2010/11 upgrades to the NITA LRAIC model

Transcription

1 . Documentation for NITA 2010/11 upgrades to the NITA LRAIC model Data request to TDC 16 June 2010 Ref: a

2 Contents 1 Introduction Timeline Provision of data Granularity of information Priority of information Treatment of confidential data Structure of this document 3 2 Demand (part 1 data) Lines Traffic volumes 5 3 Cable TV network (part 1 data) Cable TV network design rules Network sizing 11 4 Fibre network (part 1 data) Fibre network design rules Network sizing 18 5 Cost-related data (part 2 data) Bottom-up equipment unit costs Top-down expenditure data Asset lifetimes 24 6 Co-location services (part 2 data) 25 7 Data related to the pure LRIC approach (part 2 data) 26 8 Questions 27 Annex A: Indicative asset lists

3 2010/11 upgrades to the NITA LRAIC model Copyright Analysys Mason Limited has produced the information contained herein for the National IT and Telecom Agency (NITA). The ownership, use and disclosure of this information are subject to the Commercial Terms contained in the contract between Analysys Mason Limited and NITA. Analysys Mason Limited St Giles Court 24 Castle Street Cambridge CB3 0AJ UK Tel: +44 (0) Fax: +44 (0) Registered in England No

4 2010/11 upgrades to the NITA LRAIC model 1 1 Introduction Analysys Mason Limited (Analysys Mason) has been commissioned by the National IT and Telecom Agency (NITA) to assist in the upgrade of the existing long-run average incremental cost (LRAIC) model to include both cable TV and fibre networks. We have also been commissioned to implement a pure LRIC calculation for voice termination, consistent with the EC recommendation, though the use of such a result remains a decision for NITA in its market review. The upgraded model will be used to regulate prices for certain wholesale services on TDC s wireline networks (including voice termination and bitstream access) in Denmark. Analysys Mason and NITA have agreed an approach to upgrade the model, which will be used by NITA to inform pricing decisions in the future. It is worth noting that no final decisions have been made on the regulation of the wholesale products within the fibre network. Accordingly, the modelling is purely for the purpose of gaining additional understanding of the costs of these services. The agreed approach presents industry participants with the opportunity to contribute to all aspects of this upgrade of the LRAIC model. This document comprises the data request for TDC. All responses to the issued data requests will be considered as part of the upgrade. 1.1 Timeline An overview of the timeline for the four phases of the LRAIC model upgrades is shown below. May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar 1: Model specification Industry workshop Industry consultation Issue data request Finalise specification 2: Model preparation Data collection Industry meetings Construction of upgrades 3: Model consultation Consultation of draft model Review comments and revise model Consultation of revised materials 4: Price determination Review comments and finalise materials Project completion Yellow bars indicate phases with industry involvement; red bars indicate where Analysys Mason issue materials to industry parties Figure 1.1: Project timeline [Source: Analysys Mason]

5 2010/11 upgrades to the NITA LRAIC model 2 Industry participants are invited to contribute to three of the four phases: Model specification (in Phase 1) Model preparation, specifically data collection (in Phase 2) Model consultation (in Phase 3). This document relates to the second of these phases and is intended for TDC. Separate data requests has been written for other industry parties. From fixed termination providers other than TDC, we will be seeking information on network topology and demand volumes, so as to understand what an alternative hypothetical core network in Denmark could look like. From all industry parties other than TDC, we will be seeking information on aspects such as unit cost data and how cable TV/fibre networks could be deployed in Denmark. A period of thirteen weeks has been scheduled for operators to collate their responses. The project plan agreed between Analysys Mason and NITA specifies the following data collection timing: 16 June 2010: data requests issued 13 August 2010: deadline for submissions of demand/network data ( part 1 data ) 10 September 2010: deadline for submission of cost data by operators ( part 2 data ). In addition, we are planning to be present in Denmark during the weeks commencing 28 June 2010 and 16 August 2010 to allow operators to discuss the various sections of the data request with NITA and Analysys Mason. 1.2 Provision of data Please provide data relating to the calendar year 2009 or calendar year-end figures for If possible, we would prefer to receive data in English, with data provided in Microsoft Word, PowerPoint or Excel format. We may be able to use data in some other formats, such as Microsoft Access. In such cases, please contact us to see if we can determine if the format is compatible or if it can be converted into an alternative format. Please provide cost information in DKK, in nominal terms (i.e. money of that day) rather than transformed into real-terms money of a particular year. 1.3 Granularity of information Please indicate if any particular data points are estimates as opposed to known parameters, and explain briefly the basis on which the estimate was derived. We have suggested a top-down categorisation of costs to provide guidance on the level of granularity we are anticipating. If this categorisation is not readily applicable, then please provide data in an alternative categorisation and explain the alternative categorisation that you have used.

