Why and how to build open public FTTH networks

1. NÖ Glasfaserinfrastrukturgesellscha3 mbH
Niederösterreichring 2, 3100 St. Pölten
office@noegig.at | +43-2742-9000-19770
Why and how to
build open public
FTTH networks
The Lower Austrian Modell
Dr. Igor Brusic

2. Province of Lower Austria
~ 1.600.000 inhabitants
= 85 per km2
573 municipalities
25 districts
~ 750.000 households
~ 80.000 SMEs
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07.08.18
i.brusic@noegig.at | +43-2742-9000-19767
Niederösterreichring 2, 3100 St. Pölten
2

3. Why to build open public FTTH networks?
1. No sustainable broadband in rural areas à not really a technical issue
2. Technically everything is clear à the soluVon is Fiber to the Home (FTTH)
3. Between 60-80% of the total cost is digging à FTTH is an infrastructure
project
4. TreaVng the project in the same way as water, sewage, energy grid and
roads à paradigm change
5. The largest service compeVVon in a wholesale only mode à 3LOM (3-
Layer-Open-Model)
07.08.18
office@noegig.at | +43-2742-9000-19770
Niederösterreichring 2, 3100 St. Pölten
3

4. 3-Layer-Open-Model
07.08.18
4
L3: Service
Providers
L2: Ac1ve
(Wholesale-only)
Operator
L1: Infrastructure
Operator
i.brusic@noegig.at | +43-2742-9000-19767
Niederösterreichring 2, 3100 St. Pölten

5. 3-Layer-Open-Model
07.08.18
5
L3: Service
Providers
L2: Ac1ve
(Wholesale-only)
Operator
L1: Infrastructure
Operator
i.brusic@noegig.at | +43-2742-9000-19767
Niederösterreichring 2, 3100 St. Pölten

6. 3-Layer-Model: Revenues for the Consumer Market
07.08.18
6
L3: Service
Providers
L2: Ac1ve
(Wholesale-only)
Operator
L1: Infrastructure
Operator
€ 10 – 15
€ 8 - 10
Internet
€ 5 - 8
IPTV
€ 10 - 20
Telephony
€ 3 - 5
Cloud
Services
€ 5 - 6
i.brusic@noegig.at | +43-2742-9000-19767
Niederösterreichring 2, 3100 St. Pölten

7. Financial Needs & Resources
Phase 1 + Phase 2
140.000 units Vll 2022
210 Mio.
(25,1%)
(74,9%)
310 Mio.
Investors

8. Spill-over effects from FTTH
07.08.18
8
Private investor
Return of investment only with the passive infrastructure
Public investor
Return of investment not only with infrastructure but also through
externaliVes like:
rising employment | higher tax income | reduced ouelow of
people| business seflement | CO2 reducVon | befer
educaVon and e-learning | improving health quality | reduced
traffic congesVon | teleworking | etc.
i.brusic@noegig.at | +43-2742-9000-19767
Niederösterreichring 2, 3100 St. Pölten

9. Pilot Project Overview
07.08.18
9
Four pilot regions in progress
(2015-1018)
34.000 households
30 municipaliVes
1. Step: 40% infrastructure orders
triggering the roll-out of a build
out area
2. Tendering the construcVon for
building the passive infrastructure
3. InstalaVon of the acVve
equipment by the wholesale
operator
i.brusic@noegig.at | +43-2742-9000-19767
Niederösterreichring 2, 3100 St. Pölten

10. FTTH in Rural Areas is a Success!
07.08.18
10 i.brusic@noegig.at | +43-2742-9000-19767
Niederösterreichring 2, 3100 St. Pölten

11. Percentage of fibre connecOons in total broadband
subscripOons
Sweden
61.8%
Austria
1.8%
Source OECD, Dez. 2017
office@noegig.at | +43-2742-9000-19770
Niederösterreichring 2, 3100 St. Pölten
11
07.08.18
Japan
76.7%
OECD
23.3%
Germany
2.3%

12. Experience and RecommendaOon
• „Broadband problem“ can be solved only by Fiber to the Home (FTTH)
• PopulaVon / SME are interested in public and open fiber
• Only city / municipality has interest in 100% coverage (as with any other
public uVlity)
• For individual communiVes, generaVng returns from FTTH is complex
• Public infrastructure companies are a good way (Lower Austria, Upper
Austria, Styria, Carinthia)
• Federal infrastructure company makes sense
office@noegig.at | +43-2742-9000-19770
Niederösterreichring 2, 3100 St. Pölten
12
16.03.18

13. “We can't solve problems
by using the same kind
of thinking we used
when we created them”

14. It‘s not broadband…
… it‘s all about
infrastructure

15. NÖ Glasfaserinfrastrukturgesellscha3 mbH
Niederösterreichring 2
3100 St. Pölten
+43-2742-9000-19770
office@noegig.at
www.noegig.at
Thank you!