1. Bottom up
Broadband
10 years of Dutch fibre initiatives
Connected Communities Mutual Learning seminar
Brussels – June 26th 2015
Oscar Vinck – oscar@vinck.com

2. Killer app revealed
Just hold on

3. Quick bio: Oscar Vinck
 Service development manager
 Kenniswijk 2002 – 2005
 Referee at neutral Layer 2 exchange
 director at EFX 2008 – 2013
 Bottom up broadband initiator
 director at co-operatives HSLnet
and others (2012 – now)
 Broadband facilitator
 since 2001 partner at several
broadband consulting companies

4. Top down vs Bottom up

5. Drivers for FTTH development
 3 Dutch examples
 Governmental driven
 Kenniswijk project (2000-2005)
 Market driven
 Reggefiber projects (2005-now)
 Co-operative driven
 HSLnet project (2012-now)

6. Top down vs Bottom up
 We’re moving towards a sustainable society
20 - 30 years
Next Development phasePre Development phase
20 – 30 years
New paradigm
New institutions
New companies
TippingPoint
Old paradigm
Old institutions
Old companies
Time
We are here
Consolidation
Source: prof Jan Rotmans 2013

7. Quick recap: Broadband in NL
 Internet access at home 94%
 Broadband access at home 84% (EU: 144 kbps)
 EuroDOCSIS 3.0 & VDSL widely available
 FTTH availability
 Homes Passed ~30%
 Homes active ~11%
 Netherlands #15 European FTTH ranking
…and dropping fast
 What about white (rural) areas and non 3play services?
Source: telecompaper.com

8. Ex 1. Government driven

9. Ex 1. Government driven
 Kenniswijk project by Dutch National government
 2000 – 2005
 Ambition
 ‘to create an open consumer
market of the future along
with innovative services and
broadband infrastructure’
 Investments
 30M euro public financing
 >40M euro private financing

10. Ex 1. Kenniswijk
 Project principles
 Consumer plays a central role
 Public-private co-operation, open market
 Investments are done by private parties
 Kenniswijk is ahead of other
comparable regions in the Netherlands
 Kenniswijk offers a test bed for ICT innovations
 Experiments done in Kenniswijk must aim to be
implemented later on national level
 Kenniswijk is a national initiative with a regional format
and an international image

11. Ex 1. Kenniswijk
the consumer
new broadband
infrastructures
innovative
services
 Triangular approach

12. Ex 1. Kenniswijk
 Consumer offer 1
 KPN FTTH - XS4ALL , 2003
 Internet only, 10 Mbps
 € 85 / month
Homes
Active
 Consumer offer 2
 OnsNet co-op, 2004/2005
 Internet only, 10 Mbps
 € 0 / month (subsidized)
 Co-op was ‘taken over’ by private party
Homes
Active
11%
97%

13. Ex 2. Market driven

14. Ex 2. Market driven
 Reggefiber (since 2005)
 VolkerWessels Telecom – construction firm
 Reggeborgh – private investment company
 Incumbent KPN joined (2008)
 Investments EIB & banking consortium
 2010: +285M euro
 2012: +280M euro
 Regulated Layer 1 open access model

15. Ex 2. Reggefiber
 2015 Q1: 2.05M homes passed
source KPN
source Reggefiber

16. Ex 2. Reggefiber
2010 2011 2012 2013 2014 2015
 Homes passed per year since 2010
myguess
Jan ‘14
+385K
+385K
+293K
+152K
+285K
+150K
source KPN & telecompaper.com
Nov ‘14

17. Ex 2. Reggefiber
 What happened Jan 1st 2014?
 KPN gained 60% of shares
 KPN gained full control
 100% shareholder Nov 2014
 KPN statement (Feb 2014)
 Slowing down FTTH roll out
because of wide spread availability VDSL
 VDSL 70% available
 FTTH 26% available
 Is this the end of the market driven FTTH in NL?
source KPN & telecompaper.com

18. Ex 2. Reggefiber
 Consumer offer
 Triple play, including CATV & 100 Mbps
 € 50 ~ 70 / month
 >20 service providers active
Homes
Active
32%
27%
Q3 2011
Q3 2013

19. Ex 3. Co-op driven

21. Ex 3. Co-op driven
 Town of Heeze-Leende
 10km SE of Eindhoven
 15.000 inhabitants
 7.000 households
approx. 15% rural
 Large elderly
population
 Home ground
of Rabobank
co-op

23. Ex 3. HSLnet co-op
Layer 3
3play services
Layer 2
netw equipment
Layer 3
3play services
Layer 2
network equipment: open and accessible
Layer 1
rural areas
Layer 1
companies
Layer 3
social services
Layer 1
cities
Layer 1
cities & villages
Layer3
business services
Co-operative network HSLnetIncumbents
co-op is just another PIP

24. Ex 3. HSLnet co-op
the QUAD
Civil
AcademicPrivate
Public
• HSLnet co-op
• 100+ volunteers
• Local government
of Heeze-Leende
• Province
of Noord-Brabant
• Spitters
• aQuestora
• CanalDigitaal
• Plinq
• TriNed
• ZuidZorg
• Signet
• Eindhoven University
of Technology
• EFX
• Brainport
source Booz & Company 2012

25. Ex 3. HSLnet co-op
 Consumer offer
 Triple play, including CATV & 100 Mbps
 € 52 / month
 1 service provider active until 2014
Homes
Active60%
Q4 2013

26. Ex 3. HSLnet co-op
 Local municipality facilitating co-op
 TU/e research (Sadowski, 2012)
 Consumers hook up with HSLnet, because of
 Lower pricing (82%)
 Innovative environment (80%)
 Local identity & control (47%)
 …so HSLnet co-op needs to stay innovative!
 Users want to take part in service development (68%)
 Currently 50+ co-op initiatives in NL • 5 rolled out
 But, fierce competition from Dutch largest ISP: Ziggo
killer app alert

27.  Answering consumer’s needs will result in high uptake
 But, consumers are not aware of their needs
 Superfast internet access
 Outlook on innovative services
 Control on future developments & innovations
 Broadband access as a public service is a No Go
for Dutch national government
 Co-op initiatives and market players need to team up!
 First example in Dutch town of Hilvarenbeek
Round up
Bottom
up

28. Get co-operative!

29. Further reading & contact info
 Web (all in Dutch)
 general: www.hslnet.nl
 research: bit.ly/Oa889H
 video: vimeo.com/45631491
 E-mail
 oscar@hslnet.nl
 oscar@vinck.com
 Twitter
 @hslnet
 @ioscar
 Facebook
 www.facebook.nl/HSLnet

30. Thanks.