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SIVA project_Recommendation paper on infrastructure mapping (A531)
1. 1
Project acronym: SIVA
Project name: South East Europe improved virtual accessibility through joint initiatives
facilitating the rollout of broadband networks
Program: South East Europe Transnational Cooperation Program
Document Information:
Document title: Report on common policy approaches and suggested measures to
integrate infrastructure mapping and availability prerequisites in
network deployment and civil engineering construction works
Date of Delivery: 18/06/2014
Work Package: WP5
Work Package Title: Exchange of experience, administrative and policy measures to improve
the virtual accessibility of SEE areas
Work Package Leader: ERDF PP1 - Molise
Task: A531 Common policy processes and suggested measures to integrate
infrastructure mapping and availability prerequisites in network
deployment and civil engineering construction works
Task Leader: PEDDM
Distribution (R/P): Public
Nature: Report
History Chart
Date Changes Cause of change Implemented by
18/06/2014 Initial Document N/A PEDDM
Authorisation
Disclaimer
The information in this document is subject to change without notice.
All rights reserved
The document is proprietary of the SIVA Consortium. No copying or distributing, in any form or by any
means, is allowed without the prior written agreement of the owner of the property rights. This
document reflects only the authors’ view. The SEE Program is not liable for any use that may be made of
the information contained herein.
No. Action Partner Date
1 Prepared PEDDM 18/06/2014
2. 2
Table of Contents
1 Introduction ..........................................................................................................................................3
1.1 General context.............................................................................................................................3
1.2 Siva project....................................................................................................................................4
1.3 Scope and aim of deliverable........................................................................................................5
2 Infrastructure mapping.........................................................................................................................6
2.1 Position Analysis ...........................................................................................................................6
2.2 Problem description......................................................................................................................6
2.2.1 Bridging the digital divide .....................................................................................................6
2.2.2 Cutting the rollout costs of broadband infrastructure .........................................................8
2.3 Political Background....................................................................................................................11
2.3.1 Digital Agenda.....................................................................................................................11
2.3.2 EU regulatory framework for electronic communications .................................................11
2.3.3 NGA recommendation ........................................................................................................12
2.3.4 Regulatory measures to promote competition and enhance the broadband investment
environment........................................................................................................................................15
2.3.5 National broadband plans...................................................................................................16
2.4 Rationale for recommendations.................................................................................................18
3 Common policy processes and suggested measures..........................................................................25
3.1 Governance and strategic planning ............................................................................................25
3.2 Legal and regulatory framework.................................................................................................26
3.3 Approaches to finance................................................................................................................27
3.4 Human resources........................................................................................................................28
3. 3
1 Introduction
1.1 General context
A large growth in the use and diversity of information and communications technologies (ICTs) has been
witnessed worldwide the latest decade, with the rise of broadband being of particular note. Broadband
has been a critical factor in fostering sustainable economic growth and is strategic to the goals of
enhancing social cohesion and welfare. According to the Single Market Act II Communication1
, a 10%
increase in broadband penetration results in a 1%-1.5% increase in the GDP annually and 1.5% labour
productivity gains while broadband-induced innovation in companies creates employment and has the
potential to generate 2 million extra jobs by 2020.
However, the extent to which broadband infrastructure covers entire populations and regions is still not
clear. While there is a clear increasing trend towards the adoption of broadband globally, a significant
heterogeneous diffusion of broadband connections is quite evident among countries and within the
same territories. This fact has led many national and transnational political institutions, regulatory
bodies and independent agencies to place emphasis on facilitating access to broadband networks,
especially in non-competitive areas in order to address the existing digital divide.
In that context, the European Commission (EC) introduced the Digital Agenda for Europe (DAE)2
as one
of the flagship initiatives for Europe 2020 aiming at providing full broadband coverage and sustainable
economic and social benefits from a digital single market based on high-speed broadband services. In
order to facilitate the implementation of these objectives, the Digital Agenda for Europe highlighted the
importance for additional efforts to be made in the direction of overcoming the funding difficulties
arisen in the context of broadband network deployment.
One useful strategy for diminishing high-investment costs in broadband network deployment is to
integrate infrastructure mapping and availability prerequisites in broadband network deployment and
civil engineering construction works. Mapping provides a means by which to integrate, classify and
present information about existing infrastructures in a territory where relevant data was not available or
easily accessible from multiple heterogeneous sources and databases. Well designed maps of existing
1
COM (2012) 573
2
http://ec.europa.eu/digital-agenda/
4. 4
infrastructures are easy-to-interpret and constitute concentrated databases of information about the
location, size, type, current use, technology used and ownership of the available infrastructures and
facilities.
This report illustrates the power and utility of a mapping strategy by focusing on its potential to bring
down the set up cost through enhancing sharing and puts forward a series of common policy
approaches and suggested measures to accelerate the establishment of a cadastre or inventory of
existing infrastructures in South East Europe (SEE) areas.
1.2 Siva project
Broadband is the fourth strategic pillar3
of the Digital Agenda for Europe (DAE). The connectivity and
internet access it provides is a key enabler for a number of important services for citizens, businesses
and the public sector. The ambitious and aggressive targets set in the Digital Agenda indicate the
importance of broadband for the economy of the EU and citizen welfare.
The SIVA project supports the goals of EU's strategy on digital technologies (namely the Digital Agenda
for Europe) and aims to contribute to the improvement of virtual accessibility in South East Europe
through the promotion of broadband access, supplementing physical accessibility and thus narrowing
the digital gap in the SEE area.
