GREEK BROADBAND ACCESS DEPLOYMENT STRATEGY
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1 GREEK BROADBAND ACCESS DEPLOYMENT STRATEGY OECD Workshop : Developing broadband access in rural and remote areas GREEK BROADBAND ACCESS DEPLOYMENT STRATEGY STELIOS SARTZETAKIS Scientific Committee Chairman Broadband Task Force Secretary for the Information Society, Ministry of Economy and Finance
2 competitiveness of a State The competitiveness of a State in the current, high-tech, digitally converging environments, is strongly related to the existence of state-of-the-art, high capacity, and high performance digital infrastructures, rationally deployed and priced, capable of providing easy, costeffective, secure and uninterrupted access to the international digital web of knowledge and commerce, without imposing any artificial barrier. Greek Broadband Task Force Secretary for the Information Society, Ministry of Economy and Finance 26oct04 2
3 Definition and Preconditions for Broadband Access capability of transferring large volumes of data between communicating systems and users emphasis on the always ON connectivity seamless transfer of rich multimedia content between providers and users, necessary pre-conditions for the successful deployment of broadband access include availability of useful multimedia content beyond a critical mass of ultra-high capacity core infrastructures, all user-friendly and attractively priced of paramount importance that the overall political and economic conditions (regulatory framework, positive investment climate and socio-economic stability) encourage the extensibility, scalability and sustainability of the access and core infrastructures, as well as the overlaying services. Greek Broadband Task Force Secretary for the Information Society, Ministry of Economy and Finance 26oct04 3
4 The New Role of the End User In open, networked societies and economies, where the rapid growth of the number of participants results to a sharp increase of the value of the overall product (network externalities), new opportunities emerge for business activity and improvement in the quality of life for citizens. imperative to view all participating users not as passive consumers but as potential providers of services and added value. Greek Broadband Task Force Secretary for the Information Society, Ministry of Economy and Finance 26oct04 4
5 The Role of the State Priority #1: generally accessible and affordable broadband infrastructure development of relevant applications and services development and use of broadband services by the Public Administration, particularly in the sectors of Education and Health a major enabler in raising awareness and ensuring penetration of these services across the State, promoting their use to citizens and businesses. The State, by actively promoting the development of broadband infrastructures and services is a catalyst in Greece towards the targets laid down in the European Initiative eeurope 2005 Greek Broadband Task Force Secretary for the Information Society, Ministry of Economy and Finance 26oct04 5
6 The situation in Greece deregulation: Greek regulatory framework to encourage competition in providing broadband infrastructures and services Local Loop Unbundling (LLU) since development of new fixed wireless access and satellite technologies provides the legal framework and the technical feasibility for private investments international experience (and more so Greek reality) shows that the above opportunities have not been exploited to a satisfactory degree reasons relate to the later deregulation (compared to the other EU members) recession in the sector over the last four years difficulties faced by telecommunications organisations at a global level (particularly after the large capital drain of 3rd generation mobile telephony licenses) and technical - financial difficulties in dealing with historical telecommunications monopolies (e.g. determination of interconnection costs and collocation). Greek Broadband Task Force Secretary for the Information Society, Ministry of Economy and Finance 26oct04 6
7 Greek Reality combination of the intrinsic characteristics of the local market + lack of real competition in telecommunications up to recently (with the notable exception of mobile telephony), have only allowed for the slowest development of broadband access in comparison with our partners in the EU and the OECD Broadband task force bold and ambitious goals are set, yet at the same time realistic and feasible to implement within a short time-frame new business models will be pursued in the competitive broadband access market, since the traditional fixed voice telephony provision and tariffing models do not seem to be adequate to handle advanced infrastructures and telematic services for public services as well as profitable business offerings. Greek Broadband Task Force Secretary for the Information Society, Ministry of Economy and Finance 26oct04 7
8 Broadband penetration grows slow 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% France Germany Italy Japan Korea Sweden UK USA Greece 2002 prediction 2004 prediction 0.0% current Source: Analysys, 2002 Household penetration projections Greek Broadband Task Force Secretary for the Information Society, Ministry of Economy and Finance 26oct04 8
9 Proposed forms of State Intervention Broadband services require the existence of fibre optic core and MAN networks at national and regional level in order to serve the end user, the development of dense, broadband infrastructures at the local access level (last mile) is required In the short term it is important for solutions such as xdsl, wi-fi and satellite services to be available at affordable prices in remote areas, so as to encourage demand and generate the conditions for a competitive market Greek telecommunications market still continues to depend on the core fibre optics networks of the dominant provider (OTE). New entrants have just begun to install broadband infrastructures, mainly fibre optic, collocated DSL and LMDS access. Greek Broadband Task Force Secretary for the Information Society, Ministry of Economy and Finance 26oct04 9