6 2010/11 upgrades to the NITA LRAIC model Priority of information We have prioritised the information requested in each section of the data request, in terms of which is most important to the accurate development of the model upgrades. Operators should focus on highest priority information, before spending effort on lower priority data. Extra-high priority items are labelled [PRIORITY ONE] and are of the greatest importance for the LRAIC model. High priority data items are labelled [Priority Two]. Other items are labelled [Priority Three]. 1.5 Treatment of confidential data Data provided will be of importance for the calibration and reconciliation of the upgraded LRAIC model, in order to ensure that our bottom-up calculations are generating reasonable asset volumes and costs. However, there may be certain data-points that could be used in the actual model itself as inputs. We recognise that this must of course be subject to confidentiality considerations. The objective of the model is to be transparent and shareable between industry parties. We expect that some data (more likely to be for calibration) will not be released in the public model. However certain data-points, which could be beneficial to the model, could be processed to remove commercial sensitivities, through the following approaches: aggregating the data across either groups of areas or the whole of Denmark using averaged input values between multiple sources. We would need to agree an appropriate approach on a case-by-case basis as we identify data that could be of benefit to the model. 1.6 Structure of this document The remainder of this document is set out as follows: Section 2 sets out questions related to demand (part 1 data) Section 3 sets out questions related to cable TV network data (part 1 data) Section 4 sets out questions related to fibre network data (part 1 data) Section 5 sets out questions related to cost data (part 2 data) Section 6 sets out questions related to co-location services (part 2 data) Section 7 sets out questions related to the pure LRIC approach (part 2 data) Section 8 sets out the process for industry parties to make enquiries regarding this project.

7 2010/11 upgrades to the NITA LRAIC model 4 2 Demand (part 1 data) In order to dimension the cable TV and fibre networks appropriately in the LRAIC model, Analysys Mason will need to have an understanding of the current demands being made of those networks. The two aspects that are of relevance here are: service (line / traffic) volumes network loading parameters. The proposed services to be modelled include: End-user access lines Voice subscriptions Broadband subscriptions TV subscriptions Voice minutes Broadband traffic Analogue TV Digital TV HDTV VoD. Analysys Mason will need to understand the usage of your networks. Where you do not provide a specific service, please ignore that part of the question. 2.1 Lines Please provide the following data if available. Please split by geographic area (if geographicallyspecific data is readily available): Q01 [PRIORITY ONE] Cable TV end-user access lines, separately identifying those lines with subscriptions (or combinations of subscriptions) as shown below in Figure 2.1.

8 2010/11 upgrades to the NITA LRAIC model 5 Analogue TV only Digital TV only, no HDTV Digital TV only, with HDTV VoD only Broadband only Voice only Analogue TV and broadband Digital TV (no HDTV) and broadband Digital TV (with HDTV) and broadband VoD and broadband Analogue TV and voice Digital TV (no HDTV) and voice Digital TV (with HDTV) and voice VoD and voice Analogue TV, broadband and voice Digital TV (no HDTV), broadband and voice Digital TV (with HDTV), broadband and voice VoD, broadband and voice Other combination (please specify in each case) No subscription Figure 2.1: Subscriptions on a single line [Source: Analysys Mason] Q02 [PRIORITY ONE] TDC Fibrenet end-user access lines, separately identifying those lines with subscriptions (or combinations of subscriptions) as shown above in Figure Traffic volumes Please provide the following data if available. Please split by geographic area (if geographicallyspecific data is readily available). In each case, please provide separate volumes for: Traffic conveyed on the cable TV network Traffic conveyed on TDC Fibrenet. Q03 Q04 [PRIORITY ONE] Total annual voice traffic, in minutes and number of calls [PRIORITY ONE] Peak broadband end-user traffic in Mbit/s.

9 2010/11 upgrades to the NITA LRAIC model 6 3 Cable TV network (part 1 data) In order to understand your cable TV network, Analysys Mason will need to understand both the network assets that are used and the manner in which these assets are deployed. We note that TDC do provide some detail in their public Kogebogen 1. For instance, an overview of the HFC network is provided in this document, as illustrated below in Figure 3.1. Programme receiver Secondary access network Head-end MPEG station Distribution point L3 router CMTS Combiner DHCP / ToD / TFTP Internet Optical amplifier KEY Digital coded transmission Broadband fibre network Coaxial cable Fibre connectors TDC-owned infrastructure Privately-owned infrastructure Optical amplifier Delivery point for privately-owned systems Optical amplifier Primary access network Secondary access network Local distribution network Figure 3.1: Architecture for the cable TV network [Source: TDC] 3.1 Cable TV network design rules Analysys Mason needs to dimension an efficient, forward-looking cable TV network that is applicable to Denmark. In order to aid this process, an understanding of how current networks are planned and deployed would be useful. This section covers: Overview of modern solutions Trench and cabling Customer connections 1 Yousee, Krav til anlægsopbygning af kabel-tv anlæg hos YouSee A/S Kogebogen (Version 1.4, July 2009). See URL: x

