Broadband Cost Reduction Directive 4 November 2015 European Utility Week, Vienna

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1 Broadband Cost Reduction Directive 4 November 2015 European Utility Week, Vienna Wolf-Dietrich Grussmann Head of Unit Regulatory coordination and business DG Connect, European Commission

2 Directive 2014/61/EC - Objective Rolling out high-speed communication networks is expensive BUT: Up to 80% of the costs are linked to civil engineering Reduce costs by 20 to 30% and exploit synergies with utilities and other infrastructures (energy, water, transport)

3 Scope of application Obligations on "network operators" Network operators: telcos & utilities Gas, electricity, public lighting, heating, Water, including waste water and sewage, Transport services Concerns all projects, not only broadband!

4 Four pillars Directive 2014/61/CE Access to passive infrastructure Coordination of civil works Streamlining permit granting In-building infrastructure 4

5 Directive 61/ Roadmap Commission proposal: 26 March 2013 Adoption 15 May 2014 Transposition 1 January 2016 Application: 1 July 2016 In building physical infrastructure 31 December 2016

6 Actions to be considered for infrastructure projects Broadband projects Can existing infrastructure be reused? Check potential for civil works coordination with other projects Non-broadband projects Map infrastructure and available capacity Predefine conditions for access Publish information on future civil works (6 months in advance) Invite interested parties to join civil works (1 month before final submission of permit granting) Reserve capacity for ECN, future demand

7 Best practice fibre deployment in sewers - Barcelona Successful fibre deployment in large sewers (500 km between ) Legal framework between Authorities, Sewer Managers and Communications Providers to regulate deployment Pilot testing of robotic technology in small diameters Concept - only duct installation inside the sewer; other items that require handling by Communication Providers housed within civil works outside the sewer; No access to sewer is needed for Communication Providers; Operation works (cleaning) do not damage conduits Deployment managed by Sewer Manager holistically; Sewer Manager develops planning, design, construction and maintenance of the facility based on Sewer Master Plan; preventive, corrective and after rain maintenance; the experience suggests that only large sewers allow proper installation and maintenance.

8 Best practice cross-sector co-investment between the Irish electricity company (ESB) and Vodafone Through public tender Vodafone was selected to become ESB Joint Venture partner SIRO, the JV, leverages complementary skills and existing ESB infrastructure (poles, ducts) Deployment of FTTH to 50 regional towns and 500K households 450m investment in Phase I The SIRO JV model: Private-led co-investment solution to bridging the urban-rural divide for fixed ultra-fast broadband Structurally a wholesale only and carrier neutral entity ensuring effective retail competition FTTH a future proof and pro-competitive technology Point of interconnection

9 Best practice FTTH Project Vejen Municipality - Denmark Vejen a rural municipality; started with a vision in 2002; step by step implementation by municipality and network operators Vejen now - among leading regions in Europe; 8 out of 10 houses connected to high speed fibre network Successful cooperation between municipalities and two local utility companies owned by consumers & constant strive for long-term & future- proof solutions Synergies sought at all levels: passive infrastructure (coordination of digging & other civil works, coordination of development of supply networks e.g. fibre & electricity, Smart Grid); network operation (coordinated operation of fibre and electricity networks, shared housing of equipment, common & centralised monitoring and support of networks), service deliverance (Smart Cities & Communities, IoT, intelligent supply system) Benefits to investors but added value for community important driving factor look for proper local solutions

10 Best practice fibre deployment on electric poles - Norway Cables installed on telco and energy poles Lightweight self-supporting fibre cable; fast & efficient installation No building permit required only authorisation of the poles' operator/owner Technology widespread in mountainous and suburban areas Deployment of distribution and access networks in Bergen municipality in Norway ongoing since 2012 Installation of over 200km of cables in areas with difficult access (mountains, lakes) Over 1800 clients connected in FTTH network architecture

11 Thank you for your attention! Get more info and join discussion! Broadband Europe Cost Reduction Measures https://ec.europa.eu/digital-agenda/en/broadbandeurope https://ec.europa.eu/digital-agenda/en/measuresreduce-cost-high-speed-broadband-roll-out-0 Contact:

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