The ultimate objectives of the SIVA project can be summarized as follows:
The closing of the digital gap through broadband service rollout in South East Europe areas,
where market mechanisms fail to provide adequate level of services or competitive pricing in
the short to mid-term.
The promotion of public and private investments and partnership schemes, the collaboration of
public authorities and scientific institutions in the faster development of broadband networks,
the development of public e-services.
3
Pillar IV: Fast and ultra-fast Internet access https://ec.europa.eu/digital-agenda/en/our-goals/pillar-iv-fast-and-
ultra-fast-internet-access
5. 5
The maximisation of the social & economic potential of the internet and the spread of
innovation, economic growth and improvements in daily life of citizens and businesses through
the provision of fast internet capabilities.
Exploring the potential of infrastructure mapping in the context of SIVA is of particular added value as
progress in this aspect will have a direct impact on bringing down the set up cost through sharing and
hence contribute to the improvement of virtual accessibility in South East Europe.
1.3 Scope and aim of deliverable
This document is the deliverable of Activity 5.3.1 of the SIVA project, which constitutes the first part of
activity 5.3 entitled “Promotion of cost reduction strategies by facilitating the sharing of physical
infrastructures for network deployment in South East Europe”.
In the context of the WP5, which works towards promoting the exchange of experiences, consultation
processes and coordination of strategies and plans related to the development of broadband
infrastructures, this report aims to put forward common policy approaches and suggested measures to
integrate infrastructure mapping and availability prerequisites in network deployment and civil
engineering construction works in SEE areas.
Complementing the technical corresponding work carried out under activity 4.3, this deliverable
provides specific policy recommendations and consensus-building approaches in order to set the basis
for a comprehensive framework that will promote the development of an inventory or cadastre of
telecommunication infrastructures which in turn will be integrated in broadband network rollout so as
to facilitate infrastructure sharing and accelerate broadband investments.
The report is outlined as follows: section 2 provides a policy analysis of the measure of infrastructure
mapping describing the political background as well as identifying sources of values and challenges and
section 3 concludes with the provision of policy recommendations and suggested measures that
national authorities should embrace in order to integrate infrastructure mapping in broadband network
deployment and enhance sharing.
6. 6
2 Infrastructure mapping
2.1 Position Analysis
The ultimate objective of policy recommendations and suggested measures is to provide essential
guidelines towards the promotion of cost reduction strategies through common policy approaches on
facilitating the sharing of physical infrastructures for broadband network deployment in South East
Europe. This section puts forward common policy approaches and suggested measures to integrate
infrastructure mapping and availability prerequisites in network deployment and civil engineering
construction works from a perspective of establishing an appropriate regulatory and policy framework
that will promote the creation of a cadastre of telecom infrastructures which in turn will bring a direct
impact on diminishing the set up cost through sharing and accelerate broadband deployment
investments.
2.2 Problem description
2.2.1 Bridging the digital divide
Despite the acceleration of broadband penetration worldwide, some areas (rural and remote area in
most) have remained underserved for broadband. This can be attributed to the socioeconomic
inequalities, in terms of income, literacy, age, and/or gender and/or to the existence of geographically
remote and/or isolated territories, where the investments in broadband networks do not seem
affordable and commercial business plans remain unfavourable. As a consequence, the population of
such areas cannot enjoy the benefits associated with broadband in terms of economic growth and social
welfare while a crucial divide among population and social groups within the same territory is created.
The digital divide is a phenomenon defined as the gap between individuals, businesses, households and
geographic territories at different social-economic levels as regards their opportunities to have access to
broadband services (OECD, 2001)4
. The accessibility of individuals and businesses to broadband
solutions and services has been a topic of particular interest. Evidence shows that the ability of
4
OECD (2001), “Understanding the digital divide”.
7. 7
individuals and businesses to take advantage of the broadband services varies substantially across the
EU as well as between the EU as a whole and South East Europe as an independent area of particular
interest. According to the SEE Transnational Cooperation Programme, a serious digital gap is quite
evident in terms of telecommunication services and infrastructures between the EU and SEE. SEE
demonstrates on average a number of 154 internet users per 1000 people while the EU figure is more
than double. In the context of SEE area, a heterogeneous diffusion of broadband connections is also
evident among countries of South East Europe as well as between urban and rural areas within the same
territories.
As regards the SIVA countries the problem of low broadband coverage and great disparities becomes
significantly intense for the under-accession SIVA countries. While for EU countries the rates of
broadband coverage is quite high and the disparities appear to be limited, for under-accession countries
the rates are significantly lower while the diffusion within country appears extremely heterogeneous. As
far as the Next Generation Access services are concerned, the deployment of fiber networks for NGA is
still in progress in the SIVA countries. While some countries have already created significant portions of
the necessary infrastructures, others are now beginning the deployment.
A critical aspect of promoting wider broadband use and closing the digital divide is ensuring that the
infrastructure is affordable. Lower cost of broadband infrastructure leads to affordable pricing and
subsequent take-up of services. Affordable pricing in turn encourages the “critical mass” of users, as
well as the services and applications that they might use. Due to the nature of broadband though, the
deployment of infrastructure is both encouraged and at the same time prohibited by the existing
network externalities; without the creation of broadband networks there will be no “critical mass” of
users and without the users, the economic and social benefits of broadband will not be delivered. The
development of broadband networks requires sufficient investments that in many cases cannot be
justified by the existing or even the potential demand. Hence, market by itself often fails to ensure the
affordability of broadband infrastructure deployment in certain territories. These territories run the risk
of enlarging the “digital divide” and become second class markets in the global broadband and
competitiveness order.
