Cedarcom views on true Broadband Lebanon and how to get there
Cedarcom views Cedarcom views ontrue Broadband Lebanon and how to get there and how to get there SAMENA SAMENA April 29th 2010
ARE WE HAPPY WITH CURRENT INTERNET & DATA SERVICES?NO!• Why? • WHO IS TO BLAME?• WHAT DO WE DO? WHAT DO WE DO?
Current Status Current Status• Lack of true Broadband on DSL or Wireless – Nominal Speed of 1 Mbps or less – Very Low Effective Speed – 128 Kbps 2 Mbps – Very High Tariffs to Consumers & Low QoS! – Very High BW costs $2700/E1 y g• Strong Illegal Market (size at least comparable to legal market) to legal market)• Unfair Competition Practices• R l t Regulatory uncertainties t i ti
Current Status /2 Current Status /2• Customers are unhappy with their broadband experience• Public perception is that broadband is going nowhere & that it is the DSPs/ISPs fault! nowhere & that it is the DSPs/ISPs fault!
The way moving forward to ACHIEVE true Broadband1. Define Broadband (In 2 flavors – Wireless & Wired/FTTx) Define Broadband (In 2 flavors Wireless & Wired/FTTx) – Speed in Mbps – Capacity in GB2. Define our Country’s Vision 2010 – 2015 – 2020 – Tax generator or GDP growth catalyst? T t GDP th t l t? – Legal right? – Geographical availability?3. Offer incumbent operators the “enablers” to achieve the Broadband Vision
The CURRENT MARKET LANDSCAPE The CURRENT MARKET LANDSCAPESERVICES & Mobile Fixed Mobile Fixed Data Internation International In‐ License Fee License Fee Infrastructure Voice Voice Voice Voice Data wireless al Voice wireless al Voice Data Data country on Voice & on Mobile country on Voice & on Mobile /copper Gateway Gateway Fiber Fixed Data DataMIC1 & MIC 2 Y N N (GPRS is N Y N N None None not BWA)MoT/Ogero N Y N Y Y Y Y None NoneDSPs & ISPs N N Y Y (FBWA & N N N 20% RS + 20% RS + ADSL) 100 mil 100 milNo. of Camps 1 Camp, 2 1 Camp, 1 1 Camps, 4 2 Camps, 5 2 Camps, 3 1 Camp, 1 1 Camp, No of Camps 1 Camp 2 1 Camp 1 1 Camps 4 2 Camps 5 2 Camps 3 1 Camp 1 1 Camp& Operators Operators Operator Operators Operators Operators Operator 1 offering a (2 MICs) (MoT) (4 DSPs) (MoT, 4 (2 MICs, (MoT) Operator service DSPs) MoT) (MoT)
Consultant Views ‐ 1• A recent report by McKinsey & Company noted that “mobile broadband is uniquely d h “ bil b db d i i l positioned to stimulate economic growth and welfare in areas that lack adequate fixed‐line lf i h l k d fi d li broadband infrastructure.” McKinsey estimates that “a 10 percent increase in i h “ 10 i i broadband household penetration delivers a boost to a country’s GDP that ranges from 1.0 b ’ GDP h f 10 percent to 1.4 percent.”
Consultant Views ‐ 2• Demand for mobile broadband products and services are, as Cisco characterizes, “hard to overestimate.” Cisco forecasts that globally, mobile data traffic will double every year through 2013, increasing 66 mobile data traffic will double every year through 2013 increasing 66 times between 2008 and 2013. According to Cisco, the mobile data traffic footprint of a single mobile subscriber in 2015 could very well be 450 times what it was in 2005.• The amount of spectrum required by operators to meet the new p broadband imperatives: ITU undertook to determine how much spectrum would be needed per country in the years 2010, 2015 and 2020.
