FTTH Groupe E, competitor view

Transcription

1 FTTH Groupe E, competitor view Presentation to ECC WG NaN PT TRIS 4th October 2010, Biel Claude Thürler, Groupe E

2 Agenda 1. Introduction: who is Groupe E 2. Why Groupe E is doing FTTH project 3. Model «Fribourg Optique» 4. Business Model 5. FTTH Pilot project a. Layer 1 b. Layer 2 c. Services 6. Business issues 7. Conclusion I Page 2 I

3 Groupe E regions and domains of activity Production Distribution Energy Sales & Services I Page 3 I

4 Utilities - large number of actors > 900 energy distributors in Switzerland I Page 4 I

5 Groupe E, why are we doing this project? Groupe E would like to be close to customer and provide new services: Energies Energy efficiency services Automatic meter management and meter reading Grid optimalisation Small and decentralized power plant integration Acheminement Télé-comptage Services Petite production décentralisée «Smartgrids» Optimalisation distribution Bidirectional communication is required Efficience énergétique I Page 5 I

6 Why : maximized synergies Smartgrids Télé-comptage Petite production décentralisée «Smartgrids» Optimalisation distribution Efficience énergétique Common commodities Electricity Gas Heating Telecoms Television I Page 6 I

7 Coopération Model with incumbent Model «Fribourg Optique»

8 Cooperation model BEP MDU BEP SFU Interconnexion Point Station HV Swisscom investments Groupe E investments Common investments between partners FO Groupe E/Open access FO Swisscom Central Office I Page 8 I

9 Market basic principles Both partners are able to provide openly Layer 1 services from central office or PoP (HV station) Competition Both partners are able to provide openly Layer 2/3 services on each network Competition Optical fiber prices are identical for all interested customers or partners No discrimination Cooperation governance principles are equal for partners No discrimination I Page 9 I

10 Economical basic principles Construction should always be realized at the best costs (economical construction depending of existing roll) All reserved fiber, up to the interconnection point, are owned by both partners and could be commercialized jointly Optical fiber prices (OTO to Manhole/Cabinet) are identical overall Canton of Fribourg (city and rural) Attractive price No discrimination Customer fairly Vertical installations (indoor) are financed on a common based (contracts et costs) and are included on the basic Layer 1 service Model respect expectation from Energy regulator (no cross-subventions) No discrimination Energy regulator I Page 10 I

11 Modèle de base : Fribourg Optique Fiber to Groupe E Groupe E / Open access offers OTO App. 1 OTO OTO OTO OTO App. 2 App. 3 App. 4 App. 5 Groupe E Network Legend : OTO : Optical Termination Outlet BEP : Building Entry Point POP : Point of Presence OTO BEP Services Manhole Cabinet POP Groupe E Common network (included first OTO) Swisscom network POP Swisscom Câble inter POP selon besoins Fiber to Swisscom Swisscom offers I Page 11 I

12 Business model

13 Possible roles are multiples Services producer Generate each services to be sold or Distributed Example: bundle of channels, VoD, Internet, VPN, network storage, Services provider Generate bundles Sales of services Send bill Services distributor Own the network (Optical fiber, cables, ) End customers Enterprise and residential Pub Providers Distributeur End customers Billing I Page 13 I

14 How to address the market Sunrise VTX MyGate Senselan Others Quoi? : Approches Wholesale&Retail Wholesale : indirect approach We provide the access only: No content Target : partners (Telco, ISP, ) Network Groupe E Customers Retail : direct approach We provide access AND contents Target : end customer Residential / Entreprise Groupe E Internet TV Téléphony Groupe E Network Groupe E Customers I Page 14 I

15 Actual business model with Groupe E Wholesales approach Services providers Offers Promotions Pub Billing Setup line 100M Recurring costs OSS-BSS / NOC (NetAdmin) Access network CHF CHF 50.-/month Installations bill OTO/cables Fibers/splice CHF Bill Installations Router/STB/services customers Installation Installation Fibres / CPE Router / STB Services CHF Billing Setup fee Recurring costs CHF CHF 90.-/mois End customers I Page 15 I

16 Pilot project to valid models

17 FTTH Pilot projet Neyruz Areas Offres : Torry FTTH Pilot Project Fribourg First analysis (tendencies) : + Investments costs respect + Processes and technology +/- Cooperation Model (data exchanges complexity) +/- Contents offers (exclusivity by incumbent only) - Building acquisition (contract and process to be modified) I Page 17 I

18 Services : attractive offers Télévision Internet Téléphonie PRIX MENSUELS 30 MBit/s down et 3 MBit/s up Choix offre appels sur le réseau fixe suisse CHF 69.- par mois 30 MBit/s down et 3 MBit/s up Choix offre appels forfaitaire sur le réseau fixe suisse CHF 74.- par mois 30 MBit/s down et 1MBit/s up Choix offre appels forfaitaire sur le réseau fixe européen CHF 89.- par mois MYGATE TV (10 HDTV / 160 chaines IP) 30 MBit/s down et 3 MBit/s up Choix offre appels forfaitaire sur le réseau fixe suisse CHF 99.- par mois Vario TV (8 HDTV / 100 chaines IP 30 MBit/s down et 1MBit/s up Choix offre appels forfaitaire sur le réseau fixe européen CHF par mois I Page 18 I

19 Two type of realization : rural and city Target is to valid most of technical et economical issues as well as the commercial acceptance. Torry Fribourg: 1800 flats Neyruz: 300 flats Netwok is fully operationnal and services are available I Page 19 I

20 Layer 1: civil works I Page 20 I

21 Layer 1: installation technics I Page 21 I

22 Layer 1: using existing infrastructures I Page 22 I

23 Layer 1: «BEP» installation 3m 1 BEP type for single house Photo 1 Photo 2 4m 1 BEP type for buildings Photo 7 Photo 8 I Page 23 I

24 Business issues

25 Market: actual situation Cablecom EBL GESA Network CATV Customer zone Groupe E Network Swisscom Wholesale Swisscom FTTH Sunrise VTX Swisscom Projet pilote Coaxial access Copper access VTX SenseLAN Network Groupe E Wholesale FTTH MYGATE Groupe E FTTH Optical access Groupe E Customers have choice between a few access networks Swisscom can offer copper access or fiber access Groupe E can offer fiber access only Groupe E cannot migrate existing customers I Page 25 I

26 Business risks Competition with Swisscom wholesale? How to provide nationwide services (market size)? Minimal required market shares? Market capacity and maturity? I Page 26 I

27 Openaxs is mandatory! Swiss utility association to promote and develop open access FTTH network => Groupe E is founding member I Page 27 I

28 Conclusions

29 Conclusions Biggest issue is not technical but commercial how to provide attractive contents and services to end customers Access network construction will always be local but services portfolio should be global or national (openaxs) and synchronized between utilities Large number of utilities in CH (almost 900 energy distributor) and complexity of solutions are reducing market power against incumbent! I Page 29 I

30 Thanks for your attention Claude Thürler, Responsable unité télécommunication et systèmes