8. 8
2.2.2 Cutting the rollout costs of broadband infrastructure
Broadband network rollout processes comprise four main stages: a) commercial and technical planning;
b) applying for rights of way and other permits; c) civil engineering works; and d) connecting end users.
According to estimations of cost distribution per different broadband infrastructure layer, the dominant
part in overall network deployment costs constitute the civil engineering costs or else passive
infrastructure elements which are estimated as high as 80% of the total cost having inter alias a payback
period of 15 years. That makes operators to increasingly investigate opportunities to diminish
broadband network deployment costs in order to invest in the rollout of broadband networks.
Recognising the need and importance of policies and action plans to provide better broadband coverage
and high-speed broadband services, the EU highlights the importance of policies and measures to be
adopted in order to achieve quickly the objectives set in the Digital Agenda for Europe by inter alias
addressing the investment challenge of high-speed broadband infrastructure which is one of the most
critical preventing factors tackling and delaying the implementation of the declared objectives.
The deployment of broadband networks is by default an extremely capital intensive initiative with a high
sunk cost that in most business cases are not justified by the expected revenues, representing thus a
high risk investment. These costs can be attributed to several barriers identified in both the supply and
demand side of the rollout process.
- On the demand-side, the main barriers are the limited demand for broadband services as
compared to conventional internet connections and the relatively high cost of terminals
required for internet access. That becomes more apparent in countries with low household
computer ownership and lack of established digital services to take full advantage of broadband
(e-health, e-government). Hence, the incentive for citizens to pay for high speed internet
connections is very low.
- On the supply side, the development of infrastructure in areas currently underserved (i.e. rural
and scarcely populated areas) is considered very expensive due to the size of the area that must
be covered. The return-on-investment expectations remain low due to the small population and
the number of customers to be served. Furthermore, high deployment costs can be attributed
to inefficiencies related to the utilisation of existing physical infrastructures such as conduits,
9. 9
manholes, ducts, antenna installations etc.; barriers regarding to the co-ordination of civil
engineering works as well as bureaucratic administrative procedures and bottlenecks related to
in-building networks deployment.
Table 2 summarizes the results of a survey conducted in the context of the SIVA project regarding the
barriers for further deployment of broadband infrastructure as reported by the project partners. These
barriers verify the aforementioned assumptions and argumentation for the countries of the SIVA
consortium. More particularly, the survey results verify that the high network deployment cost and the
lack of existing infrastructure are considerable barriers for the development of broadband services in
most of the SIVA countries.
Table 1: Major barriers for the deployment of broadband services in the SIVA countries, Source: SIVA survey on broadband
penetration in SEE (2013)
Barriers5
AT BG FYROM GR IT ME SI
Supply-side
Regulatory issues in general X
Lack of cooperation with local governments,
municipalities
X X X
Lack of exact and concrete National Strategy X
Access to spectrum
Lack of existing infrastructure X X X X X
Network deployment capital cost issues X X X X
Complex procedure (bureaucracy, etc.)
Lack of permits on local level
Lack of suitably skilled people for network
construction, maintenance, operation and training
X
Demand-side
High cost for the subscriber either in terms of up
front or monthly charges for access
X X
Not enough demand to justify infrastructure cost X X X
High cost of user terminals X X X X
5
This table depicts the positive answers of respondents, the barriers that were positively identified as barriers to
broadband access deployment
10. 10
Actions and measures targeting at diminishing the costs and barriers in carrying out new civil
engineering works should contribute to ensure a fast and extensive deployment of high speed
broadband networks while maintaining effective competition.
A great number of studies suggest that substantial cost savings in the deployment of high-speed
broadband networks could be achieved by a more intensive use of existing infrastructures. Such savings
and efficiency gains can be delivered both for fixed and wireless networks by increasing the use of
existing passive infrastructures such as ducts, conduits, masts etc and infrastructures of utility
companies (e.g. water, transport, energy, sewerage) as well as raising transparency on the availability of
existing infrastructures (which infrastructures exist, the location, owner details etc). That is why
infrastructure sharing requires transparent, easily accessible and up-to-date information on existing
infrastructures and details about their availability, their exact location, their ownership and the way they
can be accessed. Such a mapping will be beneficial not only for facilitating infrastructure sharing but also
for other construction works and for environmental purposes. Despite the potential benefits of such a
measure, its adoption seems to lag behind for the countries of South East Europe. In that context, the
SIVA project sets forward common policy approaches and suggested measures to promote the
establishment of an inventory of telecom infrastructures as well as the integration of infrastructure
mapping and availability prerequisites in network deployment and civil engineering construction works.
11. 11
2.3 Political Background
2.3.1 Digital Agenda
Recognising the importance of public interventions in the development of the electronic
communications market, the European Union has undertaken the promotion of a series of measures in
order to frame the European broadband policy. To this end, the European Commission has introduced
the Digital Agenda for Europe as one of its flagship initiatives for Europe 2020 explicitly aiming to
provide all citizens with the capability to access fast internet services by 2013 and ultra-fast internet by
2020. In that context, European authorities have been attempting to advance broadband diffusion and
eliminate the digital gap (especially through specific actions of the fourth pillar of DAE) by:
a) Enhancing market competition,
b) Establishing a consensus on national broadband policies,
c) Improving access to networks and radio spectrum,
d) Providing a number of funding opportunities and financial aid to (public and private) investors,
and
e) Reinforcing the knowledge about the benefits of broadband services.
