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Ad Ketelaars - Services offered over municipal network


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Presentation at the Workshop on Municipal Fiber Networks, October 24th 2011 in Ghent, Belgium. The workshop was organised by Ghent University - IBCN / IBBT. More information about this event can be found at http://

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Ad Ketelaars - Services offered over municipal network

  1. 1. Municipality Eindhoven, FttX NetworksAd Ketelaars Programdirector Broadband & innovations with ICT Municipality Eindhoven, Economical affairs +31 (0)40 - 2386031 +31 (0)6 - 20496352 Municipal FttX Networks 1
  2. 2. Content• Introduction Eindhoven (Brainport) region.• Policy (vision): “Glasrijk Eindhoven”.• Some FttX programs.• Are we ready?• Next steps!• Learned lessons.• Revenues.• Questions & dialogue.• Background sheets on some FttX projects. Municipal FttX Networks 2
  3. 3. Eindhoven region (1) Netherlands Brainport (Eindhoven region)Municipal FttX Networks 3
  4. 4. Eindhoven region (2) plaatje High Tech Campus TU/e Campus High Tech Automotive Design High Medical Eindhoven & Campus Helmond Campus Campus** Incubators• A chain of open innovation campuses.• Triple Helix coöperation: Industry – Educational & Knowledge institutes – Government.• Integral socio-economic ambitions: Sustainable Eco-system.• Top economical clusters: High-tech Systems and Materials, Chemical industry, Life Sciences.• Clusters in development: Smart mobility, smart materials, energy (solar & built environment), industrial design, Food & technology, Design, ….• Top organisations with R&D: Philips, ASML, NXP, FEI, Daf - trucks, VDL, TOMTOM, …… Municipal FttX Networks 4
  5. 5. Policy: Glasrijk Eindhoven 2003Vision:• ICT & open digital infrastructures are: - axis of innovation & growth. - conditional for sustainable eco-system.• Networks are not open (due to bu-model incumbants & lack of regulation) and limits our ambitions & goals.• Municipality facilitates & initiates. (Network)investments must be marketdriven (sustainable bu-case).• Social challenges are also economic chances.Goals:• Open fiber network for all inhabitants, SME’s, institutes & objects (internet of things).• Stimulation of (innovative) use for socio-economic goals.Strategy:• Seduce investors to invest in “open” FttX networks.• Create initiatives to force openness.• Creation of awareness on: marketfailure & alternatives.• Creation of (thematic): demand-, innovation- and upscaling-initiatives (pain & gain).• Using our own demands (launching customer role).Note: Target NGA coverage Brainportregion: 2011 - 15%, 2015 - 45%, 2020 - 90% Municipal FttX Networks 5
  6. 6. Some FttX programsMunicipal FttX Networks 6
  7. 7. Some Innovation programs & organisations• Schoolnet Eindhoven & Brabant: - Business-improvement -> cost-reduction -> educational innovation with ICT/broadband.• Security & technology: - Cybercrime research & (public-private) camera security solutions & innovations.• Living Home Labs: - Health/care, Sports, Light*, ……• EIT-Labs: (European, Innovation & Technology) - ICT, Inno-energy, Health*.• Dutch Learning Lab*: - Research, training, education on “topics” Learning (for life).• Local Innovation program (municipality): - Empowerment, social cohesion, E-participation, Open Data, Energy, Health & Well being, Education.• Business innovations & start-up centres: - HTC, HTAC, Incubater 3+, ….. Municipal FttX Networks 7
  8. 8. Are we ready?NO not yet, because of:• Infrastructure (& organisations) challenges: - Coverage: geographical & targetgroups. - “openness” issues. - Network services (Managed Service Lane, 2 lane model) for (socio-economic) innovations. - Integration of FttX networks & organisations.• A lot of “innovationprojects & programs” with positive results and enrichment in terms of knowledge, but also challenges on: - Upscaling, valorisation (soci - economic). - Synergy & integration between programs (transsectoral). - Collaboration within and between sectors. - Innovation- & clientcentric- attitude of serviceproviders. Municipal FttX Networks 8
  9. 9. Our next Steps: General (1)• Infrastructure: - Synergy & integration different infrastructures. - Open up “closed” structures, incl. managed service lane. - Roll-out to al targetgroups in Eindhoven and region. - Expand use of network by governmental organisations.• Usage & innovation: - (Re)develop integral digital agenda, organise extensive collaboration & innovation clusters for: • Increase of services(providers) for further competition & improving businesscase. • Development & upscaling of innovative socio-economic services. Municipal FttX Networks 9