10 2010/11 upgrades to the NITA LRAIC model 7 Access nodes Other network elements. Overview of modern solutions Q05 [PRIORITY ONE] What architecture/technical solutions are considered to be your modern efficient cable TV deployments? If the most efficient solution varies by geography, then please describe this variation, summarising the solution in each case. Please provide network diagrams if appropriate and it makes responding easier. In particular, for each solution, can you describe the a. Cabling structure in your primary network. For example, are discrete cables deployed between the MPEG stations and the primært accespunkt? Do you consider fibre from the MPEG station to the primært accespunkt to be the modern efficient solution? If not, what is the basis of the decision for deploying fibre versus coax? b. How many homes passed by the primært accespunkt do you design for? c. How many amplifiers is the maximum in an efficient deployment? Do you consider fibre to the last amplifier to be efficient? d. Cabling/amplifier structure in your secondary network. Is there any structure in the coax distribution network (e.g. are the amplifiers in a daisy chain, or a different layout)? Q06 [Priority Two] Can TDC describe what upgrades they plan to make to the cable TV network in the short to medium term (this could include DOCSIS upgrades, capacity upgrades etc.) Trench and cabling The digging of trenches and the laying of cables forms a large part of the costs in an access network, and so it is important to understand their specific dimensioning in the Danish context. The cost of civil works for digging trenches and laying duct for cable will vary depending on the terrain. We would appreciate your insight on the variation in the costs of burying cable or duct in different terrain and the extent to which the different terrain types are encountered in Denmark. It is likely that different types of duct are used, both in terms of cross-sectional diameter and in resilience, depending on the cabling that it needs to house and the level of protection that is required respectively.

11 2010/11 upgrades to the NITA LRAIC model 8 Q07 [Priority Two] Can you explain your classification of Danish terrain for planning civil works for digging trenches and laying duct for cable? Can you outline the proportion of the access network, which is in each terrain type? Q08 [PRIORITY ONE] For different terrains, what are the requirements for duct/cable? In particular: a. Do different terrain types require specific deployment solutions? b. Can you describe how the cable armature (protective covering) varies with deployment i.e. what are the differences between the cable sheath deployed in ducts and those buried directly? c. What is the difference in unit cost per metre for laying cable in each terrain class (refer to Section 5)? Q09 [PRIORITY ONE] What proportion of your cabling infrastructure is put in ducts, or buried directly? Can you provide any data for this proportion on a regional basis (e.g. asset volumes by MPEG station area, or the most granular geographic region that is readily available)? Q10 [PRIORITY ONE] Are there standard cable sizes for the various links in the network? For example, what is the standard cable type in the network layer from the: a. End-user to the last amplifier b. Between amplifiers c. From the primært accespunkt to the MPEG station (e.g. fibres per cable)? Q11 [Priority Two] Can you outline the architecture you use for the final drop cable to the premise in the cable TV network? Please provide diagrams if it makes responding easier. Q12 [Priority Two] On what basis do you deploy trench along streets: along one side, both sides, down the centre of the road? Does this vary by geography: if so, why and on what basis? Q13 [Priority Two] Can you specify how future demand is accounted for in current deployments (e.g. spare capacity in ducting or cabling at different levels of the access network)? Q14 [Priority Two] Can you describe the criteria on which nodes are split in the cable TV network. At what level(s) in the network are nodes split? Do the criteria for node splitting differ for downstream and upstream traffic? Q15 [Priority Two] Can you describe the new assets and investments required for splitting a node/service area in the cable TV network?

12 2010/11 upgrades to the NITA LRAIC model 9 Q16 [Priority Two] At what distance intervals do amplifiers need to be installed on your coaxial cable in order to amplify the signal? Customer connections An understanding of the proportion of customers connected directly to your cable TV deployments would be useful for the model. Q17 [PRIORITY ONE] Can TDC describe the types of agreement that they have with the antenna associations and the co-operative associations? What duration are the contracts? What assets in the network are privately owned versus TDC-owned? Q18 [PRIORITY ONE] How many residential properties are connected to the cable TV network by: a. Fibre cable b. Coaxial cable c. Both fibre and coaxial cable? Q19 [Priority Two] What asset(s) do you install (if any) as network termination equipment on customer premises? Do you own all of these assets? Q20 [Priority Two] When cable TV is deployed to a premise from the last amplifier, what is the size of the cable deployed? How does this compare between fibre cable and coaxial cable? Please provide cable sizes for both coax and fibre (if any). Access nodes An understanding of the capacities and planned utilisations of the major network elements in the access network is important in order to generate a realistic modern network deployment. Q21 [PRIORITY ONE] Is it possible to provide geographic co-ordinates of your major access network nodes, stating where they co-locate with copper network infrastructure i.e. a. The MPEG stations? b. The primært accespunkt? Q22 [PRIORITY ONE] Is it possible to provide digital maps of boundaries of the regions served by your major access network nodes i.e. a. The MPEG stations?