National authorities of the Member States have the fundamental role to contextualize the actions in
their specific reality, adjust their national legislation and policy frameworks to this central EU strategy,
take action and comply with the directives and recommendations of the European Commission.
2.3.2 EU regulatory framework for electronic communications
The adoption of the EU electronic communications reform package6
in November 2009 paved the way
towards strengthening the European electronic communications market by revising rules to ensure
more effective competition and better rights for consumers.
6
Regulatory framework for electronic communications in the European Union https://ec.europa.eu/digital-
agenda/sites/digital-
agenda/files/Copy%20of%20Regulatory%20Framework%20for%20Electonic%20Communications%202013%20NO
%20CROPS.pdf
12. 12
Much has been accomplished already: the market has become more competitive, generating
investment, innovation and growth in all 27 EU Member States. New communication services have
emerged and EU citizens now benefit from lower prices, better quality and increased transparency.
However, the common rules for the regulation of electronic communications networks and services are
being implemented in the Member States with different degrees of effectiveness. As a result, many
operators and citizens still perceive Europe as being a patchwork of different regulatory regimes. More
efforts are therefore still needed to move towards a single market for electronic communications.
The revised EU framework constitutes the basis for a supportive and consistent regulatory environment
targeting remaining challenges. They reinforce competition while enhancing incentives to invest. New
provisions on freeing radio spectrum will improve the availability of new wireless services, including
wireless broadband, at reasonable costs. The new body of European regulators (BEREC) will improve
cooperation between national regulators and the European Commission. This will lead to the creation of
a common "regulatory culture", to more consistency, and to a real single market for electronic
communications networks and services.
2.3.3 NGA recommendation
The regulation of access to Next Generation Access Networks (NGA) constitutes a crucial step towards
achieving the goal of the Digital Agenda. This Recommendation therefore defines a common regulatory
approach as regards access to the new very fast broadband networks using optical fibre, to offer a
balance between encouraging investment and maintaining competition. 7
2.3.3.1 Cost reduction for deploying broadband networks
Deployment of high-speed broadband networks is subject to various inefficiencies and bottlenecks
which lead to high costs for undertakings wishing to deploy networks, especially in rural areas. The
7
Next Generation Access Networks (NGA),
http://europa.eu/legislation_summaries/information_society/strategies/si0018_en.htm
13. 13
dominant cost (up to 80%) in deploying new networks is linked to civil engineering works. Therefore it is
necessary to adopt measures tackling these inefficiencies and to bring down the civil engineering costs
in order to incentivise infrastructure rollout.
The Commission intends to work on the adoption of the regulation8
aimed at tackling:
1. Inefficiencies or bottlenecks concerning the use of existing physical infrastructure (such as, for
example, ducts, conduits, manholes, cabinets, poles, masts, antennae, towers and other
supporting constructions);
2. Bottlenecks related to co-deployment;
3. Inefficiencies regarding administrative permit granting; and
4. Bottlenecks concerning in-building deployment.
In practical terms, thanks to the regulation the owners of all infrastructures, e.g. electricity, gas, water,
sewage, suitable to host electronic communications network elements will need to coordinate their
works. Local authorities will need to issue fewer permits. The implementation of proposed measures is
expected to incentivise rollout and facilitate investments by decreasing the associated costs by up to 30
%. It is estimated that the total amount to be saved on deployment could reach over € 60 billion.
Towards this direction, the measure of infrastructure mapping aims at increasing efficiency in the use of
existing infrastructures and at reducing costs and obstacles in carrying out new civil engineering works.
Even if the regulation does neither require Member States to undertake such a mapping exercise nor
require the data to be aggregated or stored at a point of single contact, it imposes Member States to
'make available' the information collected by public sector bodies at a single information point, via
hyperlinks to other locations. Moreover, the proposal does not impose any general obligation of pre-
notification of planned civil works. In that case, it rather enables electronic communications providers to
require this information from network providers, in view of deploying high-speed electronic
communications networks.
8
Digital Agenda for Europe, Action 117: Reduction of the cost of deploying high speed electronic communication
networks http://ec.europa.eu/digital-agenda/en/pillar-iv-fast-and-ultra-fast-internet-access/action-117-reduction-
cost-deploying-high-speed
14. 14
2.3.3.2 Universal Service Directive
The European Union intends to ensure the availability of a minimum set of high-quality services that are
available to all users at an affordable price, without distortion of competition. It therefore lays down
obligations with regard to the provision of certain mandatory services, such as the retail provision of
leased lines. It also establishes end-users' rights and the corresponding obligations of undertakings that
provide publicly available electronic communications networks and services.
Directive 2002/22/EC9 10
defines universal service as the “minimum set of services of specified quality to
which all end-users have access, at an affordable price in the light of specific national conditions,
without distorting competition”. Representative provisions of the Directive follow.
Availability of the universal service
Member States must ensure that the electronic communications services detailed in the Directive are
made available to all users in their territory, regardless of their geographical location, at a specified
quality level and an affordable price.
