FTTH Conference 2009 FTTH Greece


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FTTH Conference 2009 FTTH Greece

  1. 1. The National Strategy for Telecommunications «Infrastructure Development» New Generation Access Networks
  2. 2. Project Objective We want Greece to be at the forefront of the new digital era…
  3. 3. Project Objective Development of an open-access passive network that will provide optical fiber to approx. 2,000,000 homes and businesses, in Athens, Thessaloniki and at least 50 other cities across Greece.
  5. 5. Where we are at… Key financial facts (2007) •GDP €230bn ($285bn) •GDP(per capita) €20,500 ($26,500) •Growth rate 4% •Inflation 2.9% •Unemployment 8.3%
  6. 6. Is the time now for optical fiber Networks in Greece…? Yes because… 1. Increased broadband penetration rates have been achieved only in the last 4 years. 2. Very rapid rates of increase in broadband penetration during the last 2 years. 3. Greece has geostrategic significance. 4. There is no other significant competitive telecom network infrastructure. 5. The population density justifies the investment (in the selected cities) 6. There is a strong approval from the citizens 7. There is a definite government dedication.
  7. 7. Population distribution…
  8. 8. Population distribution… POPULATION DISTRIBUTION (11.000.000 last census) ATTIKI PREFECTURE 36% REST OF GREECE 54% THESSALONIKI PREFECTURE 10% In the Greater Athens area alone, there is a total of 1.2mln households, with an average density 5900inh/sqkm
  9. 9. Broadband market in Greece…
  10. 10. Survey Data(*) About 90% of the participants answered that they believe this project is important (as analytically presented during the survey) Over 80% of the sample thinks that state participation is necessary in planning and implementing this project Eight out of ten persons asked would like to see the project starting immediately About nine out of ten people would tolerate some level of disturbance in their neighborhood. Whereas nine out of ten would tolerate some disturbance in their own building. (*) Pulse RC (www.pulserc.gr) survey for the Ministry of Transport & Communications, conducted by telephone between 27/8/2008 and 29/8 /2008 with a sample of 2,120 persons in Attiki, Thessaloniki prefectures and in the municipalities of Patra, Heraklion and Larissa, using the method of random sampling on people over the age of 18. (mean statistical deviation +/-5%)
  11. 11. The Project
  12. 12. Project Requisites “Open Access” network model – Point to Point Architecture. Optical fiber to cover the increasing needs for bandwidth of at least 100Mbps per user. Infrastructure Provider Model for the construction maintenance and supply of the passive infrastructure (dark fiber) to telecom providers. The same Passive Infrastructure provider may not offer telecom or ISP services. Total rollout duration for the network: 7 years.
  13. 13. Project Funding Indicative project budget: 2,100,000,000 €. There is a decision for project co-funding by the state and private investment. The direct state involvement will be via implementation of the law for Public Private Partnerships (SDIT) in such a way that competition terms are fully observed. Up to 3 Special Purpose Companies will be established. The duration of the partnership will be 30 years. The state will pay availability dividends that will correspond to a percentage of the total investment budget, while the proportion of public-private participation will be fixed following delegation with the EC.
  14. 14. Project Funding Revenues via the availability and use fees of the passive infrastructure by the telecom and content providers. Potential for financing on competitive terms, via the European Investment Bank. Possibility for state aid of the end users covering costs for vertical wiring via the EU’s National Strategic Reference Framework .
  15. 15. Financing distribution… YEAR  2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 %Homes Passed 0 3 15 30 50 67 83 95 100 100 Homes Passed 0 56,100 280,500 561,000 935,000 1,252,900 1,552,100 1,776,500 1,870,000 1,870,000 Homes Connected (0.35 H.P.) 0 19,635 98,175 196,350 327,250 438,515 543,235 621,775 654,500 654,500 State contribution cumulative (NPV) 0 20 105 210 350 470 580 665 700 700 (mln euros) State contribution per year (NPV) 0 20 85 105 140 120 110 85 35 0 (mln euros) Private contribution cumulative (NPV) 0 40 210 420 700 940 1160 1330 1400 1400 (mln euros) Private contribution per year (NPV) 0 40 170 210 280 240 220 170 70 0 (mln euros) Total investment cumulative (NPV) 0 60 315 630 1050 1410 1740 1995 2100 2100 (mln euros) Total investment per year (NPV) 0 60 255 315 420 360 330 255 105 0 (mln euros)
  16. 16. Financing distribution…
  17. 17. Key facts… Key Requirements‐Assumptions Passive Infrastructure (dark fiber) only Open Access principle. Passive infrastructure provider may not  provide services to the end user FTTH Point‐to‐Point architecture Rollout (homes‐passed) milestones PPP with approx. 1/3 of investment covered by the state.  Duration of partnership will be 30 years
  18. 18. Minimizing Risk of Investment…
  19. 19. Integrated State Support… Legislation for Rights‐Of‐Ways Access to Other Public Networks Access to Buildings Technical Specifications and Standards for Indoor Fiber  Network Installations Road‐shows for promoting Broadband Possibility for Direct End‐User Subsidies through EU’s NSRF E‐gov related initiatives …aiming at minimizing risk of investment, assuring swift profitability while creating at the same time a safe environment of equal terms for all market players.
  20. 20. Regulatory Framework The Regulatory Framework will include legislative and regulation aspects to facilitate implementation of the optical fiber network. Indicatively : Rights-of-Way for new and existing infrastructure Development Requirements for new infrastructure Rights-of-Way for public use networks Development of aerial-wiring networks Rights-of-Way fees Access regulations to private buildings public places etc.
  21. 21. Technical Requirements A common ministerial decision which will cover Technical Specifications for indoor networks of electronic communication networks is being prepared. Establishing technical specifications includes a full installation guide for indoor optical fiber networks and assures the non-restriction of fiber network installations in new and existing buildings. In addition it describes all technical specifications regarding issues of: access to sites expansion potential installation and maintenance operational efficiency etc.
  22. 22. Milestones First Semester 2009: Preparation and Submission of the Project Proposal to the EC (Competition Committee) Project approval by the inter-ministerial committee for PPPs. PPP consultant selection – Preparation of tender dossiers, public consultation. Second Semester 2009: International public tender for the project.