13 2010/11 upgrades to the NITA LRAIC model 10 b. The primært accespunkt? Q23 [Priority Two] What are the capacities 2 of the various nodes in your access network? If there are options in the capacity of a particular node, it would be useful to understand both the options available and the reasons driving the use of different options (e.g. building density). Please specify for: a. Fibre nodes (for transfer between fibre and coaxial cables) b. Coaxial amplifiers c. Fibre amplifiers d. Delivery points for private infrastructure. Q24 [Priority Three] Is there a minimum level of demand that you assume is necessary for network elements described above in Q23? Q25 [Priority Two] Do you have any data (by geographic area, or nationally) on the average length of the final drop, in terms of: a. from the last amplifier to the edge of the end-user s property boundary b. from the property boundary to the customer premise equipment at the end-user s location). Q26 [Priority Three] On what basis do you deploy manholes/junction boxes in the network (e.g. is there a minimum distance between manholes/ junction boxes)? What size is used for each purpose? Please describe any major geographic or terrain variations, if applicable. Other network Q27 [PRIORITY ONE] Can you please describe, using diagrams if it is easier, the system elements, capacity drivers and functions within your CMTS? This could include: a. DOCSIS versions deployed by unit b. Prioritisation policies employed c. Contention management policies employed d. Traffic management policies employed 2 A measure of capacity for a network element would be, for example, the maximum number of dwellings passed, the maximum number of dwellings served or MHz/Mbit/s of throughput.

14 2010/11 upgrades to the NITA LRAIC model 11 e. Peak broadband speeds supported f. How each existing speed/contention profile is managed g. Whether additional speed/contention profiles can be supported h. Existing capabilities to route to multiple ISPs. Q28 [PRIORITY ONE] Can you please describe, using diagrams if it is easier, the system elements, capacity drivers and functions within the MPEG stations not captured in Q27? Q29 [PRIORITY ONE] What is the network platform (or platforms) used to carry broadband traffic on the cable TV network (once it has exited the CMTS)? Please describe this platform, including its capacity, utilisation, location and the manner in which traffic is handed over to the core. Q30 [Priority Two] What is the network platform (or platforms) used to carry analogue TV traffic on the cable TV network? Please describe this platform, including its capacity, utilisation, location and the manner in which traffic is handed over to the core. Q31 [Priority Two] What is the network platform (or platforms) used to carry digital TV traffic on the cable TV network? Please describe this platform, including its capacity, utilisation, and location. Q32 [Priority Three] What is the network platform (or platforms) used to carry voice traffic on the cable TV network? Please describe this platform, including its capacity, utilisation, and location and the manner in which traffic is handed over to the core. Q33 [Priority Three] Please describe the system elements, capacity drivers and functions of the network management system (NMS) deployed in your cable TV network. Q34 [Priority Three] Please describe the system elements, capacity drivers and functions of the wholesale and retail billing system (BS) deployed in your cable TV network. Q35 [Priority Three] Please provide any other capacity and utilisation parameters for significant network elements not already discussed in the list above. Note that a proposed list of cable TV network assets is provided in Annex A. 3.2 Network sizing We will need to understand the assets currently in the network as part of the calibration process. We will need to develop our understanding of the assets currently in the network and their modern equivalents, where possible. We would welcome your input on the feasibility of obtaining data on the assets contained within your network.

15 2010/11 upgrades to the NITA LRAIC model 12 Network footprint Q36 [PRIORITY ONE] Can you describe the extent of the cable TV network footprint, for example in a digital map showing those areas in which premises are passed? Please distinguish, if possible, between: a. Premises passed by own infrastructure b. Premises passed by private infrastructure. Q37 [PRIORITY ONE] Can you provide any data (by geographic area if available) on the number of nodes in the cable TV network i.e.: a. MPEG stations b. CMTS co-located at the MPEG station c. CMTS not co-located at the MPEG station d. Amplifiers and fibre nodes, split by those in primary ( primært accespunkt ), secondary and local distribution (if this is a relevant classification). e. Delivery points to private infrastructure split by primary, secondary and local distribution. Q38 [PRIORITY ONE] Can you provide a mapping of your CMTS units and your MPEG stations to your L3 router locations? Q39 [Priority Two] For each of the last three calendar years, can you provide any data on how many of your own nodes have split (distinguishing between those in the primary network, secondary network and local distribution systems)? Q40 [Priority Two] Can you provide any data on the volumes of other deployed assets in your own access network (e.g. junction boxes, manholes etc.)? Please provide this data by geographic area if available. Q41 [Priority Two] Can you provide any data on the volumes of other components in your MPEG stations (e.g. DHCP servers, ToD servers etc.)? Cabling We would like to understand the cable deployments that you currently deploy. This includes capturing data such as: types deployed, in terms of grouping of coaxial pairs or fibres volumes deployed

16 2010/11 upgrades to the NITA LRAIC model 13 unit costs and useful lifetimes (see Section 5). Q42 [PRIORITY ONE] Length (in sheath km) of coaxial cabling in the cable TV network, with breakdowns (if possible) by: a. geographic area b. primary network, secondary network and local distribution systems c. sheath (cable) size? Q43 [PRIORITY ONE] Length (in sheath km) of fibre cabling in the cable TV network, with breakdowns (if possible) by: a. geographic area b. primary network, secondary network and local distribution systems c. sheath size? Trenching and ducting Trench and ducts/tubes contribute a significant proportion of the cost of an access network. Hence, it is useful to understand the amount that is currently deployed. Q44 [PRIORITY ONE] Length of trench in the TDC cable TV network, with breakdowns a. by geographic area and by terrain type b. by primary network, secondary network and local distribution systems (as illustrated in Figure 3.1) c. by type (concrete duct, plastic duct, direct buried) d. by empty routes and cabled routes. Q45 [Priority Two] For the trench containing tubes, what is the average number of tubes per trench? Q46 [Priority Two] What fraction of the primary, secondary and local distribution network trench is currently shared with other infrastructure (e.g. TDC, other telecommunications, gas, electricity)?