Provision of access at a fixed location and telephone services
A fundamental requirement of universal service is to provide users on request with a connection to the
public telephone network at a fixed location and at an affordable price. The connection provided shall
enable end-users to take charge of voice communications, facsimile communications and data
communications, at data rates that are sufficient to permit functional Internet access, the provision of
which may be restricted by Member States to the end-user's primary residence. There should be no
constraints on the technical means by which the connection is provided.
Affordability of tariffs
The Member States shall ensure that consumers with low incomes have access to special tariff
arrangements or are given special assistance to enable them to have access to the network and to use it.
The special tariffs must either be provided by the designated undertaking, or already be available on the
9
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2002:108:0051:0051:EN:PDF
10
http://europa.eu/legislation_summaries/information_society/legislative_framework/l24108h_en.htm
15. 15
market. Furthermore, the Member States may require undertakings which have universal service
obligations to comply with price caps or to apply common tariffs, including geographical averaging,
throughout the national territory.
Quality of service
The national regulatory authorities must set performance targets for undertakings with universal service
obligations and monitor compliance with these targets by designated undertakings.
Financing of universal service obligations
In order to compensate for the net costs to which the provision of universal service might give rise,
compensation mechanisms for operators with universal service obligations may be provided for. This
may involve the introduction of a mechanism to compensate from public funds and/or a mechanism to
share costs between providers of electronic communications networks and services.
2.3.4 Regulatory measures to promote competition and enhance the broadband
investment environment
On 12 July 2012 Neelie Kroes, the European Commission Vice-President and European Commissioner for
Digital Agenda, announced a new policy package11
to create the legal predictability that investors are
asking for against the current overall economic situation in Europe and the substantial roll-out costs of
high speed internet. The Commission is preparing a Recommendation on consistent non-discrimination
obligations and costing methodologies to promote competition and enhance the broadband investment
environment.
The EU Recommendation on consistent non-discrimination obligations and costing methodologies which
implements this policy has been published at the end of 2012. There is no evidence that it has been
already incorporated in national legislations. It does have the approval of BEREC though, the Body of
European Regulators for Electronic Communications which represent the national regulatory authorities.
11
Digital Agenda for Europe, Actions 113 and 114: Regulatory measures to promote competition and enhance the
broadband investment environment, http://ec.europa.eu/digital-agenda/en/pillar-iv-fast-and-ultra-fast-internet-
access/actions-113-and-114-regulatory-measures-promote
16. 16
2.3.5 National broadband plans
The Commission highlighted the importance of all Member States deploying an operational broadband
plan with defined national targets aligned on European broadband targets, as well as a balanced set of
policy measures to incentivise investment in fast and ultra-fast internet. The Digital Agenda for Europe
(DAE) called on all Member States to devise and make operational by 2012 national broadband plans
which meet the level of ambition of the broadband targets set out in Europe 2020.
Today, almost all Member States have developed a national broadband strategy setting explicit
broadband targets and timelines. However, there are significant variations in the targets set by each
Member State as a result of the different starting points. Most of them focus on achieving full coverage
for basic levels of broadband (i.e. adequate for email, routine surfing and administrative services) setting
a corresponding quantitative target. Very few of them set clear operational measures to achieve:
Real competition among broadband providers that would lead to affordable prices for
consumers; and
The roll-out of high-speed internet, both in terms of timing and funding.
As regards the next generation access, approaches to ultra-fast networks vary more widely than basic
broadband targets. Member States can be clustered into different groups of countries: countries, whose
primary objective is the basic broadband coverage, those countries with full coverage of basic
broadband which seek a gradual upgrade to speeds between 30 and 100 Mbps and those countries with
highly-developed networks which target at the full transition to NGA.
Developing comprehensive national broadband strategies will stimulate investment in fast internet
access beyond current market levels. Ultra-fast internet will enable new services based on higher
bandwidth needs to become available on a daily basis.
17. 17
In March 2012, the Commission presented a Staff Working Document12
on national broadband plans.
This summarised that state of play and provides a reference point to assist and co-ordinate national
planning.
12
http://ec.europa.eu/information_society/newsroom/cf/itemdetail.cfm?item_id=7948
18. 18
2.4 Rationale for recommendations
Measures to accelerate investment is a key to bridging the gap between the amount that telecom
operators, or other interested parties, plan to invest in network infrastructure deployment and the
investments required for achieving the DAE broadband targets and closing the digital divide. The
economic rationale behind actions to facilitate investment is to diminish investment costs. From the
perspective of private investors, this will bring about an increased number of sustainable broadband
projects, while simultaneously optimising the use of existing economic resources.
In that context, the reuse of existing physical infrastructures can diminish the capital investments costs
for broadband network deployment. It is estimated that the construction of passive infrastructure
accounts for around 80% of total fixed investment costs and reduction efforts should focus on this major
cost driver. Civil engineering costs (i.e. trenching or digging) can be significantly reduced through a
proper coordination by national, regional and local authorities, using town planning rules and remedies
mandating access to passive infrastructures. Wireless infrastructure costs can similarly be reduced by
such measures. Diminishing this cost removes an important barrier and brings a significant and positive
impact on the economic viability of the broadband network deployments.
As regards sharing, the mandate access to physical infrastructures refers to the obligation of the holders
of the rights to install facilities on, over, or under public or private property and to open up such
infrastructures for access to interested operators under reasonable and non-discriminatory conditions.
