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Greece Broadband Plan

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road map and policy framework on broadband plan in Greece.

road map and policy framework on broadband plan in Greece.

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  • 1. Greece - Broadband Action Plan to 2008 Greece - Broadband Action Plan to 2008 Enhancing broadband by spurring competition… Enhancing broadband by spurring competition… … or “A journey of a thousand-miles begins with a single step“ … or “A journey of a thousand-miles begins with a single step“ Dr Yannis Larios Dr Yannis Larios Advisor to the Special Secretary for Digital Planning Advisor to the Special Secretary for Digital Planning
  • 2. Where (and when!) it all started… started… … or “the first step“ … or “the first step“
  • 3. Where (and when) the “broadband journey” started… “broadband journey” started… In 2004, Greece was lagging behind in Broadband – We needed a “Digital Leap” In 2004, Greece was lagging behind in Broadband – We needed a “Digital Leap” ! ! We wanted to move from these facts... We wanted to move from these facts... In 2004, broadband penetration in Greece 2004 In 2004, broadband penetration in Greece was at 0,1%-0,2% of population, admittedly was at 0,1%-0,2% of population, admittedly lagging behind the EU-25 average lagging behind the EU-25 average Source: 10th Report on the Implementation of the Telecommunications Regulatory Package - 2004 ! ! To this new reality… To this new reality… 2006 “…with CAGR (Compound Annual Growth “…with CAGR (Compound Annual Growth Rate) of 215%, Greece comes first as the Rate) of 215%, Greece comes first as the country with the highest broadband country with the highest broadband annual growth rate in 2006 globally” annual growth rate in 2006 globally” (Point Topic, World Broadband Statistics, March 2007) (Point Topic, World Broadband Statistics, March 2007) Source: Point Topic, World Broadband Statistics -- 3 -- 3
  • 4. The first steps of the journey… journey… Years 2005-06: the “magic touch” of competition & the “Digital Strategy” bring Broadband Growth Years 2005-06: the “magic touch” of competition & the “Digital Strategy” bring Broadband Growth BB Lines % Penetration 800.000 7,00% 6,50% 700.000 6,00% % of broadband penetration broadband connections 600.000 5,00% 4,39% 500.000 4,00% 400.000 2,67% 3,00% 300.000 2,00% 200.000 1,50% 0,85% 1,00% 100.000 0,47% 0,02% 0,02% 0,09% 0,23% 0,00% 0 0,00% Jul-02 Jan-03 Jul-03 Jan-04 Jul-04 Jan-05 Jul-05 Jan-06 Jul-06 Jan-07 May 07 (est.) quot; EC Telecoms Directives transposed quot; Bundles bring 2Mbps access to less than €25/mo. (-80% since 2004) quot; The Digital Strategy 2006-2013 is announced by the Government quot; The “Broadband Action Plan to 2008” is fully unveiled quot; The incumbent doubles speeds for the same price, starting Autumn 2006
  • 5. Speaking of “competition’s magic touch”… “competition’s touch”… Prices have been slashed by almost 80% in 2 years… Prices have been slashed by almost 80% in 2 years… Average broadband connection cost (January 2004- January 2007) Average broadband connection cost (January 2004- January 2007) 250 225 216,8 200 188,2 175 165,0 163,94 € / mo. 150 Basic 125 117,93 Middle 106,81 High 96,34 106,6 100 92,1 74,90 75 63,95 60,9 55,40 53,2 41,2 40,1 50 29,8 43,2 27,9 25 23,4 21,7 0 Jan 04 July 04 Jan 05 July 05 Jan 06 July 06 Jan 07 -- 5 -- 5
  • 6. Where the market would bring us… us… Forecast: Penetration at 8% by the end of 2008 Forecast: Penetration at 8% by the end of 2008 9,00% 2 8,00% R = 0,9999 7,00% 6,00% 5,00% 4,00% 3,00% Estimated Growth 2,00% driven by market 1,00% 0,00% Jul 02 Jan 03 Jul 03 Jan 04 Jul 04 Jan 05 Jul 05 Jan 06 Jul 06 Jan 07 Jul 07 Jan 08 -- 6 -- 6
  • 7. So… the market would bring us to ~8% of penetration in 2008… So… 2008… but then, we wanted even “more” for Broadband!… “more” for Broadband!… …and that’s where the Broadband Action Plan came ! …and that’s where the Broadband Action Plan came ! -- 7 -- 7
  • 8. More for broadband: The Broadband Action Plan Additional steps at this “journey”… Additional steps at this “journey”… 9,00% 2 8,00% R = 0,9999 Digital Strategy 2006-2013: 7,00% The “Broadband Action Plan” has set the target of 6,00% “Broadband Convergence” to the EU avg. by 2009 5,00% 4,00% 3,00% Estimated Growth 2,00% driven by market 1,00% 0,00% Jul 02 Jan 03 Jul 03 Jan 04 Jul 04 Jan 05 Jul 05 Jan 06 Jul 06 Jan 07 Jul 07 Jan 08 -- 8 -- 8
  • 9. The Broadband Action Plan Enhancing Broadband by leveraging Structural Funds… Funds… … or “paving the way for the next broadband steps!“ … or “paving the way for the next broadband steps!“
  • 10. The Broadband Action Plan … … Enhancing Broadband by leveraging Structural Funds (€450 mil) Enhancing Broadband by leveraging Structural Funds (€450 mil) Fields of Interventions The Target intervention • Metropolitan Area Networks in 75 Municipalities (€63 mil) • Wireless broadband networks in 120 Municipalities and 20 TEDK(€42 mil) Development of • 770 wireless hotspots at almost 400 enterprises (€21 mil) Broadband • Broadband utilization of the HellasSAT satellite (€10 mil.) Infrastructure • “Broadband large project” at the regions of Greece (€210 mil) Broadband • New law on Investments Penetration Target: • Incentives for the development of broadband services by private firms (€36 mil.) Development of • “Smart regions” with the use of broadband (€10 mil.) from 0,1% (2004) to Broadband • Broadband services and Digital TV for disabled persons (€50 mil.) Services • “Digital Local Authority” (€60 mil.) Broadband • New law on Investments convergence (2009) Demand • Broadband demonstration projects in 85 spots throughout the country (€11,5 mil.) stimulation for • Broadband Demand stimulation across Greece (€50 mil.) Broadband • “Communication campaign” for increasing broadband awareness (€4,4 mil.) Services -- 10 -- 10