17 2010/11 upgrades to the NITA LRAIC model 14 4 Fibre network (part 1 data) In order to understand access network deployments in Denmark, Analysys Mason will need to understand both the manner in which assets are deployed and the volumes of assets deployed. In the draft reference paper, we defined three levels of access network nodes, for both PTP and PON architectures. We have provided generic names for these three levels of nodes, described below in Figure 4.1. These labels are used throughout this chapter. Network asset Distribution node First distribution point Second distribution point Asset description These nodes contain the ODF, which serves as the border between the access and the core network layers. This is the term we use in both PTP and PON architectures. This is the first aggregation node downstream of the distribution node. For the PON, this node is a splitter location. For PTP, it is called a distribution cabinet. This is the second aggregation node downstream of the distribution node and the closest to the end-user. In PON, this is called a splicing point (it does not contain a splitter). In PTP, this is called a fibre cabinet. Figure 4.1: Definition of fibre access nodes [Source: Analysys Mason] 4.1 Fibre network design rules Analysys Mason needs to dimension an efficiently deployed forward-looking access network that is applicable to Denmark. In order to aid this process, we will need to understand the network as it is currently deployed, as well as the planning/engineering rules used for deployments in new areas. This section covers the following aspects of deployment. We have already begun discussions with representatives in TDC regarding some of these questions and are happy to co-ordinate with TDC to prevent duplication of effort: Overview of modern solutions Trench and cabling Customer connections Access nodes Other network. For each question, please provide separate answers, where applicable, for PTP architectures and PON architectures.

18 2010/11 upgrades to the NITA LRAIC model 15 Overview of modern solutions Q47 [PRIORITY ONE] What architecture/technical solutions are considered to be your modern efficient fibre deployment(s)? If the most efficient solution varies by geography, then please describe this variation, summarising the solution in each case. Please provide network diagrams if appropriate and it makes responding easier. In particular, for each solution, can you describe the a. Cabling structure in your primary network. For example, are discrete cables deployed between the distribution nodes and the first distribution points? b. Cabling structure in your secondary network. For example, are smaller cable sizes deployed as you get towards the end-user ( tapering )? Q48 [Priority Two] Can TDC describe what upgrades they plan to make to the TDC Fibrenet in the short to medium term (this could include cabinet upgrades, CPE upgrades etc.) Trench and cabling The digging of trenches and the laying of cables forms a large part of the costs in an access network, and so it is important to understand their specific dimensioning in the Danish context. The cost of civil works for digging trenches and laying duct for cable will vary depending on the terrain. We would appreciate your insight on the variation in the costs of burying cable or duct in different terrain and the extent to which the different terrain types are encountered in Denmark. It is likely that different types of duct are used, both in terms of cross-sectional diameter and in resilience, depending on the cabling that it needs to house and the level of protection that is required respectively. Q49 [Priority Two] Can you explain your classification of Danish terrain for planning civil works for digging trenches and laying duct for fibre cable? Can you outline the proportion of the access network, which is in each terrain type? Q50 [PRIORITY ONE] For different terrains, what are the requirements for duct/cable in the TDC Fibrenet? In particular: a. Do different terrain types require specific deployment solutions b. Can you describe how the cable armature (protective covering) varies with deployment i.e. what are the differences between the cable sheath deployed in ducts and those buried directly? c. What is the difference in unit cost per metre for laying cable in each terrain class (refer to Section 5).

19 2010/11 upgrades to the NITA LRAIC model 16 Q51 [PRIORITY ONE] What proportion of the cabling infrastructure in the TDC Fibrenet is put in ducts, buried directly, or aerially deployed? Can you provide any data for this proportion on a regional basis (e.g. asset volumes by ODF service area, or the most granular geographic region that is readily available)? Q52 [PRIORITY ONE] Are there standard cable sizes for the various links in the TDC Fibrenet? For example, what is the standard number of fibres in the cabling in the network from the: a. End-user to the second distribution point b. Between distribution points c. From the first distribution point to the ODF? Q53 [PRIORITY ONE] Would standard cable sizes be used for the various links in a PON deployment? For example, what would be the standard number of fibres in the cabling in the network from the: a. End-user to the second distribution point b. Between distribution points c. From the first distribution point to the ODF? Q54 [Priority Two] On what basis do you deploy trench along streets in the TDC Fibrenet: along one side, both sides, down the centre of the road? Does this vary by geography: if so, why and on what basis? Q55 [Priority Two] Can you specify how future demand is accounted for in the TDC Fibrenet (e.g. spare capacity in ducting or cabling at different levels of the access network)? Customer connections An understanding of the proportion of customers connected directly to your fibre deployments would be useful for the model. Q56 [Priority Two] What asset(s) do you install (if any) as network termination equipment on customer premises? Do you own all of these assets? Q57 [Priority Two] When fibre is deployed to a premise, what is the minimum number of fibres in the cable deployed? Q58 [Priority Two] How many residential properties are connected by fibre cable on your current deployments with:

