deal with long-term effects of wide-spread public usage of broadband communication:

– Application-driven development

– Access-oriented strategy

– Financing

– International know-how exchange initiative

Advantages of VSAT-based solutions are evidentlydemonstrated by Hungarian experience

09/10/2009 SFERA Annual Conference 2009

Application-driven development

All Services(public + private)

Access channels:- Home PC- Mobile phone

Communication:-3G mobile network-WiMAX-Optical fibber1st Step

2nd Step

Access channels:- Public PC (e.g. kioks)

- ATM

Communication:-Satellite

Public services(e-Gov, payments)

2nd Step: Access to all types of services (public and private).

1st Step: Access to public services. Requires state initiative.

09/10/2009 SFERA Annual Conference 2009

Access-oriented strategy

Physical access• Telecom network• Local terminal

User-friendly procedures•Technology neutrality•Easy interaction

Non-discrimination of• Remote locations• Lower education level• Language base

Network construction• Timing and reach• Flexibility

Application development• PPP model• Priority for user-oriented

business advantages

Marketing• Common efforts of

government and business partners

09/10/2009 SFERA Annual Conference 2009

Telecommunication infrastructures

Key Factors Terrestrial links[e.g. optical fibber]

Satellite Mobile network[e.g. 3G]

Network InvestmentVery High

[depends on the distance]

Very Low[independent of location]

Very High[base station, backbone]

Service fee Low Middle-high Middle-Low

Complexity of network installation[e.g. environment, contracts]

High Very low High

Time needed for network implementation

Years Days - weeks Months – years

Compatible to “Core” and “Complementary” services

Yes Yes Yes

Key Factors Terrestrial links[e.g. optical fibber]

Satellite Mobile network[e.g. 3G]

Network InvestmentVery High

[depends on the distance]

Very Low[independent of location]

Very High[base station, backbone]

Service fee Low Middle-high Middle-Low

Complexity of network installation[e.g. environment, contracts]

High Very low High

Time needed for network implementation

Years Days - weeks Months – years

Compatible to “Core” and “Complementary” services

Yes Yes Yes

Telecommunication infrastructures to be considered:

Satellite is the most appropriate solution to start.

09/10/2009 SFERA Annual Conference 2009

Public-net (e-gov +e-education) network

400 sites installed within 6 weeks in no-DSL regions

09/10/2009 SFERA Annual Conference 2009

End User service access channels

Single/multiple user access channels to be considered:Advantages Disadvantages

In a primary phase shared access should be prioritized.

Private PC+ Compatibility with all type of services

+ Convenience- End user costs (terminals, connectivity)

Mobile terminal+ Mobility and ubiquity

+ Appropriate for payments- End user costs,

Public PC [e.g. kiosks]

+ Compatibility with all type of services

+ No costs for end users

+ CAPEX and OPEX efficiency [1:N]

- Convenience (less than Private PC)

ATM terminals

+ Secure and user friendly interface

+ No cost for end users

+ CAPEX and OPEX efficiency [1:N]

- Limited services (mainly for payments)

09/10/2009 SFERA Annual Conference 2009

Financing

CAPEX (telecom background, application development) traditionally supported by EU and government funds

OPEX to be financed by– business partners and

– (contrary to the present practice) by EU and government funding

– as well as by user fees

09/10/2009 SFERA Annual Conference 2009

Scenario: 100 settlements connectivity 10 km away terrestrial line (each) 3 years contract 2 Mbps / 512 kbps

Satellite Terrestrial links

CAPEX ≈ 30 million HUF ≈ 3 500 million HUF

OPEX ≈ 162 million HUF ≈ 21 million HUF

T.C.O. ≈ 192 million HUF ≈ 3021 million HUF

Cost comparison on TCO basis

09/10/2009 SFERA Annual Conference 2009

International know-how exchange initiative

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May 2009 Hungary - Portugal: Best practices and e-

Government

Main Focuses:

Exchange of experiences Business development Partnership for the future

Establishment of Cooperation between:

ITD Hungary and AICEP Portugal Global Technical University of Lisbon (UTL) and Budapest

University of Technology and Economics (BME)

09/10/2009 SFERA Annual Conference 2009

Hungaro DigiTel sales pitch to concludeSome reference partners

1212

Visit our new station in Raday utca

Coffe time: Try for free our deliciou

Visit our new station in Raday utca

Coffe time: Try for free our deliciou

Some reference applications

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HDT a joint affiliate of TDF and PT runs over 4500 sites (95% of Hungarian market)