  • 11. A major intervention of the Broadband Action Plan… Plan… “Broadband Access Development in under-served Territories” “Broadband Access Development in under-served Territories” a project levering Structural Funds and Private Investments (€210 mil.) a project levering Structural Funds and Private Investments (€210 mil.) to both promote local access and broadband infrastructure to both promote local access and broadband infrastructure plus stimulate demand across the country plus stimulate demand across the country in places where citizens & businesses have difficulties gaining access in places where citizens & businesses have difficulties gaining access -- 11 -- 11
  • 12. Broadband Access Development in under-served Territories under-served We set ambitious but realistic tangible objectives We set ambitious but realistic tangible objectives ! To increase broadband population coverage to 90% by 2008 ! To increase broadband population coverage to 90% by 2008 (compared to less than 40% in 2004) (compared to less than 40% in 2004) ! To increase broadband geographical coverage to 60% ! To increase broadband geographical coverage to 60% (compared to less than 10% in 2004). (compared to less than 10% in 2004). ! To increase competition in the broadband market and achieve ! To increase competition in the broadband market and achieve competitive retail prices, converging to the EU average competitive retail prices, converging to the EU average ! To increase demand for broadband services, by also allocating part of ! To increase demand for broadband services, by also allocating part of the budget to demand-stimulation actions the budget to demand-stimulation actions
  • 13. Broadband Access Development in under-served Territories under-served Objectives were ambitious, but then we made some ….. Objectives were ambitious, but then we made some ….. Strategic Choices: : ! We wanted to engage the market and enhance competition ! We wanted to engage the market and enhance competition ! We opted for technology-neutrality ! We opted for technology-neutrality ! We wanted to utilise Structural Funds in the most efficient way ! We wanted to utilise Structural Funds in the most efficient way ! We adhered to eEurope 2005 and i2010 principles for Broadband and ! We adhered to eEurope 2005 and i2010 principles for Broadband and regional development regional development ! We opted for transparency and speed of implementation ! We opted for transparency and speed of implementation
  • 14. Broadband Access Development in under-served Territories under-served Strategic Choice 1: Engage the Market – Enhance Competition Strategic Choice 1: Engage the Market – Enhance Competition ! ! We divided Greece into 7 regions of We divided Greece into 7 regions of equal broadband potential ( ~65% of equal broadband potential ( ~65% of Greece & ~6 mil residents, or ~60% Greece & ~6 mil residents, or ~60% of the Greek population). of the Greek population). ! ! Each region has been tendered Each region has been tendered separately separately ! ! Bidders were allowed to participate in Bidders were allowed to participate in no more than 3 regions, thus ensuring no more than 3 regions, thus ensuring that at least 3 different telcos would that at least 3 different telcos would assume regional broadband assume regional broadband development development ! ! The project focuses only on “white” The project focuses only on “white” (no broadband at all) and “grey” zones (no broadband at all) and “grey” zones (insufficient competition/no access to (insufficient competition/no access to infrastructure) across Greece, infrastructure) across Greece, excluding Athens and Thessaloniki excluding Athens and Thessaloniki -- 14 -- 14
  • 15. Broadband Access Development in under-served Territories under-served Strategic Choice 2: Technology-neutrality Strategic Choice 2: Technology-neutrality ! No technology-specific requirements were set at the tendering process ! No technology-specific requirements were set at the tendering process ! Bidders participated on the basis of qualitative & citizen-related service ! Bidders participated on the basis of qualitative & citizen-related service objectives, such as objectives, such as # Minimum broadband speeds were set per user category (households, SMEs etc.) # Minimum broadband speeds were set per user category (households, SMEs etc.) # Maximum retail prices were set per user category # Maximum retail prices were set per user category # Minimum population and geographical coverage objectives had to be met per # Minimum population and geographical coverage objectives had to be met per region region # We tested our constraints beforehand, by building broadband business-cases per # We tested our constraints beforehand, by building broadband business-cases per region, including all local economic and demographic dynamics. region, including all local economic and demographic dynamics. -- 15 -- 15