10 Proposed forms of State Intervention (ctd) the State can use the following policy instruments: laying down the statutory and regulatory frameworks and targets for the implementation of new by Greek standards mixed business models in which the private sector participates with the State, following successful international practices, as a major user of network services, as enabler and manager of direct and indirect interventions in the sector via programs which lead to forecasting and covering market failures, something which cannot be achieved using other means. Greek Broadband Task Force Secretary for the Information Society, Ministry of Economy and Finance 26oct04 10
11 well balanced and well targeted interventions regulatory actions increasing awareness monitoring and benchmarking focus on the public sector as a key user Accelerating broadband enable public-private joint ventures initiate first wave projects supply and demand incentives Greek Broadband Task Force Secretary for the Information Society, Ministry of Economy and Finance 26oct04 11
12 aggregation, synergies aggregating demands of Public Services (e.g. Public Administration, Health, Education etc.), thus creating massive broadband requirements and consequently encouraging the development of the necessary network infrastructures can then be used to provide corresponding services at low prices to the public in a relevant geographical area. development will result from collaborations among Municipalities, Regions, Telecommunications Carriers, Service Providers and Institutions from the Education, Research, Health and Public Administration sectors, resulting directly in the familiarisation of citizens and raising their awareness on what is technically available and how it can improve their quality of life. Greek Broadband Task Force Secretary for the Information Society, Ministry of Economy and Finance 26oct04 12
13 awareness, demand, deployment after extensive deliberations amongst the members of the Task Force and taking into consideration the international best practices and consultation results, basic recommendations and specific actions, following a well-defined time schedule, are proposed: the development of Regional Fibre Optic Networks among others, by 2006 establishment of a National Public Administration Network superstructure promotion of certain issues related to the creation of necessary conditions for a healthy and competitive market Greek Broadband Task Force Secretary for the Information Society, Ministry of Economy and Finance 26oct04 13
14 Targeted projects can create momentum W-LAN hotspots Subsidies to SMEs Specific fibre networks A low-cost, high impact initiative Matches grass-roots roots concerns Focussed demand-side intervention Rapid implementation and benefits Tests public-private private partnership models Longer lead-time and higher cost, but an important learning process Greek Broadband Task Force Secretary for the Information Society, Ministry of Economy and Finance 26oct04 14
15 projects (1) 1) project for broadband access pickup in remote areas local access broadband provision (public tender for providers beginning 2005, budget 184 Μ,, 50% funding, Ministry of Transport and Communications) to develop broadband access in rural, remote, and undeserved areas complement, upgrade, accelerate penetration of broadband with the target: broadband service availability to the end user all over the country at affordable prices and a minimum level of quality synergies with the rest of the projects of information society (public administration network syzefxis,, IKA, TAXIS). Greek Broadband Task Force Secretary for the Information Society, Ministry of Economy and Finance 26oct04 15
16 projects (2) 2) Municipality optical MANs (initial budget 36 π.93) 36 Μ π.93 public sector sites interconnection MAN in major cities 65 municipal proposals in the process of acceptance by end of October to be accepted in 2004 local projects tenders in 2005 MANs operational in 2006 business model in 2005 public sites broadband access (eeurope2005 targets, syzefxis extension 27 Μ π.105 ) global connectivity for remote public sector sites not covered by syzefxis. connection to more than one public site in remote areas. support for education sites access to NREN Greek Broadband Task Force Secretary for the Information Society, Ministry of Economy and Finance 26oct04 16
17 projects (3) 3) broadband demand promotion - awareness increase Wireless Hotspots 21,5 21,5 Μ 250 businesses, 50% funding creation of in-business or public hotspots broadband services demand promotion (broadband culture) 11,5,5 Μ Μ π projects wired-wireless wireless broadband demos in kiosks around the country public hotspot free access for the project duration ( ) 2006) broadband services promotion studies registering local broadband demand Greek Broadband Task Force Secretary for the Information Society, Ministry of Economy and Finance 26oct04 17
18 projects (4) 4) satellite broadband access to remote undeserved areas 11 Μ (2000 isolated public sites: education, health, local government) BROADBAND SERVICES: business plans co-funding π.95 Advanced broadband services for special groups of the population Smart buildings and special infrastructures Greek Broadband Task Force Secretary for the Information Society, Ministry of Economy and Finance 26oct04 18
19 GREEK BROADBAND ACCESS DEPLOYMENT STRATEGY THANK YOU! all material publicly available at: Strategy Whitepaper material on specific actions - Broadband Task Force Secretary for the Information Society, Ministry of Economy and Finance
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