20 2010/11 upgrades to the NITA LRAIC model 17 a. PON only b. PTP only c. Both PTP and PON? Access nodes An understanding of the capacities and planned utilisations of the major network elements in the access network is important in order to generate a realistic modern network deployment. Q59 [PRIORITY ONE] Is it possible to provide geographic co-ordinates of the major access network nodes in the TDC Fibrenet (i.e. the distribution nodes, or whichever nodes house the optical distribution frames), stating where they co-locate with copper network infrastructure? Q60 [PRIORITY ONE] Is it possible to provide digital maps of boundaries of the regions served by your major access network nodes in the TDC Fibrenet (i.e. the distribution nodes, or whichever nodes house the optical distribution frames)? Q61 [PRIORITY ONE] Is it possible to provide digital maps of boundaries of the regions served by your technical PON trials (i.e. whichever nodes house the optical distribution frames)? Q62 [Priority Two] What are the capacities 3 of the various nodes in your access network? If there are options in the capacity of a particular node, then it would be useful to understand both the options available and reasons driving the use of these options (e.g. building density). Q63 [Priority Three] What planned utilisations (as a percentage of capacity) do you assume for the network elements described in Q62? Q64 [Priority Three] Is there a minimum level of demand that you assume is necessary for an asset to be deployed for the network elements described in Q62? Q65 [Priority Two] Can you outline the architecture you use for the final drop cable to the premise in the TDC Fibrenet? Please provide diagrams if it makes responding easier. Q66 [Priority Two] Do you have any data (by geographic area, or nationally) on the average length of the final drop, in terms of: a. from the second distribution point to the edge of the end-user s property boundary b. from the property boundary to the network termination point at the end-user s location). 3 A measure of capacity for a network element would be, for example, the maximum number of dwellings that it usually passes.

21 2010/11 upgrades to the NITA LRAIC model 18 Q67 [Priority Three] On what basis do you deploy manholes/junction boxes in the TDC Fibrenet (e.g. is there a minimum distance between manholes/ junction boxes)? Please describe any major geographic or terrain variations, if applicable. Other network Q68 [PRIORITY ONE] Providing network diagrams if appropriate, please describe how traffic from TDC Fibrenet subscribers is currently carried over: a. TDC s IP core network b. DONG Energy s core network? Q69 [Priority Two] What is the network platform (or platforms) used to carry analogue TV traffic on the fibre network? Please describe this platform, including its capacity, utilisation, location and the manner in which traffic is handed over to the core. Q70 [Priority Two] Please describe how you expect traffic from TDC Fibrenet subscribers will be carried over TDC s IP core network and DONG Energy s core network in the future? 4.2 Network sizing We will need to develop our understanding of the assets currently in the network and their modern equivalents, where possible. We would welcome your input on the feasibility of obtaining data on the assets contained within your network. Network footprint Q71 [PRIORITY ONE] Can you describe the extent of the TDC Fibrenet footprint, for example in a digital map showing those areas in which premises are passed? Please distinguish, if possible, between: a. Premises passed with ducts/tubes b. Premises passed with ducts/tubes and cabling. Q72 [PRIORITY ONE] Can you provide any data on the number of nodes in TDC Fibrenet (i.e. regional nodes, distribution nodes, first distribution point, second distribution point etc.)? Please provide this data by geographic area if available. Q73 [Priority Two] Can you provide any data on the volumes of other assets in TDC Fibrenet (e.g. junction boxes, manholes etc.)? Please provide this data by geographic area if available.

22 2010/11 upgrades to the NITA LRAIC model 19 Cabling We would like to understand the cable deployments that you currently deploy. This includes capturing data such as: types of fibre e.g.. single-mode or pair other characteristics, such as the dispersion properties volumes deployed unit costs and useful lifetimes (see Section 5). Q74 [PRIORITY ONE] Length (in sheath km) of fibre cabling in TDC Fibrenet, with breakdowns (if possible) by: a. geographic area b. primary network (distribution nodes to first distribution point), secondary network (first distribution point to second distribution point) and lead-in (second distribution point to end-user) c. sheath type. Trenching and ducting Trench and ducts/tubes contribute a significant proportion of the cost of an access network. Hence, it is useful to understand the amount that is currently deployed. Q75 [PRIORITY ONE] Length of trench in TDC Fibrenet, with breakdowns a. by geographic area and by terrain type b. primary network, secondary network and lead-in c. by type (concrete duct, plastic duct, direct buried) d. by empty routes and cabled routes. Q76 [Priority Two] For the trench containing tubes (and cable), what is the average number of tubes per trench? Q77 [Priority Two] What fraction of the primary, secondary and local distribution network trench is currently shared with other infrastructure (e.g. TDC, other telecommunications, gas, electricity)?