  • 16. Broadband Access Development in under-served Territories under-served Strategic Choice 3: Efficient use of Structural Funds to leverage investments Strategic Choice 3: Efficient use of Structural Funds to leverage investments Total Project Budget: €210 mil. Total Project Budget: €210 mil. 50% 50% European Regional European Regional Private Investment: €105 mil. Private Investment: €105 mil. Development Fund: €105 mil. Development Fund: €105 mil. -- 16 -- 16
  • 17. Broadband Access Development in under-served Territories under-served Strategic Choice 3: Efficient use of Structural Funds to leverage investments Strategic Choice 3: Efficient use of Structural Funds to leverage investments Total Project Budget: €210 mil. Total Project Budget: €210 mil. 76% 24% Demand Stimulation: €50 mil. Demand Stimulation: €50 mil. Development of broadband Development of broadband infrastructure and promotion infrastructure and promotion of local access: €160 mil. of local access: €160 mil. -- 17 -- 17
  • 18. Broadband Access Development in under-served Territories under-served Strategic Choice 4: adhere to eEurope and i2010 principles for regional development Strategic Choice 4: adhere to eEurope and i2010 principles for regional development ! It was designed on a per-region basis, taking into account local ! It was designed on a per-region basis, taking into account local parameters parameters ! It provides impetus to regional development, by directly addressing ! It provides impetus to regional development, by directly addressing the specific needs of the regions the specific needs of the regions ! It puts broadband into the equation of regional development. ! It puts broadband into the equation of regional development. Broadband investments would come at a delay otherwise. Broadband investments would come at a delay otherwise. -- 18 -- 18
  • 19. Broadband Access Development in under-served Territories under-served Strategic Choice 5: Transparency and Speed of Implementation Strategic Choice 5: Transparency and Speed of Implementation ! Project parameters have been designed in transparent way through a ! Project parameters have been designed in transparent way through a regional demand-supply broadband model regional demand-supply broadband model ! Extensive 6-month consultation process with the market ! Extensive 6-month consultation process with the market ! Winning bids easily determined by an equation known to all ! Winning bids easily determined by an equation known to all participants, that included all key-project parameters participants, that included all key-project parameters ! Record-times for contract awards: ! Record-times for contract awards: quot; Project tendered on September 2006 quot; Project tendered on September 2006 quot; Contract awards on February 2007 quot; Contract awards on February 2007 -- 19 -- 19
  • 20. Broadband Access Development in under-served Territories under-served Strategic Choice 5: Transparency and Speed of Implementation Strategic Choice 5: Transparency and Speed of Implementation quot;The contracts for all Regions have been signed: quot;The contracts for all Regions have been signed: quot; Region 1 Operator: Hellas on Line quot; Region 2 Operator: Hellas on Line quot; Region 3 Operator: Tellas quot; Region 4 Operator: Hellas on Line quot; Region 5 Operator: CYTA Hellas quot; Region 6 Operator: Forthnet quot; Region 7 Operator: Forthnet
  • 21. Broadband Access Development in under-served Territories under-served These innovative aspects, brought the endorsement of the European Commission These innovative aspects, brought the endorsement of the European Commission Competition Commissioner Neelie Kroes commented on the project: “I am pleased to endorse public funding for the deployment of broadband networks in under-served regions of Greece. The project has a total budget of €210 mil. and is to date the most significant broadband project undertaken by a Member State.” EC Press Release – 07.07.2006 -- 21 -- 21
  • 22. Broadband Access Development in under-served Territories under-served SIX Innovation points make the difference…. SIX Innovation points make the difference…. ! it leverages €210 mil. of Structural Funds and private expenditure ! it leverages €210 mil. of Structural Funds and private expenditure efficiently to promote broadband growth efficiently to promote broadband growth ! it includes a significant demand-side element, by complementing ! it includes a significant demand-side element, by complementing infrastructure development with broadband-use stimulation infrastructure development with broadband-use stimulation ! it is technology-neutral. Bidders participated on the basis of qualitative & ! it is technology-neutral. Bidders participated on the basis of qualitative & citizen-related service objectives (retail prices, population coverage, etc.) citizen-related service objectives (retail prices, population coverage, etc.) ! it has a strong regional dimension and the widest coverage! ! it has a strong regional dimension and the widest coverage! (~ 60% of Greek population, 50%+ of households!) (~ 60% of Greek population, 50%+ of households!) ! it has been designed in transparent way, with the participation of the ! it has been designed in transparent way, with the participation of the market market ! it secures competition. ! it secures competition.
