BROADBAND DEPLOYMENT: The example of Lithuania
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1 BROADBAND DEPLOYMENT: The example of Lithuania Giedrius Pūras Deputy director Communications Regulatory Authority of the Republic of Lithuania (RRT) BEREC EMERG EAPEREG - REGULATEL SUMMIT Challenges for Telecoms in the new Internet ecosystem 2-3 July 2015, Barcelona
2 Lithuania. profile Population: 3 million Territory: km 2 Rural population: 34% 2
3 BB in Lithuania - situation today 3
4 LT today: High penetration of FTTH/FTTB 1 st Europe 7 th World 4 psl
5 Asia Europe Vilnius NGA and Universal Broadband 5
6 LT today: high speed BB Vilnius and Kaunas among cities with the fastest data upload and download rates (May 2014) 6 psl
7 LT today: very low prices Fibre access (>30 Mbps) ~ 10 EUR/month 7 psl
8 LT today: high speed internet usage In 2009 In the end of Mbps 17,1% Mbps 17,7% >100 Mbps 3,2% Mbps 44.6% >100 Mbps 12.2% <2 Mbps 3.2% 2-10 Mbps 39,6% <2 Mbps 22,5% Mbps 15.6% 2-10 Mbps 24.4% > 30 Mbps 57 % 8
9 LT today: high NGA penetration Source: European Commission 19 th report 9 psl
10 BB in Lithuania - insights for reasons 10
11 BB development factors 5 main reasons: 1. Shared use of infrastructure. 2. Cable TV operators the first to benefit from open infrastructure. 3. Regulatory measures on incumbent operator. 4. Wireless broadband (M2F competition) 5. State aid (rural connectivity - RAIN projects) 11 psl
12 1. Shared use of infrastructure / Law on Telecommunications Regulations on shared use of telecommunications infrastructure Law on Electronic Communications Symmetric Obligation to share passive infrastructure suitable for construction of electronic communications networks Detailed Regulation on 1. Construction of network infrastructure 2. Infrastructure sharing Discussions on possible introduction of co-building procedure within Telecom sector (was not introduced) introduction of SMP regulation on Incumbent s ducts All infrastructures: Directive 2014/61/ES Methodology to Attempt to increase calculate free space Duct prices available in the tube / duct 12 psl
13 2. Cable TV (altnets) first movers Alternative operators (~120 companies) Incumbent 13 psl
14 3. Asymmetrical regulation on Incumbent First movers were cable TV operators Incumbent started investments into optic fibre since Incumbent started to restrict access to its infrastructure. Dispute resolutions: between cable TV operators and incumbent operator (in 2002 first dispute on fees for the use of telecommunications equipment). RRT role: Market analysis: strengthened symmetric regulation and imposed obligations on SMP operator for duct access (access, non-discrimination, transparency, price control and cost accounting, and accounting separation). 14 psl
15 Duct access is the main access product used Duct access prices (since 2010): 27,80 EUR per km (monthly) 141,91 EUR per km (Technical investigation) 29 August 2014, Estonia 2013 EC recommendation on NGA-2 15
16 LT: infrastructure competition FTTx leading technology since ,3% 26,1% 14,3% 15,2% 3,1% 1,0% ,6% 26,1% 15,5% 15,2% 3,4% 1,2% ,2% 26,7% 17,4% 12,2% 4,1% 1,4% ,4% 26,0% 20,0% 10,8% 4,6% 2,1% ,0% 22,1% 24,2% 10,1% 5,6% 2,8% ,0% 20,5% 29,5% 6,5% 6,8% 3,5% ,5% 17,8% 36,9% 6,3% 9,1% 6,2% FTTx Mobile xdsl WiFi&WiMax CTV LAN 16
17 4. Increse of 4G networks Coverage of wireless BB 3G/HSPA coverage increased by 0.2% in G/Wimax coverage increased by 25% in G/LTE coverage increased by 17.2% in Today 4G/LTE coverage is about 80%! Source: European Commission annual report Broadband Coverage in Europe
18 4. UMTS network coverage Coverage - UMTS Signal: Weak Strong 18 psl
19 4. Rapid increse of 4G networks LTE 800 Mhz stations 1000; Coverage - UMTS LTE 1800 Mhz station 600; LTE 2600 Mhz stations Coverage (territory): 78 % 45 % 15 % 4 %
20 5. State aid (Rural connectivity) RAIN projects: eliminate digital divide between rural and urban areas Develop broadband Internet via connected backbone networks in rural areas where infrastructure is absent or insufficient RAIN ( ): km fibre backbone RAIN-2 ( ): km fibre backbone (connected) FIXED PRIP (2012- ): 360 km fibre access lines (400 points) RAIN-3 (2016?): ~600 new towers to share Wireless 20 psl
21 RAIN-1 (FIXED: fibre backhaul scattered) FIXED 21 psl
22 RAIN-2 (FIXED: fibre backhaul - connected) FIXED 22 psl
23 RAIN-3 (WIRELESS: new NGA coverage towers) Existing towers New towers Wireless 23 psl
24 RRT: BB promotion (supply side actions) RRT actions in the BB market Radio frequencies , Vilnius I. SYMMETRICAL measures 1) Joint development and Infrastructure sharing (since 1998) 2) Construction of competition-proof infrastructure (min. size of ducts, inlets, in-house cabling) 3) Increasing visibility: 1) Infrastructure maps online; 2) Broadband map. II. ASYMMETRICAL measures SMP analysis: Market 4 ( ): Full set of obligations (copper+fibre) Access to ducts Market 5 ( ): Full set of obligations (copper+fibre) 24
25 LT: Regulator s role in the nearest future RRT: Maintain infrastructure sharing system open Symmetric regulations, dispute resolution imposing specific obligations on SMP operators RRT: Go further - ease even more the conditions for operators to invest into fibre: online infrastructure MAP RRT as a mediator between municipalities and operators support the initiative of digitalisation of all underground infrastructure maps in LT (EU funding?) Empower end-user: measurement MAP of mobile BB RRT: effectively manage radio spectrum use 25 psl
26 Infrastructure map Project purpose: provide information for operators Information about existing electronic communication networks infrastructure in municipality Information about prospects of building electronic communication networks Why Google maps is not enough? Stages: 1. Vilnius 2. Klaipėda 3. Kaunas 4. Other municipalities RKK map 26 psl
27 27 psl
28 Thank You! Questions? Communications Regulatory Authority of the Republic of Lithuania RRT 28
29 UMTS 2014 HI
30 UMTS 2014 HII (+ 6 months)
Natalija Gelvanovska. Head of Access and Networks division. Communications Regulatory Authority of the Republic of Lithuania (RRT)
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