The way moving forward to ACHIEVE true Broadband ‐ 21. Broadband Defined: Speed in Mbps Capacity in GB Wireless Broadband 10 Mbps 12 GB to Unlimited Fixed/DSL i d/ Up to 20 Mbps b 12 GB to Unlimited li i d FTTx Up to 100 Mbps 50 GB to Unlimited2. Broadband Vision 2010 – 2015 –2 B db d Vi i 2010 2015 2020 – GoL stated the vision that Broadband is a “CATALYST” for the economy, not a “CASH COW” source for the treasury. – Broadband delivery through wireless and wireline (copper, FTTx) – Open multiservice environment (internet, VoIP, IPTV, data, ...) Open multiservice environment (internet VoIP IPTV data )
The way moving forward to ACHIEVE true Broadband ‐ 3– B d li Broad license (spectrum, national and International ( t ti l dI t ti l fiber) to all incumbent operators– Rollout Obligations Service Availability example: Rollout Obligations, Service Availability example: • By 2011 in all cities with population larger than 10,000 • By 2014 in all cities with population larger than 3,000 By 2014 in all cities with population larger than 3 000– Legal right as of 2020 at speeds of at least 2 Mbps– New entrants New entrants– Need for TRA to take hands Off approach and not impose an artificial market segmentation impose an artificial market segmentation
Finland Broadband is a Human Right Finland Broadband is a Human Right• Starting July 2010, every person in Finland will have the right to a one megabit broadband connection, says the right to a one‐megabit broadband connection says the Ministry of Transport and Communications. • Finland is the worlds first country to create laws guaranteeing broadband access.• The government had already decided to make a 100 Mb broadband connection a legal right by the end of 2015. The b db d ti l l i ht b th d f 2015 Th Ministry announced the new goal as an intermediary step.• No household deserves to be "farther than 2 kilometers No household deserves to be farther than 2 kilometers from a connection capable of delivering broadband Internet with a capacity of at least 100 megabits of data a second by 2015” b 2015”
Finnish government promises fast broadband by 2015 b db d bThursday, 18 September 2008• S i Li dé ( Suvi Lindén (cons), the communications minister, said "The ) th i ti i it id "Th development of that infrastructure is to be guaranteed in a way that all members of the public and companies, regardless of location, will have an opportunity to use information society services,”.• Harri Pursiainen, the permanent secretary at the transport and communications minister, said the 100 Mbit/s target was modest, communications minister, said the 100 Mbit/s target was modest, adding households in Helsinki would have gigabit‐range speeds at their disposal come 2015. “Data connections are no longer entertainment but a necessity entertainment but a necessity”.• “Regional, equal communications infrastructure will not come about without state action.“ The government said it would discuss the funding of its broadband program over the course of the autumn”.
Germany Germany ‐ 1• With the recently announced German With the recently announced German Broadband Strategy, which has an initial target to have 100 percent of households served to have 100 percent of households served with at least 1 Mbit/s broadband access by the end of 2010. the end of 2010• The government wants the 800 MHz spectrum to be used for closing broadband coverage to be used for closing broadband coverage gaps in remote & rural areas.
Germany ‐ 2 yAn Ambitious Broadband Strategy in Germany ‐ March 9, 2009• Nov 2009, the German government outlined its definition of h li d i d fi i i f broadband Internet access, raising the threshold for Internet connection speeds from 384Kbps to 1Mbps and setting the connection speeds from 384Kbps to 1Mbps and setting the stage for an ambitious universal rollout by the end of 2010. • This is the first part of the government’s two‐phased strategy to deliver 50Mbps broadband connections to 75% of German households by 2014. • Th G The German model encourages collaboration between the d l ll b i b h public and private sectors — the government will deliver services in regions where private operators can t. services in regions where private operators can’t.
Spain pMADRID, Nov 17 2009 (Reuters) Spanish citizens will have a legal right from 2011 to be able to buy broadband internet of at least one megabyte per second at a regulated price wherever they live, the countrys industry minister said on Tuesday.The telecoms operator holding the so‐called "universal service" contract would have to guarantee it could offer i " t t ld h t t it ld ff "reasonably" priced broadband throughout Spain.
Broadband a Right in Lebanon or other Arab Countries? other Arab Countries?1. What prohibits Lebanon from adopting an aggressive futuristic strategy to make Broadband a Human Right in Lebanon or other Arab Countries? NOTHING! Just the will.2. Is it realistically achievable by 2015? Is it realistically achievable by 2015? Yes!3. Where do we start?3 Wh d t t? Proper licensing, spectrum, FO, fair competition!
URGENT Action Points to bring Lebanon to a true Broadband Nation B db d N i• Long Term License to Incumbent DSPs, including in‐ g g country & international fiber to incumbent DSPs. (in line w/ Telecom Policy Paper)• Assign Spectrum to incumbent DSPs that allows them to offer true advanced broadband services. That means at least 40 MHz is required: least 40 MHz is required: • 40 MHz on 2.3, or • 40 MHz on 2.5FINLAND’S POLICY THAT BROADBAND IS A HUMAN RIGHT TO EACH FINNISH. THEIR AUCTION IS PROOF THAT OPERATOR SPECTRUM NEEDS TO OFFER TRUE BROADBAND IS 40 AND 50 MHZ. Why can’t Lebanese have similar rights?
A humble message to all RegulatorsA humble message to all Regulators• Build it & they will come? ld h ll• “Give us a license & we will Give us a license & we will build it”
A humble message to all Regulators A humble message to all Regulators ‐ 2 • “Even if you don’t give us a long Even if you don t give us a long term license, we will build it” –Believe in country! –Believe in the rights of individuals –Believe in the rights of individuals to have Broadband services!
Thank you! Th k ! Imad Tarabay I dT b Chairman / CEOCedarcom‐Mobi GroupC d M bi G email@example.com