EU initiative to reduce the cost of deploying high-speed internet across Europe

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1 EU initiative to reduce the cost of deploying high-speed internet across Europe Wolf-Dietrich Grussmann DG CONNECT Unit B.1 (Regulatory Coordination & Business) FTTH Conference, London, 19 February 2013

2 A bundle of EU initiatives to ensure investments in fast and ultra-fast Internet access Increase regulatory certainty and consistency across Europe Stimulate demand for high bandwidths Provide for sufficient spectrum Facilitate financing Lower deployment costs

3 Broadband deployment costs High Speed Broadband Deployment Costs (e.g. UK, based on Analysys Mason, 2008) The largest single cost component is civil engineering - up to 80%. Up to 30% cost reduction could be achieved by the re-use of existing ducts, including those of alternative infrastructure owned by other utilities (e.g. water, energy, railways) Measures can be taken to make investment more efficient, less costly, all in a competition-enhancing way (Analysys Mason, 2008; Francisco Caio, 2008; WIK, 2008, etc.)

4 Cost saving potential Using existing passive infrastructure opposed to new construction 30-60% Co-deployment opposed to self-deployment 15-30% Equipping new buildings NGA-ready opposed to retro-fitting existing buildings 20-60% Source: Analysys Mason (2012)

5 Cost reduction measures are envisaged by several initiatives The Digital Agenda for Europe called on Member States to take measures to facilitate broadband investment, among others through making sure that civil engineering works systematically involve potential investors, clearing rights of way, mapping available passive infrastructure suitable for cabling and through upgrading in-building equipment The Broadband Communication (COM(2010)472) indicated a number of regulatory measures that could be adopted at national and local level to promote investment and reduce investment costs, such as reducing the civil engineering costs through a proper coordination by national and local authorities, using town planning rules and remedies mandating access to passive infrastructures. The ecommerce Action Plan (COM(2011)942) called on Member States to place investments in high speed internet at the core of their growth strategies, [ ] among others by adapting town planning law to limit deployment costs.

6 but the pressure to act is mounting Conclusions of the European Council (1-2 March 2012): 15. In particular, efforts will continue in order to [ ] complete the Digital Single Market by 2015, in particular by adopting measures to boost confidence in on-line trade and by providing better broadband coverage, including by reducing the cost of high-speed broadband infrastructure (under the EU Action heading) Single Market Act II (3 October 2012, COM(2012) 573): Key action 9: Reduce the cost and increase efficiency in the deployment of high speed communication infrastructure Legislative proposal to be presented in Q1/2013 and adopted by Spring 2014

7 Public consultation on an EU initiative Consultation published on the DG INFSO website and on Your Voice in Europe on 27 April 2012 Deadline for submitting a contribution was 20 July Contributions from a wide variety of stakeholders received (beyond telecom and including also utility companies, manufactures, local authorities etc.)

8 Main results of the Public Consultation Nearly all the respondents identified significant benefits for NGA rollout from a more intensive and coherent EU infrastructure sharing regime, including utility companies. Due to technical and organisational challenges, benefits of co-deployment and coordination of civil works vary from case to case. Responses suggest a general consensus as to the need to equip new buildings NGA-ready. Industry responses clearly pointed to the need to simplify/streamline/reduce the costs of the permit granting process. Mapping was generally acknowledged as an enabler for access to existing passive infrastructure, though overall benefit depends on costs.

9 Mapping examples & costs

10 Objectives of an EU Initiative Making a better use of existing infrastructure, including across utilities Enhancing transparency and coordination of civil engineering works Handling requests to rollout networks in a more efficient and transparent way Ensuring ready for NGA access buildings

11 1. Making a better use of existing infrastructure Increasing access to existing passive infrastructure of telecom operators Providing access to infrastructures of utility companies in other sectors Raising transparency on existing passive infrastructures via a single information point

12 2. Enhancing transparency and coordination of civil engineering works Enabling operators to benefit from clear announcements of the planned civil engineering works Systematically offering possibilities to lay new ducts or other infrastructure when public works are undertaken

13 3. Handling requests to rollout networks in a more efficient and transparent way Ensuring transparency and coordination of permit granting procedures Creating a single contact point concerning applications for permits Ensuring timely decisions

14 Timescale for permit granting Figure 5: Comparison between legal commitments and typical timescales for issuing base station planning permissions across Europe (Source: GSM Association)

15 4. Ensuring high-speed internet access to buildings Equipping new buildings ready for high-speed internet access Ensuring access to concentration point in new multi-dewellings Ensuring access to in-building physical infrastructure

16 Thank you for your attention!

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