  • 23. The Broadband Action Plan Other complementing steps… steps…
  • 24. The Broadband Action Plan … … Fields of Interventions The Target intervention • Metropolitan Area Networks in 75 Municipalities (€63 mil) • Wireless broadband networks in 120 Municipalities and 20 TEDK(€42 mil) Development of • 770 wireless hotspots at almost 400 enterprises (€21 mil) Broadband • Broadband utilization of the HellasSAT satellite (€10 mil.) Infrastructure • “Broadband large project” at the regions of Greece (€210 mil) Broadband • New law on Investments Penetration Target: • Incentives for the development of broadband services by private firms (€36 mil.) Development of • “Smart regions” with the use of broadband (€10 mil.) from 0,1% (2004) to Broadband • Broadband services and Digital TV for disabled persons (€50 mil.) Services • “Digital Local Authority” (€60 mil.) Broadband • New law on Investments convergence (2009) Demand • Broadband demonstration projects in 85 spots throughout the country (€11,5 mil.) stimulation for • Broadband Demand stimulation across Greece (€50 mil.) Broadband • “Communication campaign” for increasing broadband awareness (€4,4 mil.) Services -- 24 -- 24
  • 25. Broadband Action Plan Other complementary broadband projects (partly financed by ERDF+ESF)… Other complementary broadband projects (partly financed by ERDF+ESF)… ! Development of Metropolitan Area Networks in 75 cities across Greece, on ! Development of Metropolitan Area Networks in 75 cities across Greece, on the basis of eEurope access guidelines (€65 mil.) the basis of eEurope access guidelines (€65 mil.) ! Wireless broadband networks in 120 Municipalities and 20 TEDK (€42 mil) ! Wireless broadband networks in 120 Municipalities and 20 TEDK (€42 mil) ! 770 wireless hotspots at almost 400 enterprises (€21 mil) ! 770 wireless hotspots at almost 400 enterprises (€21 mil) ! Broadband utilization of the HellasSAT satellite (€10 mil.) ! Broadband utilization of the HellasSAT satellite (€10 mil.) ! “Smart communities” with the use of broadband (€10 mil.) ! “Smart communities” with the use of broadband (€10 mil.) ! Broadband services and Digital TV for disabled persons (€50 mil.) ! Broadband services and Digital TV for disabled persons (€50 mil.) ! “Digital Local Authority” (€60 mil.) ! “Digital Local Authority” (€60 mil.) ! Broadband demonstration projects in 85 spots throughout Greece (€11,5 ! Broadband demonstration projects in 85 spots throughout Greece (€11,5 mil.) mil.) -- 25 -- 25
  • 26. Broadband Action Plan… Plan… A “local recipe” that might be of interest to other Member-States A “local recipe” that might be of interest to other Member-States Structural Funds put into good use Structural Funds put into good use + + an approach with the market, facilitating competition in the market an approach with the market, facilitating competition in the market + + thorough planning but with a regional focus thorough planning but with a regional focus + + a government deciding not to put its tail into technology-decisions a government deciding not to put its tail into technology-decisions = = a “Digital Leap” in Broadband a “Digital Leap” in Broadband -- 26 -- 26
  • 27. Greece - Broadband Action Plan to 2008 Greece - Broadband Action Plan to 2008 Thank you… Dr Yannis Larios ylarios@infosoc.gr http://ylarios.blogspot.com