  10. 10. The next Steps (2): Open Closed model Open Model Open (Netwerk determines (Competition of multiple Services & providers) Serviceproviders) Social & Innovation Model Serviceproviders ISP’s Seperated3 Internet, Telefonie, TV Players per layer. Or Regulated layers 2 or more layers Seperated Owned/controlled Players per layer.2 Equipment, management, routing By one Or + entity Regulated layers Social wholesales Underground infrastructure. Services (financed through1 Duct, Fibers. (Dark Fiber) Commercial volume Services) Businessmodel PPS Municipal FttX Networks 10
  11. 11. Network model Eindhoven (2012-2014). Regulated “open” Commercial & NUTS for socio & public services & innovation Standard commercial, “Closed, ISP lock-in) Business Consumer Social service organisations Managed ISP: Edutel ISP: Lijbrandt ISP: XS4ALL ISP: KPN ISP: Vodafone “Free” ISP’s Lane (Reggefiber) (Reggefiber) (KPN) Layer 3 Wholesales Social Wholesales Agreement Agreement Actieve Operator: KPN W&O, Neutral Operator: Reggefiber wholesales Aquestora (PPS) Layer 2 Schoolnet Eindhoven ODF-regulation Living Lab Health Passive Operator (NEMe*, 100% Reggefiber) Layer 1Challenges:- Investment climate - ODF for all targetgroups & area’s- Position Neutral operator - BRE/GvE integration- Neutral operator Reselling DF for BRE users - Participation Municipal FttX Networks 11
  12. 12. Learned lessons (1)• Clear (public) policy and actionplan on ambition, role & importance. - Use your rights, position, benefits and regional attractiveness. - Know the market (players, bu-models, competion, developments). - Be “pigheaded”, idealistic & follow your ambitions.• Incumbants are only interested in positions (lock-in), standards, volume,…. - Incumbants are not flexible, use them in a constructive way, don’t try to change them but create workarounds on some topics.• Create: sustainable successes, awareness, pain & coalitions. - Act as a launching customer. - Use the force of inhabitants, SME’s, organisations (partners), etc. - Focus on: targetgroups with ambition (willing), problems & realistic solutions. - “Small” stimulating (confronting) sustainable intitiatives.• Creation of Open infrastructures does not automatically lead to “(smarter) use”. - Combine infrastructure & usage ambitions. Municipal FttX Networks 12
  13. 13. Learned lessons (2)• Small initiatives are good instruments but, be aware on: - Quality of organisations. - Control (instruments), organisations tend to develop own interests. - Hostile takeovers. - Fragmentation, collaboration between initiatives.• There is not “one” model/solution for all challenges. - Be flexible & creative. - Select best model (per case), keep in mind the overal objective incl. synergy. - In the end it is all about a sustainable businesscase.• Get neutral & creative support, don’t loose control. Fiber (ICT) are means, driving forces are thematical and based on political & economical drivers. Municipal FttX Networks 13
  14. 14. Revenues• General: - More attractive for (knowledge) institutes, SME’s, inhabitants, students. - Improved climate for socio-economic innovations and related investments. - Increased triple helix coöperation. - Improved Imago, eg. “smartest region of the world 2011”.• Concrete: - Increased social cohesion (research: I-vision, TU/e). - Increased service portfolio & freedom of choice for customers. - Indications of more business innovation SME’s (research: TU/e). - Increased collective & cohesive parkmanagement. - Improved competition & growth of regional innovative ISP’s. - Educational organisations: ICT cost < 25%, increased SLA’s, collaboration & educational innovation. - Health/Care organisations: functional benefits, costreduction, collaboration & innovation. - Large organisations: ROI < 2 years, increased sectoral collaboration. - Costreduction on public services (camera’s, traffic-lights, etc.). Municipal FttX Networks 14
  15. 15. We created a good starting position for an innovative socio-economic future. ENDMunicipal FttX Networks 15
  16. 16. Questions & dialogue• Appendix, some background information sheets on: - BRE - EFX - GVE - ONSNET/NEMe - Schoolnet - Living Home Lab Health (fase 1) Thanks for your attention, questions & suggestions Municipal FttX Networks 16
  17. 17. Some FttX related programs: BREBRE (Broadband Region Eindhoven):• Institutes required Broadband for own purposes not offered by market (price/prestation).• 23 large institutes decided upon creation of a collective Dark Fiber Backbone & rental of fibers for other (future) users.Achievements:• ROI achieved within 2 years.• Current Use > 200 (large) organisations, centre of Eindhoven region, beperkt vermaasd• Stimulated sectoral use & collaboration for eg regional health organisations, fire- departments, (public) security organisations, knowledge & educational institutes, FttX initiatives, …Challenges:• Use (portfolio) limited for inter-compagnie-institute use, not for “services” to small SME’s and/or inhabitants.• Not usable for smaller organisations.• Growth limited due to marketsaturation Dark Fiber, limited geographical spread and meshed and no collective investmentsagreement between social stakeholders. Municipal FttX Networks 17
