The Korean strategy to promoteNGAN: any lesson for Europe?CREATE-NET and EAI. Riva del Garda, 4th of October 2012Luigi SCO...
Asia leader in FTTB/H development…Sweden: 29,8%Italy: 2,1%France: 0,9%Germany: 0,6%Korea: 58,2%Luigi Scorca / The Korean s...
.. + Korea has very high download speed.Median > av. bb speedLuigi Scorca / The Korean strategy topromote NGAN: any lesson...
The outcome.• Regarding NGAN, Korea has:– Coverage (58,2% only by fiber);– Penetration (85,3% = over 17 mln. households);–...
Korean Broadband policies: 3 steps.1993 2003 2005 2009 2010 2013Korea Information InfrastructureBroadband Convergence Netw...
Korea Information Infrastructure (1)1993 2003 2005Korea Information InfrastructureR&D (100m$)Deployment(800m$)Diffusion(72...
Broadband Convergence Network (2)2003 2005 2009 2010Broadband Convergence NetworkBroadband(Wire >50Mbps,Wireless >2Mbps)Co...
Giga-Internet (3)2009 2010 2013Giga-InternetMore traffic =more speedPPP(1:1:2)Provide Giga-internet commercial service.(1G...
An overview over variables at stakeActors Objectives ToolsFactors(EU Commission)NRA/NCAGovernmentIncumbentsOLOOTTUncertain...
Some lessons for Europe (1)• Strong public intervention for infrastructuredevelopment (minor reliance on marketforces/priv...
Some lessons for Europe (2)• PPP: public side taking the risk with pilot projects.• Promoting infrastructure deployment, b...
Some lessons for Europe (3)• Technology choice (notech. neutrality!): go(mostly) fiber andpromote mobilebroadband;• Cost r...
The Korean lesson:“It’s a matter of priorities”• Promote the deployment of a future-proofnetwork (coverage and speed) and ...
What should Europe do?with ntargets, you need a dynamic, multi-steps, frameworkLuigi Scorca / The Korean strategy topromot...
Thanks for yourattention!www.luigiscorca.euls@luigiscorca.eu
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The Korean strategy to promote NGAN: any lesson for Europe?

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The Korean strategy to promote NGAN: any lesson for Europe?

  1. 1. The Korean strategy to promoteNGAN: any lesson for Europe?CREATE-NET and EAI. Riva del Garda, 4th of October 2012Luigi SCORCAIndependent Advisor, European Law and Economics Analysis.Expert in Broadband regulation/policies.Ph.D candidate, Bocconi University – Milanls@luigiscorca.eu / Web: www.luigiscorca.eu
  2. 2. Asia leader in FTTB/H development…Sweden: 29,8%Italy: 2,1%France: 0,9%Germany: 0,6%Korea: 58,2%Luigi Scorca / The Korean strategy topromote NGAN: any lesson for Europe?
  3. 3. .. + Korea has very high download speed.Median > av. bb speedLuigi Scorca / The Korean strategy topromote NGAN: any lesson for Europe?
  4. 4. The outcome.• Regarding NGAN, Korea has:– Coverage (58,2% only by fiber);– Penetration (85,3% = over 17 mln. households);– Speed (real one, not just adv., see previous slide);– Prices are affordable (100 Mbps = 25-30$/m <than in EU, except Sweden).• How Korea did it?• Is there anything Europe can learn from?Luigi Scorca / The Korean strategy topromote NGAN: any lesson for Europe?
  5. 5. Korean Broadband policies: 3 steps.1993 2003 2005 2009 2010 2013Korea Information InfrastructureBroadband Convergence NetworkGiga-InternetLuigi Scorca / The Korean strategy topromote NGAN: any lesson for Europe?
  6. 6. Korea Information Infrastructure (1)1993 2003 2005Korea Information InfrastructureR&D (100m$)Deployment(800m$)Diffusion(720m$)Environment for high-speed networks (research)Deploy nationwide network: costof portion connecting publicsector is paid by Govt. (subsidyto the contractor/operator)Expand commercialnetwork and providingservices.Loans (soft) to operators topromote access network.Luigi Scorca / The Korean strategy topromote NGAN: any lesson for Europe?
  7. 7. Broadband Convergence Network (2)2003 2005 2009 2010Broadband Convergence NetworkBroadband(Wire >50Mbps,Wireless >2Mbps)Convergencewire/wireless)Convergence(voice/data.TLC/TV,wire/wireless)Public-private partnership.• Govt: Pilot projects, ecosystem, standards;• Private: network roll-out, servicecommercialization.Luigi Scorca / The Korean strategy topromote NGAN: any lesson for Europe?
  8. 8. Giga-Internet (3)2009 2010 2013Giga-InternetMore traffic =more speedPPP(1:1:2)Provide Giga-internet commercial service.(1Giga in cities, 100 Mbps in rural areas)+ 3G datacapacityOff-loading :Wi-fiLuigi Scorca / The Korean strategy topromote NGAN: any lesson for Europe?
  9. 9. An overview over variables at stakeActors Objectives ToolsFactors(EU Commission)NRA/NCAGovernmentIncumbentsOLOOTTUncertaintymarketregulat.Costs/financingRegulationPublicintervent.PPPprice accessDemandincentivesFiscalincentivesSpeedCoverageMarket/CompetitionProfitsIndustr.policiesServServ.ROILuigi Scorca / The Korean strategy topromote NGAN: any lesson for Europe?
  10. 10. Some lessons for Europe (1)• Strong public intervention for infrastructuredevelopment (minor reliance on marketforces/private investments):– R&D;– Financing operator(s) via:• Contracting a nationwide network for public offices;• Soft loans for widening high-speed access network.• Clear policy choice: service-based competition(instead of infrastructure-based one).Luigi Scorca / The Korean strategy topromote NGAN: any lesson for Europe?
  11. 11. Some lessons for Europe (2)• PPP: public side taking the risk with pilot projects.• Promoting infrastructure deployment, but at thesame time promoting services (and demand)too.– Public intervention = catalyst.– Promoting digital knowledge/needs by targetinggroups of population (elderly, militars, young people,etc.).Luigi Scorca / The Korean strategy topromote NGAN: any lesson for Europe?
  12. 12. Some lessons for Europe (3)• Technology choice (notech. neutrality!): go(mostly) fiber andpromote mobilebroadband;• Cost reductionmeasures: less civilworks (digging) where ispossible.“if you want to succeed,make things easy.”Luigi Scorca / The Korean strategy topromote NGAN: any lesson for Europe?
  13. 13. The Korean lesson:“It’s a matter of priorities”• Promote the deployment of a future-proofnetwork (coverage and speed) and demand, thenthink to competition.– Wi-fi to offload mobile broadband infrastructure(think forward, before bottlenecks appear!).• Koreans do not target just the market (leaving thefloor to private investments), but all the digitalecosystem (and as a public goal).Luigi Scorca / The Korean strategy topromote NGAN: any lesson for Europe?
  14. 14. What should Europe do?with ntargets, you need a dynamic, multi-steps, frameworkLuigi Scorca / The Korean strategy topromote NGAN: any lesson for Europe?Define a “digital strategy”:- Coverage and speed;- Technology;- Whichmarket/competition.Modify regulationaccordingly:- No uncertainty – room fordifferent approach ormethodology;- Prices;- Access.Define the space for publicintervention.Funding:- PPP;- CEF (?);- EU State Aids;“Life is like a bicycle, to keep your balance you must keep on moving.” (A. Einstein)
  15. 15. Thanks for yourattention!www.luigiscorca.euls@luigiscorca.eu

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