ACCESS TO NGA NETWORKS: NEW WHOLESALE ACCESS PRODUCTS

Transcription

1 ACCESS TO NGA NETWORKS: NEW WHOLESALE ACCESS PRODUCTS Jorge Infante CMT - International Department EaP Meeting, June 2011 Trakai, Lithuania

2 INDEX 1.The context for NGAs regulation 2. EC Recommendation for NGAs 3. New wholesale access products for NGAs 4. Case study: Spain Market 4: Ducts Access, In-building wiring Market 5: Wholesale broadband Access 2

3 3 CONTEXT FOR NGAs REGULATION

4 THE CONTEXT FOR NGAs REGULATION 1. Migration to Next Generation Networks Substitution of copper by fiber Evolution to IP and separation of networks and services High bit-rate application (IPTV, HDTV, video streaming, etc.) 2. Interplatform competition Docsys 3.0 vs FTTX 3. Cost savings/investments A single platform for all services. Reduction of access points (less access switches) High barriers for passive infrastructure deployment 4. Different technological architectures with different implications POINT TO POINT VS. POINT TO MULTIPOINT FTTH, FTTC, FTTB, FTTN

5 5 THE EC RECOMMENDATION ON NGAs REGULATION

6 EC RECOMMENDATION ON ACCESS TO NGAs September 2010: European Commission Recommendation on regulated access to Next Generation Access Networks (NGA) One of the key tools devised by the EC to fulfill the objectives established in the EU Digital agenda. It sets a common framework for NGAs regulation along the EU. A lot of discussion in the previous versions. Criticism from NRAs: Too prescriptive. NRAs obliged to take outmost account. Departures to adapt to national context need to be justified. Encourage investment in NGAs Balance Safeguard efficient competition Ensure a level playing field in the EU single market

7 EC RECOMMENDATION ON ACCESS TO NGAs: PRINCIPLES (1) 1. Reference wholesale access offer for: Unbundled local loop Passive infrastructure (ducts, etc.) 2. Passive infrastructure: implementation of a database accessible to all operators Geographical location for each element Capacity Other relevant technical characteristics 3. SMP: new WBA products available 6 months before marketing retail products. 4. Application of the principle of equivalence Access provided under the same conditions to internal and to thirdparty access seekers

8 EC RECOMMENDATION ON ACCESS TO NGAs: PRINCIPLES (2) 5. Migration path to NGAs: Inform operators five years in advance Inform about future network deployment plans. 6. Price regulation for wholesale access Cost-orientation methodology Risk-premium incorporated in cost of capital. 7. Definition of sub-national markets/remedies Diversity in conditions of competition for NGAs NRAs allowed to define differentiated markets 8. Incentives for joint deployments When no SMP condition is met Conditioned to implement duct capacity enough for third parties (to be used at cost-oriented prices).

9 9 NEW WHOLESALE ACCESS PRODUCTS FOR NGAs

10 Increasing proportion of NGAs LADDER OF INVESTMENT. NEW WHOLESALE ACCESS PRODUCTS own infrastructure Cabinet unbundling MDF/ODF unbundling Bitstream (Ethernet incl. ALA, IP, ATM) - DSLAM - parent node - distant node Resale Access products Access to the end user using own infrastructure only Access to inhouse wiring or equivalent Concentration point unbundling + Leased Lines (incl. Ethernet) Wholesale products to reach access point Dark fibre Duct access Only own infrastructure ERG (09) 17 Report on NGA - Economic Analysis and Regulatory Principles the principle of the ladder of investment remains valid in an NGA environment, but is expected to be a more sophisticated ladder, with changes in the relative importance of their rungs and, in general, different dynamics, as a consequence of a shift in the economic bottlenecks 10

11 OVERVIEW NGAS REGULATION IN THE EU 11 ^: only mandated in some cases

12 12 CASE STUDY: SPAIN

13 CMT REGULATORY OBJECTIVES Making regulation technologically neutral homogeneous regulation for fibre and copper although challenges posed by the migration to NGA must be addressed Facilitating innovation and investment by all agents Fostering sustainable competition climbing up the ladder of investment towards infrastructure competition Proportionality of the obligations tailored to the specific competition problem Striking the right balance between: Foster competition Facilitate investments For the maximisation of benefits for the consumers