Infrastructure sharing means exploiting infrastructure built for other purposes, such as laying fibre in
sewers, ducts for electric cabling or for road traffic surveillance, attaching fibre to the rails of railway
lines or using rooftops of public buildings or masts and poles of electricity distribution networks for the
installation of aerials. Such a measure will result in avoiding the costly and lengthy broadband
infrastructure construction process as it will promote the use of already or simultaneously deployed
infrastructure in order to roll out their networks cheaper and faster. However, infrastructure sharing
faces significant bottlenecks and barriers that tackle the efficient use of existing infrastructure and
prevent the broadband rollout in SEE areas. Table 2 summarises the main barriers associated with the
sharing of infrastructures and sets forward relevant remedies.
19. 19
Table 2: Bottlenecks and barriers to more efficient use of existing infrastructure
Bottleneck / Barrier Remedy
1. Limited transparency concerning the available
existing physical infrastructure suitable for broadband
network deployment
Obligation to provide information and details about
existing physical infrastructures suitable for broadband
network deployment. Mechanisms and tools to ensure
availability of such infrastructure and facilitate access to
relevant information
2. Lack of legal and regulatory basis / institutional
framework
Establishment of a institutional framework that will
regulate the process of infrastructure sharing by
determining the scope of entities to be obliged to share
infrastructure and the scope of infrastructure to be
mandated for sharing
3. Commercial issues Introduction of a pricing scheme that will provide the
right incentives for incumbents to allow access to their
infrastructures and stimulate business interest for
investments in broadband rollout
4. Technical infeasibility List of reasons for refusal of sharing as well as definition
of technical infeasibility
5. Administrative issues Limit the complexity of the planning-to-implementation
process and configure the planning process
A critical first step in supporting infrastructure sharing is to set up a civil infrastructure mapping, that is,
a register of existing civil infrastructure which can be used in broadband network roll-out. Development
of cadastres or inventories containing information about the existing infrastructures as well as details
about the location, the size, the infrastructure type, the current use and the ownership seems a critical
measure to address the issue of limited transparency as regards the suitability and availability of
infrastructures for broadband deployment.
Mapping of existing telecom infrastructures refers to the detailed, geo-referenced and structures
gathering, processing and visualisation of telecommunication infrastructure (points and lines of TC-
infrastructure as well as of relevant physical infrastructures such as ducts, buildings, inspection
chambers masts, manholes and cabinets) for the purposes of the accommodation, setting up and
removal, and maintenance of electronic communications transmission systems, equipment and
resources.
20. 20
Mapping telecom infrastructures in an inventory or cadastre will enable to:
a) Create insights into the current state of broadband availability by conducting spatial analysis on
amount, length and nature of infrastructures in an area or region. Relevant data can be used to
determine the broadband service availability;
b) Coordinate broadband deployment measures and projects resulting in the allocation of funds to
areas without sufficient infrastructure; and
c) Reduce investment costs of broadband deployment by publishing existing infrastructure that
can be utilised for further broadband deployment.
A centralised mapping of both active and passive physical infrastructures is also associated with a series
of financial implications which could result in a great reduction of the broadband deployment costs in
SEE countries. The benefits of the creation of a cadastre of telecommunications can be summarized as
follows:
1. A detailed mapping of infrastructures can be used as an instrument for strategic planning and
policy. More particularly, a cadastre of infrastructures can be a strategic device for planning and
implementing urban and regional development, plotting military strategy as regards telecom
self-efficiency and legally contesting land ownership and use. Maps can be employed in the
national broadband plans in monitoring and addressing inequalities, the so-called digital divide
between areas and regions within the same territory, providing clear directions where
broadband deployment investments should be accelerated. In other words, an accurate
mapping of areas served by next generation networks (NGN) will enable authorities to identify
the disadvantaged areas and take measures to reduce the Digital Divide.
2. The major benefit of implementing a centralized mapping of existing physical infrastructures is
that such a measure can act as an enabler of passive infrastructure sharing. That would
definitely lead to substantially lower deployment costs as well as to increased broadband and
NGA coverage. The knowledge of the current and future network configuration will enable
potential operators as well as public authorities to design their broadband deployment
investments in such a way so as to optimize the use of resources.
21. 21
3. Engineers will reduce the risk of redesigns and claims by knowing the location of all
infrastructures before the beginning of design. Alike, investors will minimise the risk of costly
damages and change orders when they have been given all of the infrastructure information
they need to complete the evaluation of the broadband network deployment project while
contractors will stay on schedule and under budget on projects where infrastructure mapping is
provided.
4. The cadastre of telecommunications appears to have the potential of diminishing the
bureaucratic and administrative barriers related to the planning process. The creation of a single
information point containing all relevant network information (such as the location, the size, the
type of infrastructure, the current use as well as the owner and legal details) will have a positive
impact on the administrative burdens faced by operators and infrastructure providers when
planning civil engineering works. It will enable new public sector networks and new network
operators to reduce the amount of time spent collecting and analyzing data before deciding on
an installation path.
5. Experience suggests that such a cadastre will result in less damage caused to existing
infrastructures, such as cables and pipelines, when civil works are in progress. Operators will
know where the infrastructure is located and the likelihood of damages during digging or
trenching will be limited.
