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Breakout session day 2 fiber for everyone anne mari leppinen

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FTTH Conference Milan 2011 Day 2

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Breakout session day 2 fiber for everyone anne mari leppinen

  1. 1. SUUPOHJAN SEUTUVERKKO OY FINNISH FTTX –NETWORK OWNED BY THE COMMUNITIES
  2. 2. • Size of the region: 5000 km2• Population: 44 000• The density: 8,8 inhabitants/km2 (in Italythe density is 200 inhabitants/km2 and inJapan 336 inhabitants/km2).• The region has over 70 villages with 50-500 people per village and sevenmunicipality centres.Region facts
  3. 3. Examples of overchargingo Over half of the villages in the region did not have any broadband connections in 2004 Hospital •Hospital needed 5 telephone lines from the city hall which were in the same cable so the operator naturallyo None of the national broadband charged the same cable 5 times companies were willing to invest in the area, instead they started to take away the ADSL connectionso The local communities were paying LOTS of money for renting the copper connections which were highly overcharged CITYo The communities were looking ways HALL to cut costs but at the same time to build their own ICT networks and services to match the future demands and challenges as well as School strengthen the co-operation •The school was located 100 meter from the city hall but because the length of the connecting copper was 2 km, the operator charged the rent for the whole distanceBackground
  4. 4. o Suupohjan Seutuverkko Oy is a limited company owned by six communitieso Founded in 2005o The purpose is to build and operate FTTx-network, not to provide serviceso Suupohjan Seutuverkko Oy is a member of Finnish Open Networks o FIONETS is a group of Open Access FTTx-networks in Western Finland o Members co-operate in marketing, purchasing, building, supervision, service distribution etc. o If f.ex. a few villages decide to build FTTx-network of their own, it’s hard to get services o By joining FIONETS they get all the same services which are used in FIONETS networksThe company facts
  5. 5. o There are about 2000 households and businesses with FTTx-connection o All the public places such as schools, hospitals, libraries, day care etc. have fibre and they form one big secure intranet o The length of the network is about 1500 km o All the villages in the area have FTTx- network and anyone can join it! Many o IPTV services have improved customers in little villages are already the poor TV-quality in some using 100 Mbits/s symmetrical areas connections! o The FTTx-network has also o Fast internet connections have made it improved the 3G-coverage possible for people as well as businesses to survive in the countrysideThe present situation
  6. 6.  Owning and operating the network has been totally separated from providing services The FTTx customers such as normal households and businesses are totally free to choose and change their ISP from a variety of choices This enables free competition among ISPs and can be seen in decreasing prices and incresing quality ◦ the cost of for example 100Mbits/s symmetrical connection has decreased by over 20 euros when new ISPs have entered the network! ISPs do not have to invest in the physical cable, they can concentrate on the services Every ISP (no matter if it’s a big national or small regional ISP) is equal from the customer’s point of viewA true Open Access network
  7. 7. The structure SEINÄJOKI KURIKKAINTERNET TEUVA KAUHAJOKI INTERNET KARVIA KARIJOKI ISOJOKI COMMUNITIES WHICH WANT TO JOIN THE NETWORK
  8. 8. o So far about 7,5 million euros have been invested into FTTx-network o Bank loans 3 million o Different regional, national and EU-fundings 2 million o Other 2,5 milliono This amount does not cover normal every day expenses such as wages, rents etc.Finance
  9. 9. FINANCE Monthly network Services for FTTx –purchase price, Selling of black fibre, payments, communities such as about 1500-2000 euros capacity etc. 24,60 intranet, internet, euros/customer/mo telephone etc. This covers parts of the This covers parts of the This is used to cover This is used to pay FTTx-network building FTTx-network building the fixed costs such as back loans and costs costs rent, wages etc. interestsThe annual net profit has been positive every year!!!
  10. 10.  In addition to serving our households, we have also started to market our network as a testbed  Co-operation with different software and hardware manufacturers around the world ◦ giving them the possibilty to preform user driven tests in a real FTTx- network before launching their products to the markets  This way they get valuable end- user experience on what was good and badNew ways to use the network
  11. 11. QUESTIONS ?WWW.SUUPOHJANSEUTUVERKKO.FI

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