23 2010/11 upgrades to the NITA LRAIC model 20 5 Cost-related data (part 2 data) This section sets out the bottom-up cost information that will inform the model costs and overall reconciliation. Although we will consider both the costs in the existing NITA models and collect certain benchmarks for the unit costs of network assets from other sources, alternative sources of cost information on a per-unit basis (i.e. per unit of network equipment) would be extremely useful for the bottom-up model and will allow us to put the model in the Danish context. 5.1 Bottom-up equipment unit costs For the bottom-up model we request cost information on a per unit basis (i.e. per unit of network equipment). Unit costs may cover all direct and indirect costs associated with the deployment and operation of each network element, including: Direct costs: switching site acquisition electronics or equipment physical works (cabinets, housing, racking, ducts/tubes) ancillary services (power supply, rectifiers, air conditioning units, security alarms) purchase or rental of land and buildings construction costs, including capitalised or non-capitalised labour costs operating costs (such as rental, power) Indirect costs: staffing costs (network planners, network engineers, network maintenance staff, network operations staff) maintenance costs (including ongoing hardware replacement costs) other indirect costs such as tools, vehicles, intangible costs (such as other capitalised costs, licence fees, deposits, warranties or guarantees). Unit costs include all direct and indirect costs associated with the deployment and operation of network elements. We would expect that it will be possible to source direct costs from vendor price lists. Indirect unit costs may be available from budgetary models, or alternatively can be supplied in aggregate in the following section as top-down data. We recognise the availability of such detailed data may depend upon the existence of an activity-based costing (ABC) approach please outline any assumptions used when generating cost numbers. Alternatively, estimates from other cost accounting systems can be used.

24 2010/11 upgrades to the NITA LRAIC model 21 For each of the assets identified in Annex A, please provide the following cost data in a table where it is available. If data at the suggested granularity is not available, then please provide data at the most granular level available. Please provide data for the calendar year 2009: Q78 [Priority Two] Direct unit capital costs a. identify where these costs vary significantly (e.g. by geography / terrain). b. provide the cost trend over time Q79 [Priority Two] Installation costs a. identify any costs that are capitalised b. identify where these costs vary significantly (e.g. by geography / terrain) c. provide the cost trend over time. Q80 [Priority Two] Full-time equivalent (FTE) operating and maintenance costs a. identify where these costs vary significantly (e.g. by geography / terrain) b. provide the cost trend over time c. where possible, identify and quantify the drivers of these costs (e.g. faults per node, faults per cable sheath kilometre, faults per cable pair kilometre). Q81 [Priority Two] Supplier annual support costs a. identify if these costs are capitalised b. provide the cost trend over time Q82 [Priority Two] Indirect accommodation costs for electronics (where available) a. identify where these costs vary significantly (e.g. by geography / terrain) b. provide cost trends over time c. where possible, identify and quantify the drivers of these costs (e.g. floor space required, annual power requirements in kwh, air conditioning requirements). Q83 [Priority Two] Indirect network-related capital costs for these assets (e.g. tools, vehicles etc.) and cost trend over time. Q84 [Priority Two] Indirect network-related operational costs for these assets (e.g. tools, vehicles etc.) and cost trend over time.

25 2010/11 upgrades to the NITA LRAIC model 22 Q85 Q86 [Priority Two] Costs for any other significant activities. [Priority three] Scrap value of any major assets, at risk of obsolescence or retirement. Q87 [Priority three] Decommissioning costs of any major assets, at risk of obsolescence or retirement. Q88 [Priority Two] Can you describe the methodology of any operational cost items that are capitalised in the above question (e.g. capitalisation of labour costs)? Q89 [Priority Two] Can you provide information on your network-related business overheads? Q90 [Priority Two] Can you identify your intangible costs (e.g. licence fees, deposits, warranties or guarantees)? Q91 [Priority three] Amount of working capital in each year (year average or year end). Wherever you can provide bottom-up cost data for individual network assets (e.g. cabinets, switches, gateways etc.) please also supply: Q92 [Priority Two] Capacity of the network asset associated with the bottom-up cost (particularly where different capacity elements have been available, such as cabinets). Q93 Q94 [Priority three] Magnitude of any price discounts applied to the list prices. [Priority three] Any annual price deflators built into the price list. 5.2 Top-down expenditure data The following top-down investment and operating expenditure data is requested in order to establish that the LRAIC model is generating appropriate levels of costs. Top-down data from management accounts is usually presented in some form of cost categorisation. The exact categorisation of costs varies from company to company. In Figure 5.1 and Figure 5.3 below we provide a suggested cost categorisation, although we would welcome suggestions for an alternative categorisation if it is easier to provide data in such a form. Please provide: Q95 [Priority Two] Operating expenditures for as many of the years as are available. Q96 [Priority Two] Gross book value (GBV) for the calendar year Q97 [Priority Two] Net book value (GBV) for the calendar year Q98 [Priority Two] Gross replacement costs (GRC) for the calendar year 2009.