The benefits of adopting a central mapping of existing infrastructures for SEE countries are also
illustrated in various similar projects implemented in other European countries. In the Flanders region of
Belgium, AGIV13 has developed a database called KLIP that provides information about all passive
infrastructure in the region as well as details about the owners and the availability of their
infrastructures. The system has managed to significantly enhance infrastructure sharing, diminish
deployment costs and increase broadband coverage. AGIV estimates that the system saves the
authorities and the operators EUR29.5 million14
per year in administrative and planning expenses while
the incidents of existing infrastructure being damaged declined annually by 5%. Similarly, Portugal’s CIS
portal is a centralized infrastructure cadastre which uses red, amber and green lights to indicate spare
capacity in the incumbent’s ducts. All organizations (local authorities, utility companies and telecom
13
Agentscahp voor Geografische Informatie Vlaanderen (www.agiv.be)
14
http://www.agiv.be/gis/organisatie/?artid=587
22. 22
companies) that may own relevant infrastructures are obliged to provide and regularly update
information concerning their infrastructures. The system has boosted the sharing of the existing
facilities, yielding a cost reduction in infrastructure deployment of 20%-30%. Table 3 summarises best
practices in passive infrastructure mapping in selected European countries.
Table 3: Examples of Passive Infrastructure Mapping (Source: European Commission, 201215 and World Bank, 201416)
Country Description
Germany In 2009, the German Federal Network Agency
introduced the Infrastrukturatlas programme to map
the existing infrastructure that can be utilised for NGA
network deployment. The atlas covered wired and
wireless telecom infrastructure, transport networks and
other infrastructures such as utilities, antenna sites,
windmills etc while the data was collected from the
infrastructure owners themselves.
Belgium In 2009, the Geographic Information System (GIS)
framework, which was a geographical database of
environmental and human factors covering the Flanders
region of Belgium, was updated with the spatial
infrastructure data programme. This consisted of three
decrees one of which was a portal of cables and
conduits (KLIP).
United Kingdom The National Joint Utilities Group (NJUG) is a UK
organisation that aims to promote best practice for
public street civil works. One initiative of the NJUG is to
map existing underground assets to create an
infrastructure atlas for the UK. In addition to the
estimated 1 million kilometres of gas and water mains
and sewers, and 500 000 kilometres of electricity
cables, NJUG believes there are 2 million kilometres of
telecoms cabling, all of which it wishes to map.
15
European Commission (2012), “Support for the preparation of an impact assessment to accompany an EU
initiative on reducing the costs of high‐speed broadband infrastructure deployment”.
16
Gelvanovska et al., (2014), “Broadband Networks in the Middle East and North Africa - Accelerating High-Speed
Internet Access”, World Bank.
23. 23
Country Description
Netherlands The Kadaster (Land Registry) is responsible for
maintaining the register of cables and infrastructure in
the Netherlands, using the KLIC portal. Although not a
map as such, this database contains the locations of
active infrastructure. Any organisation that wishes to
undertake excavation work is mandated by law to check
the system to see which operators are active in the area
in question.
Poland The Information Broadband Infrastructure System (SIIS)
was launched by the office of electronic
telecommunications to promote the development of
broadband networks. Polish operators are mandated to
provide detailed information about the entire deployed
telecom infrastructure in the system. The inventory
maps the location of telecom hubs, transmission
systems, collocation buildings, points of contact
between public telecom networks as well as the route
of backbone and distribution telecom networks.
Portugal ANACOM, the Portuguese NRA, decided in 2009 to
implement the Centralized Information System (CIS), a
central infrastructure atlas aimed at reducing the cost
of deploying new electronic communications
equipment. Providing and regularly updating
information is mandatory for all organizations that own
or operate infrastructure suitable for accommodating
electronic communication infrastructure (including
roads, railways, water, and gas infrastructure).
Challenges
Infrastructure mapping is a complex undertaking with several difficulties and challenges that need to be
overcome. The issues and challenges associated with the creation of a cadastre of existing
infrastructures can be summarised as follows:
- A detailed mapping of infrastructure requires synergies and compatibility with other existing
cadastres such as the cadastre of land and buildings and the cadastre of roads. In that context,
administrative burdens must be overcome allowing the provision of the data and enabling rapid
cooperation with relevant authorities.
24. 24
- Data acquisition is of critical importance. Possible solutions are to collect data via ground
surveys that would be prohibitively expensive or to be acquired by authorities,
telecommunications companies, infrastructure owners, operators and utility companies.
However the high resolution infrastructure data related to sensitive company details will require
high confidentiality requirements while the low willingness of companies to supply data will
require legal provisions and obligations. In that context, it seems crucial to determine how much
information is already known and whether there are other overlapping mapping projects in
place
- Issues related to accessibility and user rights to data are considered of high importance. The
question arisen is who is allowed to request information from the cadastre. In that context, high
resolution infrastructure data will require control mechanisms such as restricted access to data,
contractual agreements with data users, restriction of access to a dedicated area etc.
- Legal issues related to the regulatory framework surrounding the procedure of gathering the
information of existing infrastructures including the conduct of ground surveys and the
obligation of telecommunication companies and owners of infrastructures to provide details
about the location, the size, the infrastructure type, the current use and the ownership of their
facilities.
- Given the general economic climate in SEE that does not encourage the implementation of
public investments, a critical financial challenge arises prompting national authorities to
investigate alternative funding schemes for setting forward the creation of the cadastre.
