Private Investment in Urban FTTH Fibre to the Home Council EuropeWorkshop Session 2: Urban Transformational Digital Infrastructure 19th February 2013
CityFibre• The UK’s leading urban shared fibre infrastructure provider.• 30,000 km of fibre, 50 UK towns and cities.• Largest FTTH network in the UK. Shared Citywide Fibre• Gigler, delivering 1.0 Gbps consumer FTTH services. The UK’s Most Powerful Broadband Gigabit FTTH• Supported by the world’s leading investment banks; Macquarie Capital, UBS and Citigroup. D• Rolling out citywide fibre infrastructure for public services, mobile backhaul, businesses and Financial Horsepower: residents. DTo empower the UK society by delivering Engineering Strength:transformational fibre infrastructure that isa foundation of the digital economy D FTTH Council Europe – February 2013 Slide 2
Fibre: the natural choice for An economicpowering our digital economy perspective:The debate is when and how 76% Business stating that broadband is critical to their economic success 69% Broadband is restricting their businesses today 60% Concerned about future capacity and quality (Source: Atkins, survey of 10% of businesses in UK mid size city, November 2011Bandwidth demand and capabilitiesUS vs. Europe (Source: Solon Strategy) 3 FTTH Council Europe – February 2013 Slide 3 (Source: Solon Strategy)
Capturing all Layers of Demand in a CityWell Planned City brings new infrastructure opportunity to all 70% of Total Private Sector Distribution Consumers with 100Mbps+ Consumer sector: FTTH City Capex Sponsors symmetrical internet access Network SME with Gbps site to site SME sector: FTTP internet services and ☐ ? Private Sector Large enterprise sector: Large corporate P2P and Sponsors resilient ring connectivity Gigabit, low latency fibre for business Core City Metro Network Mobile sector: 3G, LTE, 4G backhaul, data centres Fibre to base stations and small cells 30% of Total City Capex Public sector devices: Public Sector CCTV, Traffic Control Sponsors systems, municipal WIFI CCTV, traffic control, municipal WiFi Public sector networks: schools, colleges, Core network, Public Sector anchor client, Council, schools, universities, public health libraries, healthcare FTTH Council Europe – February 2013 Slide 4
An Efficient, Shared, Reliable Fibre PlatformSupporting NGA and business connectivity markets Point to Point Fibre Network Fibre Distribution (Typically three cabinets per ring) CityFibre POP Cabinet Cabinet Feeder Network (P2P and PON) CityFibre Fibre Connectivity to POP Optical Fibre Distribution (Active Wholesale) Point to Point O CityFibre Splitters D F 3rd Party 3rd Party Splitters Optical (Where an operator opts for Passive Wholesale) Passive Shared Infrastructure • No electronics in the field – highly reliable and low cost operating cost • Point-to-Point and PON – supporting NGA and business connectivity services • Fibre LLU or VULA services – flexibility for service providers to differentiate FTTH Council Europe – February 2013 Slide 5
Choosing A Superior PlatformFTTH is a powerful asset for service providers Don’t slow it down !140 • Our experience proves that a better120 broadband experience leads to greater use. • Transition to internet delivered content100 such as YouView, Now TV, BBC iPlayer and a 80 Smart TV apps. 60 • Service providers can choose FTTH over FTTC for better customer satisfaction, 40 reduced churn and upsell opportunities. 20 0 BT Virgin CityFibre DSL 1 Cable 2 FTTH Gigler pricing is based on usage: AVERAGE MONTHLY DATA CONSUMPTION (Gb) 80GB Usage 250GB Usage Unlimited 1) DSL usage information reported by Ofcom 2) Cable usage information from Virgin reports £25/month £35/month £50/month FTTH Council Europe – February 2013 Slide 6
Meeting the Needs of all Key Stakeholders CityFibre’s model brings benefits to all constituents • Alternative superior infrastructure • Reduce dependency on BT Service • Scale solution Providers • Flexible pricing• Supportive investment environment• Attractive to all forms of capital over time • Future proofed infrastructure CityFibre’s Towns & Investors Model Cities • Attract businesses • Employment • Citizen services Policy • Leverage private investment Makers • Minimise public funding • Introduce infrastructure competition FTTH Council Europe – February 2013 Slide 7
Thank YouMark Collins Feasibility and email@example.com of a shared fibre access model in UK towns and cities Economic review of CityFibre’s model in comparison with a co-investment modelThe report is available at: February 19th 2013www.cityfibre.comwww.oxera.com Oxera i Draft for Comment: Strictly Confidential 8 FTTH Council Europe – February 2013 Slide 8
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