14 CMT APPROACH TO MARKET 4: WHOLESALE PHYSICAL NETWORK ACCESS Aims Improve the competitive situation in the retail markets of copper-based offers of NGA-based offers Facilitate the transition from the traditional to the NGA network LLU & SLU (facilitating FTTN unbundling) RO only for LLU Access to passive infrastructures (viable substitute for LLU operators in network upgrading process) Control of the migration process towards NGA Remedies LLU/SLU of copper (as in the 1st round) LLU/SLU of FTTH not included (not currently viable in a GPON scenario) General access to associated facilities (as in the 1st round) Duct Access (at cost oriented prices) Dark Fibre (when ducts not available) Information with 6 months in advance about the NGA deployment Guarantees in the case of exchanges dismantling 5-year transitional period before dismantling Begin when >25% of Incumbent s clients connected to alternatives to copper Additional measures with impact on market 4 Decision on symmetric measures imposing the sharing of in-house wiring (at reasonable prices)

15 THE IMPORTANCE OF DUCTS ACCESS Duct access is a facility hardly replicable Constituting between 60%-80% of the costs related to FTTH deployment Incumbent s network is based on ducts Chambers Ducts Poles Main regulatory obligations imposed on Telefónica Access (chambers, ducts, poles) Collocation Cost-oriented prices 15 Reference offer

16 CMT APPROACH TO MARKET 4: DUCT ACCESS Remedies Access Meet reasonable requests for access to infrastructure resources When technical barriers arise, Telefonica shall offer alternatives (including dark fiber rental). Cost oriented prices Transparency Regulated Reference offer Provision of information on the technical and physical characteristics of the infrastructures associated to exchanges, including space availability (6 months after measures are in force) Non discrimination Quality parameters quarterly provided to CMT (for both wholesale and equivalent selfprovided activities). Agreements reached between interested parties shall be communicated to CMT. Incumbent s reference offer: On-line information system with cartographic maps of ducts, manholes, handholes and poles Procedures and information systems to request information about space availability as well as request effective occupation Technical specifications (rules on space usage and maintenance, space availability criteria, ) Economic specifications (prices, ), SLAs, KPIs

17 DUCT ACCESS REFERENCE OFFER: EXPERIENCE SO FAR Two years of duct access in Spain First experiences in 2008 Final version in place from April 2010 Main features Access to urban Incumbent s passive infrastructure Can be used to deploy fibre/coaxial but not copper Online application with cartographic information SLAs and KPIs Usage so far 1782 km of ducts used in the last 2 years and more than chambers 17 mainly requested for fibre deployments (Vodafone, Orange, Colt)

18 SYMMETRIC MEASURES IMPOSING THE SHARING OF IN-HOUSE WIRING 12th Feb 2009: decision adopted Legal basis: Article 13.2 LGTel (obligations on non SMP operators) Scope buildings with no ITC (only of residential and mixed use) New and already initiated deployments Obligations Access to the fibre network elements located inside of close to the building The first operator to install the optical equipment/wiring inside the building shall meet all reasonable access requests Regardless the solution implemented, the first mover must ensure that the sharing is feasible and possible at a proportionate cost and within a reasonable period Reasonable prices Obligation to negotiate reciprocal agreements Centralised management of the network elements by the first mover Transparency Provide information about the buildings where the optical wiring has been deployed

19 SCOPE FOR THE SYMMETRIC OBLIGATION (I) Symmetrical obligations complement the remedies imposed to Telefonica in the framework of market 4. Exchange Buildings Collocation Sala de equipos Reference offer for duct access Equipment collocation Tie cable Ducts, manholes, handhole Symmetrical obligations inside buildings

20 SYMMETRICAL OBLIGATIONS: WHY? Starting point is equivalent to all operators that intend to deploy FO inside buildings. Operators face problems related to usage of (scarce) space in buildings and obtaining authorizations from the building owners. Mechanisms must be established to simplify the operative of several operators interested in deploying fiber in buildings. 20