25. 25
3 Common policy processes and suggested measures
The SIVA Consortium wishes to integrate infrastructure mapping and availability prerequisites in
network deployment and civil engineering construction works so as to bring down the set up cost
through sharing and requests further actions for the accomplishment of this effort. Thus, this section
provides some general principles that policy makers and national authorities of the SEE area should
embrace in their efforts to support and promote the mapping of existing infrastructures. The common
policy processes and suggested measures have been grouped under four categories that emphasize the
approach that should be embraced towards the integration of infrastructure mapping in broadband
deployment: a) governance and strategic planning; b) legal and regulatory framework; c) approaches to
finance; and d) human resources.
3.1 Governance and strategic planning
- Commence due diligence and develop a comprehensive feasibility study so as to lay the ground
for a roadmap towards the establishment of the cadastre of existing infrastructures. The
feasibility study should evaluate and analyse the potential of the construction of the cadastre
and be based on extensive investigation and research to support the process of decision making.
- Step up efforts to limit the length and the complexity of the planning-to-implementation
process. Determine procedures, obtain approvals and secure rights of way at an initial stage.
- Configure the planning process in order to confront the delays that may arise because of the
complexity of the administrative processes, the bureaucracy as well as the great number of
various levels of government and public bodies involved in the implementation of the measure.
Possible policy solutions would be to a) simplify such arrangements by redistributing decision-
making powers among different players of public administration and b) accelerate the
procedures by creating a cross-functional team to identify relevant stakeholders and ensure the
involvement and to develop synergies with other existing cadastres.
- Ensure the involvement of a broader range of stakeholders in the process of needs assessment,
prioritisation, design, planning and delivery of the cadastre. Broadband infrastructures embody
both public and private implications, with the latter moving increasingly to the fore as the role
of the private sector in infrastructure provision expands. What is more, in the wake of shifting
26. 26
patterns of urban and rural settlement, infrastructure projects are affecting many more assets,
especially in already densely inhabited residential areas.
- Use a two-phase approach to create the cadastre of telecom infrastructures. The first stage
should contain the gathering of information related to existing passive infrastructures and
broadband facilities by requesting the information from the owners while in the second phase
details about the shareability of each duct will be collected by conducting a ground survey. The
advantage of the first approach is that infrastructure mapping can be implemented fairly quickly
and at reasonable cost while the second one requires to survey areas which is very costly. In
such a case, national authorities should conduct a cost-benefit analysis to determine the
financial implications of these approaches as well as their feasibility.
- Set forward a common management system for infrastructure data. Develop synergies with
other cadastres so as to create a harmonised centralised data management platform addressing
inter alia the unnecessary procuring and processing of data from multiple heterogeneous
sources.
- Commit resources to spread knowledge among elected representatives about the potential and
the benefits associated with the mapping of infrastructures in terms of economic growth and
social welfare with the aim to mobilise them and accelerate the decision making process.
- Communicate the opportunities arisen with the development of the cadastre of existing
infrastructures in terms of infrastructure sharing to stakeholders and interested parties.
- - Strengthen international co-operation to improve the efficiency and reliability of the measure
and encourage the exchange of best practices at the national/regional/local level.
3.2 Legal and regulatory framework
- Examine and determine the legal and regulatory framework conditions with a view to
encouraging the provision and access to the sensitive infrastructure data. High resolution
infrastructure data and sensitive company information pose high confidentiality requirements.
As a result, special care should be given to defining what type of data will be provisioned, how
information will be acquired and maintained, when and under what circumstances
confidentiality will be maintained and any reasonably anticipated risk associated with the
inappropriate disclosure of data.
27. 27
- Develop specific control mechanisms dealing with issues of access to high resolution data. Such
control mechanisms could be contractual agreements with data users; involvement of data
suppliers and contractual agreements for data use; restricted access to data; restriction of
access to a dedicated area and generalisation of information.
- Adopt provisions that oblige owners of physical infrastructures, who may be unwilling to
participate, to supply the necessary infrastructure details (location, size, infrastructure type,
current use, technology used and ownership) in the cadastre for the telecom infrastructures.
Create and establish necessary enforcement tools to ensure compliance and define penalties for
non-compliance.
3.3 Approaches to finance
- Explore the funding possibilities offered by the EU. As the allocation of public resources may be
hampered by strict national budgets and austerity policies, national authorities should
investigate additional financing in the funding opportunities provided by the EU and more
especially in the context of financial instruments for broadband support (e.g. EU Structural
Funds, Connecting Europe Facility etc.). Co-financing through state aid and grant from the EU
could possibly aid to overcome the resistances caused by the limited financial resources and
hence, accelerate the procedures towards the establishment of the cadastre. The acceleration
of the mechanism of funding as well as the speeding up of the relevant bureaucratic procedures
is considered critical in order to avoid unnecessary delays.
- Encourage public-private partnerships as a mean for raising additional financing or as an
alternative funding scheme. This is why the private sector is involved in the provision and
operation of physical infrastructure and broadband facilities. Apart from providing information
in cases where private companies own existing passive infrastructures, the private sector could
contribute to the financing of such a measure aiming at utilising the investment opportunities
that the mapping and sharing of infrastructures will bring to the forefront.
28. 28
3.4 Human resources
- Commit resources to build up technical knowledge among public officers on issues related to
the procedures of the cadastre of existing infrastructures. The creation of the cadastre will
require staff with significant expertise in the field to ensure that the final outcome will meet the
needs and requirements of national authorities. Hence, apart from the engagement of external
experts, staff of all government levels and public bodies involved in the procedure of mapping
need to be trained on the necessary concepts and details in order to facilitate the process of
collecting the necessary details from the owners, conducting the ground survey and
incorporating evidence into the system.