Media Conference Into the fibre-optic future with "fibre suisse" Zurich, 9 December 2008
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1 Media Conference Into the fibre-optic future with "fibre suisse" Zurich, 9
2 Programme 2 Address by Carsten Schloter CEO Swisscom Presentation by Patrice Haldemann Head of Rollout & Access, Swisscom On-site tours: Building the new fibre-optic network Aperitif
3 Presentations Content 3 Swisscom drawing on 150 years of telecommunications "fibre suisse" the model with the greatest customer benefits How we are building our network In-house cabling as an industry solution
4 Swisscom drawing on 150 years of telecommunications 4
5 When it comes to fibre-optic penetration Switzerland is among the leaders 5 100% FTTx (% of households) 80% 60% 40% Germany Japan Belgium USA South Korea Switzerland Taiwan Sweden 5m broadband subscribers FTT Home FTT Building FTTN VDSL CountryInfrastructure competition 20% China Denmark Turkey Poland Argentina Mexico Brazil Russia India Italy Canada 0% Spain Netherlands Australia France UK 0% 20% 40% 60% 80% 100% Broadband subscriber (% of households) (Source: Alcatel-Lucent analysis)
6 Switzerland owes its first-class infrastructure to healthy network competition 6 Cable HUN POL GER IRE AUT CZE DSL NOR ISL SPA SWE FIN USA FRA DEN POR BeNeLux Switzerland JAP Korea UK Coverage of households by technology, 2006 (Source: OECD Telecommunication database) Cable network providers, Swisscom and electrical utilities are investing in fibre-optics. This is driving up network competition.
7 More to fibre-optics than meets the eye: The three main layers of the fibre-optic network 7 The service layer for product applications Enables service offerings for telephony/internet/tv Supports certain innovative advances Entails relatively low investment The technology layer for network intelligence (Layer 2) Actual network intelligence for managing data packets Enables innovative quantum leaps and supports end-to-end quality promise Entails higher investment The cable infrastructure as a structural requirement (Layer 1) In-house cabling, cable conduits, ducts, Not important for innovation Accounts for 80% of investments
8 Criteria for sustained network competition 8 Facilitate competition wherever market value and customer benefits can be generated Avoid unnecessary duplication of expensive ducts (80 per cent of costs) Give business partners with or without their own cable duct infrastructures (ducts) access to the fibre-optic cables of network providers Define standards for home installation
9 "fibre suisse" proposed as a means of sustaining network competition 9 Every provider wishing to build a new network infrastructure lays one fibre-optic cable containing multiple fibres The unused optical fibres are offered to interested network operators for sale or exchange Network providers with their own ducts cooperate in laying fibre-optic cabling this will ensure optimal utilisation of the existing cable ducts Network operators offer to lease individual "naked" optical fibres as well as comprehensive transmission services to interested service providers who do not wish to invest in their own cabling
10 "fibre suisse" vs. single-fibre model Competition vs. monopoly 10 Technology level Service level "fibre suisse" model (with cooperation) Competition Competition Single-fibre model (without cooperation) Monopoly Competition "fibre suisse" enables competition at the network level "fibre suisse" takes the regulatory history into account and avoids the need for new access regulations "fibre suisse" meets competitors' requirements for full access to the local loop (copper pairs) as stipulated by the Telecommunications Act
11 Comparison: "fibre suisse" beats the single-fibre model 11 Customer benefits "fibre suisse" Largest possible choice of products Single-fibre model Restricted choice of products due to uniform technology Alternative providers Option to choose between several networks and to use own optical fibres No choice of network possible; no use of own optical fibres Price trend Technology and innovation Lower prices due to competition at all value-add levels Always the most efficient technology Poss. higher prices due to lower cost pressure on individual network providers Technological innovation at risk as model does not allow parallel operation Regulation Possible without regulation Regulation required
12 "fibre suisse" is open to all interested partners 12 High Willingness to invest Construction partnership Partners with their own ducts such as electrical utilities or cable network providers Investment partnership Partners without their own ducts Leasing of individual optical fibres For service providers with own technology but no network Low Leasing of transmission services For providers without their own network
13 Presentation 13 Patrice Haldeman Head of Rollout & Access Swisscom (Switzerland) Ltd
14 Demand for bandwidth doubling every 20 months 14 1 Gbps 100 Mbps 10 Mbps 1 Mbps 10 Kbps 100 Kbps Super HDTV Full-screen video conference Full home office HDTV Telemedicine Streaming Web TV Web 1.0 Immersive presence 1 Kbps
15 Development of the broadband infrastructure: First phase with DSL equipment in exchanges 15
16 Development of the broadband infrastructure: Second phase with " fibre to the node " 16
17 Switzerland has the world's best telecommunications infrastructure: Swisscom's contribution is significant! % broadband coverage according to basic service provision 98% ADSL coverage: The world's best telecoms infrastructure: according to "The Economist" 2007
18 Switzerland has the world's best telecommunications infrastructure: Swisscom's contribution is significant! % broadband coverage according to basic service provision 98% ADSL coverage: 75% VDSL coverage The world's best telecoms infrastructure: according to "The Economist" 2007
19 Switzerland has the world's best telecommunications infrastructure: Swisscom's contribution is significant! % broadband coverage according to basic service provision 98% ADSL coverage: 75% VDSL coverage 90% HSPA coverage The world's best telecoms infrastructure: according to "The Economist" 2007
20 Development of the broadband infrastructure: Last stage with FTTH 20
21 The fibre-optic network Constructions & costs 21 Investment share: 43 % Investment share: 42 % Investment share: 15 %
22 At present Swisscom is building the network in Zurich, Basel and Geneva Lausanne, Berne, St. Gallen & Fribourg 22 FTTH expansion From autumn 2008 From 2009 Basel Zurich St.Gallen Geneva Lausanne Berne Fribourg Targets: End-2009: 100,000 households connected End-2015: 1/3 of the population connected
23 Home installation and who is responsible for it 23 Responsibility lies with: Swisscom or partners 5. Home owner End user (home owner)
24 Questions from the floor 24 Thank you. Any questions?
25 Today's visit: Fibre-optic expansion on-site locations: Limmat exchange: 1. Fibre-optic an overview 2. Exchange 3 Zurich Wipkingen: 3. Manhole 4. Distribution cable network 4 Blumenhalle (aperitif): 5. In-house cabling Plus: Splicing Fibre-optic model
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