21 SCOPE FOR THE SYMMETRIC OBLIGATION (II) Obligations are addressed to operators that deploy fiber optics inside buildings. Not included operators whose deployment is based in other technologies (e.g. HFC). Remedies apply to buildings where no ICT is enabled. ICT: rules for the deployment of telecom infrastructures inside buildings (areas for equipment, ducts for copper, coax and fiber). Business buildings are out of scope. 21

22 CMT APPROACH TO MARKET 5: WHOLESALE BROADBAND ACCESS Aims Make regulation technologically neutral Adapt regulation to the new needs Strike the right balance between fostering competition and facilitating investments and innovation (emphasis on investments by alternatives on own infrastructure) Remedies Wholesale broadband access available irrespective of: Copper-based offers NGA-based offers Enhanced bitstream product: covering VDSL and fibre valid for VoIP services Wholesale broadband access available up to 30 Mbps (it is considered that for premium offers above 30 Mbps alternatives can make use of the instruments available in market 4)

23 MARKET 5: NEW ETHERNET BITSTREAM SERVICE (NEBA) Adopted in November 2010 Stemming from analysis of market 5 Pure Ethernet model both for residential and business costumers Ensures VoIP reliability Allows replication of NGA services in bitstream but also differentiation from Telefónica It emulates the behaviour of an own network Tariffs according to the speed delivered at the Interconnection Access Point (instead of speed of every user) 23 Available in pre-commercial terms in January 2012

24 NEBA: HIGHLY FLEXIBLE PRODUCT NEBA conceived with a high list of commercial profiles......and more can be defined categories predefined profiles 24 Perfiles Commercial BE ORO RT comerciales profiles down up down up down up Perfil Validation validación profile v1-1m 1M - 25M/3M v M 2M M/3M v3 10M 1M M/3M v4 10M 1M k 256k 25M/3M v5 10M 1M 10M 1M 512k 512k 25M/3M v M 1M M/3M v M 1M 256k 256k 25M/3M v M 1M 512k 512k 25M/3M v9 25M 1M k 256k 30M/3M v10 25M 1M 4M 1M 512k 512k 30M/3M v11 25M 1M 4M 1M 1M 1M 30M/3M v M 1M 256k 256k 30M/3M v M 1M 512k 512k 30M/3M v M 1M 1M 1M 30M/3M v M 1M 2M 2M 30M/3M v16 30M 1M M/3M v M 1M 128k 128k 25M/3M v17 30M 3M M/3M v M 3M 128k 128k 25M/3M v M 1M M/3M v M 1M 128k 128k 25M/3M v M 3M M/3M v M 3M 128k 128k 25M/3M

25 OVERVIEW OF BITSTREAM PRODUCTS AVAILABLE Internet Other operator IP ADSL-IP national NEBA ADSL-IP regional IP Internet GigADSL Ethernet ATM ATM aggregation Ethernet aggregation 25 DSLAM ATM xdsl: DSLAM IP GPON: OLT

26 OVERVIEW OF BITSTREAM PRODUCTS AVAILABLE Service Level Points of Interconnection (PoI) Protocol GigADSL Regional 109 PoI ATM ADSL-IP National 1 IP Regional 50 IP NEBA Regional 50 Ethernet Once NEBA will be available, Telefónica will not be mandated to provide access to GigaADSL nor ADSL-IP (when overlapping of PoIs) 26

27 CMT approach Overview of instruments available to altnets CMT APPROACH: OVERVIEW OF INSTRUMENTS AVAILABLE TO ALNETS Aim of CMT approach: Ensure that all the necessary rungs of the ladder of investment are available to alternatives for all technologies (where viable) Exchange Optical access Copper access Cable network CABLE FTTH FTTB FTTN COPPER Bitstream LLU Sub-loop unbundling Access to passive infrastr. Own infrastr. Dark fibre Up to 30 Mbps Access to inhouse wiring Up to 30 Mbps Dark fibre Dark Up to 30 Mbps fibre Up to 30 Mbps Dark fibre Market 5 Market 4

28 Thank you