26 2010/11 upgrades to the NITA LRAIC model 23 Category of costs Voice/VoIP platform Data platform Other core platforms Network Management System (NMS) Wholesale billing system Software Node-splitting Access trenching and ducting Access cabling Access nodes Other Additional clarification (where appropriate) This should contain expenditures related to running the voice/voip platform This should contain expenditures related to running the data platform This should contain expenditures related to running all other core platforms This category should show the costs of acquiring and running the network management centre. This should include all network-specific IT, excluding the intelligent network platform. This category regroups costs related to the billing systems. Some of the billing platform will be directly related to the provision of retail services, and should be excluded. Only the part contributing to wholesale services should appear here. Any other software-related expenditures NOT associated with the platforms above This should contain expenditures related to deploying trench, duct, cabling and nodes deployed in the access network for node-splitting purposes This should contain expenditures related to deploying and maintaining the trench/duct deployed in the access network, excluding that for node splitting This should contain expenditures related to deploying and maintaining the cabling deployed in the access network, excluding that for node splitting This should contain expenditures related to deploying and maintaining the nodes deployed in the access network, excluding that for node splitting Please advise if any of your core network costs should be classified in another cost category. Figure 5.1: Categories for cable TV network expenditures [Source: Analysys Mason] Category of costs Voice/VoIP platform Data platform Other core platforms Network Management System (NMS) Wholesale billing system Software Access trenching and ducting Access cabling Access nodes Additional clarification (where appropriate) This should contain expenditures related to running the voice/voip platform This should contain expenditures related to running the data platform This should contain expenditures related to running all other core platforms This category should show the costs of acquiring and running the network management centre. This should include all network-specific IT, excluding the intelligent network platform. This category regroups costs related to the billing systems. Some of the billing platform will be directly related to the provision of retail services, and should be excluded. Only the part contributing to wholesale services should appear here. Any other software-related expenditures NOT associated with the platforms above. This should contain expenditures related to deploying and maintaining the trench/duct deployed in the access network This should contain expenditures related to deploying and maintaining the cabling deployed in the access network This should contain expenditures related to deploying and maintaining the nodes deployed in the access network (e.g. fibre distribution cabinets)

27 2010/11 upgrades to the NITA LRAIC model 24 Category of costs Transmission Other Additional clarification (where appropriate) This should contain expenditures related to using DONG Energy s transmission network Please advise if any of your core network costs should be classified in another cost category. Figure 5.2: Categories for fibre network expenditures [Source: Analysys Mason] Category of costs Network planning and development Licence and numbering fees Business overheads Other Additional clarification (where appropriate) This should include all costs related to planning of new network deployments, such as for new switch deployments This should include the licence fees associated with providing fixed services, as well as for numbering ranges. This should include the costs that are common to the retail and network parts of the business, and do not scale in any way with the scale of the business. This may include top management wages and expenses, head office expenses, etc. Please advise if any other miscellaneous costs should be classified in another category Figure 5.3: Other categories [Source: Analysys Mason] 5.3 Asset lifetimes Q99 [Priority Two] Can you identify the lifetimes associated with each of the assets identified in Annex A below? Please provide the average physical lifetimes. Where reasonable estimates of physical lifetimes are not available, accounting lifetimes may be of use as a proxy for the model.

28 2010/11 upgrades to the NITA LRAIC model 25 6 Co-location services (part 2 data) TDC offers co-location services in Denmark, allowing other operators to use systems and space within TDC accommodation. The main components of these services are: location and installation of equipment installation of wiring and external conveyance provision of power, ventilation and cooling access to operator s own systems and space. We intend to update the Co-location module for the LRAIC model that considers the costs incurred by the modelled operator offering these services at appropriate network sites. For the purposes of Markets 4 5, the co-location services that require service costs to be calculated relate to unbundled access and bitstream access. We currently envisage that the existing bottom-up cost components for such services within the Co-location module can be used to build up the costs of equivalent co-location services in the cable TV/fibre networks. Therefore, we do not propose to submit any questions to TDC on these services. If, however, TDC think that there would in fact be material deviations in inputs for the cable TV/fibre networks, then we welcome TDC providing us with supporting data. This data could be provided using either a census, or perhaps a sample, of co-location sites. Data could include: Descriptions of activities that are the responsibility of TDC or the access seeker Surveys quantifying the time required to complete administrative and technical tasks Interviews with appropriate staff at TDC Average hourly rates for relevant personnel at TDC Dimensions of the co-location spaces in node accommodation (e.g. for PON splitters) Unit costs of the network elements (e.g. cabling, key cards etc.)?

29 2010/11 upgrades to the NITA LRAIC model 26 7 Data related to the pure LRIC approach (part 2 data) Q100 [Priority Two] In order to determine the pure LRIC of termination, the model will need to be run with and without traffic terminated on the fixed network. Do you believe that there are assets that should scale with the removal of this traffic which are described in the existing model with a different cost volume relationship? If so, please describe these assets and the required relationship.

30 2010/11 upgrades to the NITA LRAIC model 27 8 Questions Please submit any questions or queries regarding the data request to the following contact persons: process related issues: Jonas Bo Østrup, NITA, joe@itst.dk data request related queries: Dave Lonsdale, Analysys Mason, dave.lonsdale@analysysmason.com. Please copy queries related to the data request to the above contact at NITA. NITA would expect to circulate any responses to clarifications that would improve the accuracy of the data collection to the other industry parties. Industry parties should therefore indicate if a query regarding the data request contains confidential information that should be removed prior to circulation.