  18. 18. Some FttX related programs: EFX• EFX (Eindhoven Fiber Exhange, marketplace): (foundation): - Founding fathers: Municipality Eindhoven, TU/e.• Mission: - R&D on Fiber technologies. - Reducing lock-in customers, enhancing competition.• By: - Interconnection of different (competing) infrastructures. - “Opening” closed infrastructures. - Marketplace for ISP’s (towards infrastructures & customers).• Achievements: - Facilitated a lot of regional (local) initiatives and connections for organisations. - Reduced costs for (large) ISPs and stimulated price competition. - Reduced monopoly position of incumbants.• Challenges: - “local” reach. - “exclusion” large ISP’s forced by wholesales pressure incumbants. - Incumbants refusal to corporate limits reach & openness. - Limited awareness (push) from customers. Municipal FttX Networks 18
  19. 19. Some FttX related programs: FttH ONSNET• Facts & figures: - FttX Initiative for inhabitants (Triple play, 100Mb/s symetrical) in 25.000 Eindhoven households. - 50% owned by (4) housing associations organised in Lichtrijk and 50% Reggefiber. - ONSNETeindhoven (cooperation) for customerservices & realisation of clientcentric portfolio. - Highest participationlevel in the Netherlands (from 40% up to 80%). - Triple Play offer approx. €50 month. - Free portal & videoconferencing services for inhabitants & organisations. - Facilitating Living Lab programs.• Challenges: - Remaining households (Eindhoven 75.000). - Withdraw of housingassociations. - “Magic” image of coöperation ONSNET reduced. - Portfolio is limited distinctive. Municipal FttX Networks 19
  20. 20. Some FttX related programs: GvEGVE BV (Glasvezel Eindhoven):• Facts & figures: - FttB Initiative for large businessparks in Eindhoven (7 out of 9, potential ca.1600 SME’s). - Netwerkportfolio GvE: Layer 1 & 2 services. - Layer 1 owned by parkmanagement organisations (SME’s). - Layer 2 provisioning by BBNED (Tele-2) controlled by GvE - Functional services offered by multiple ISP’s selected by customers. - Backbone BRE, Marketplace EFX. - Financed by SME’s, Bank & guarantee municipality. - Businesscase: participation-level 30%, 5 year contract, €140 E/month.• Achievements: - 400 SME’s and growing, combination with local services like Camera-protection and Cloudproposals for smal SME’s (Starting). - Multiple (smal, regional) ISP’s. - TU/e: investigation shows that innovationlevel of connected SME’s exceeds other SME’s!• Challenges: - Remaining businessparks (region). - SME’s not located on businessparks. - Neutrality Layer 2 party (VLAN, Wholesales limitations ISP’s by BBNED). - Innovative and differentiation of use. - Portfolio development small SME (combinations). - Limited vision & knowledge at stakeholders & SME’s on developments and future gainings. Municipal FttX Networks 20
  21. 21. Some FttX related programs: SchoolnetSchoolnet: initiative of Municipality & Educational organisations.• Facts & figures: - Incidental stimuli via municipality by national government for improvement knowledge economie - 3 lines: infrastructure -> businessadvantages -> educational development and usage. - Approx 80% of primairy & secundairy schools connected. - Based on FttH & BRE layer 1 infrastructure, combined with Neutral Layer 2 player just offering interconnection services & internet Access. Services from ISP’s as selected by schools. - Network & Internet (100 Mb) €175 / month (5 year contract)• Achievements: - Outsourcing ICT systems & management, better kwality less costs (> 25% ICT related costreduction). - Collaboration projects started on services: Internet, telephonie, security, platforms for videoservices & educational content sharing. - Number of educational projects: sharing teachers, E-learning, contentdevelopment & sharing, classcombinations, remote teaching, etc.• Challenges: - Formalising “one” facility organisation for all schools. - Remaining schools. - Knowledge & experience sharing. - ICT policies & translation to operations. - Limited resources & knowledge on schools. Municipal FttX Networks 21
  22. 22. Some FttX related programs: Living Lab Health, results• Improved health levels, durable Stakeholders intent to: movementpatterns, social contacts, - Adjust services language skills. - Add more fun & socializing• “Basic” services are to rigid and limited and components must enable more social issues and fun. - Introduce services for non-• Service limitations, kills innovative usage. commercial support• Friends & relatives can and will help if - Plan to develop & exploit integral facilitated with proper tools. services together.• Insight information on pricing – value - Started joining forces in order to adding eleminate indicated “tresholds” for• Combination of fysical & virtual approach scaling up. proved to be essential.• Elder people will & can use value adding E-services and especcially not only for “health”. Municipal FttX Networks 22
  23. 23. ENDMunicipal FttX Networks 23