Broadband development in Moldova: ways of moving forward
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1 ITU-D Regional Development Forum for the Europe and CIS Region: "NGN and Broadband, Opportunities and Challenges" Broadband development in Moldova: ways of moving forward Sergiu Gandea, Ion Cosuleanu, Veaceslav Sidorenco Chisinau (Moldova) August 2009
2 Broadband benefits society Individuals, enterprises and governments Industrial growth Sustainable society Entertainment Government efficiency Social Personal efficiency Enterprise efficiency New business opportunities Universal need for services & efficiency gain
3 Broadband benefits society Increased broadband penetration is estimated to increase Irish GDP by 4 billion by % of British Telecom employees work from home or offices with remote access, which has reduced travel with ~69 million miles per year A 4% broadband growth could give 1.8 million jobs and $132 billion in payroll over 10 years in California Telstra's mobile broadband enables productivity gains of 9-27% USD 2.15 saved on each electronically filed U.S. tax return Error rate reduced from 20% to less than 1% Emergency rooms in Arizona connects rural doctors with urban specialists Source : Ericsson
4 Broadband comes in many flavors Fixed access Fixed/nomadic wireless Mobile access xdsl Fiber (PON & P2P) Fiber/VDSL2 Cable (DOCSIS2 3) WiMAX Fixed Mobile HSPA/LTE Satellite/Terrestrial Unlicensed (WiFi etc) Others GSM/EDGE WCDMA/HSPA LTE CDMA2000 EVDO Mobile WiMAX
5 Bandwidth Requirements Service Broadcast TV (MPEG-2) HDTV (MPEG-4) PPV or NVoD VoD Picture in Picture (MPEG-2) PVR Interactive TV High-speed Internet Video Conferencing Voice/Video Telephony Bandwidth (downstream) 2 to 6 Mb/s 6 to 12 Mb/s 2 to 6 Mb/s 2 to 6 Mb/s up to 12 Mb/s 2 to 6 Mb/s up to 3 Mb/s 3 to 10 Mb/s 300 to 750 Kb/s 64 to 750 Kb/s QoS Requirement Parameterized Parameterized Prioritized Prioritized Parameterized Prioritized Best effort Best effort Prioritized Prioritized Source: Teresa Mastrangelo, Case 1: 2 SDTVs + High speed Internet + Telephony -> ~6 Mb/s Case 2: Case 1 + HDTV + VoD + PVR. -> 20 to 100 Mb/s
6 GDP vs. BB penetration ORG. FOR ECONOMIC CO-OP. AND DEVELOPMENT OECD broadband penetration and GDP per capita Broadband penetration, June 2008 Broadband penetration (subscribers per 100 inhabitants, Jun 2008) Fiber penetration (subscribers per 100 inhabitants, Jun 2008) GDP per capita (USD PPP, 2007) GDP per capita, Simple correlation = Denmark Netherlands Norway Switzerland Source : OECD Iceland Sweden Korea Finland Luxembourg Canada United Kingdom Belgium France Germany United States Australia Japan Austria New Zealand Spain Ireland Italy Czech Republic Hungary Portugal Greece Slovak Republic Poland Turkey Mexico 0 Strong correlation between BB penetration and GDP per capita- not specific for fiber
7 Moldova with current 3,8% BB penetration level is very far from average European level of 22% of BB penetration Source: EC Progress report on the single European electronic communications market 2008
8 Main constrains in developing BB in Moldova Fixed telecommunication market de facto is not liberalized, access to existing local loop and associated infrastructure is restricted and is too concentrated High costs required for fiber infrastructure development limit possibilities of alterative operators to invest in access infrastructure Reduced demand for BB from governmental sector due to limited available e-gov services Unsteady and reduced interventions into the market of National regulator, ANRCETI, for stimulating competitiveness and telecom market development
9 Broadband market share by operators Source: ANRCETI report for Q1 2009
10 Broadband share by access technology in Moldova Source: ANRCETI report for Q1 2009
11 BB in Moldova - possible ways of moving forward Fixed BB focus area: Further development of the fixed infrastructure based on xdsl, but mostly based on FTTx/GPON and Ethernet-to-Home technologies De-monopolization of access to the existing canalization used for telecom infrastructure purposes Improving the interconnection regulatory framework and ensure fair competition for all telecom players for access to local loop, mainly owned by Moldtelecom Creating favorable conditions for appearing newly infrastructure operators for running independent public fiber optic community networks, like MAN (Metropolitan Access Network)
12 The Service Models to implement?
13 Transformation to Deep Fiber Access High demanding services (i.e., interactive and personalized HDTV) and users drives need for deep fiber access 1 2 km 3 4 km Common Transport Local exchange Key capabilities: Capacity growth Resource control Service Priority QoS Availability FTTN (VDSL2): ~20 Mbps FTTC (VDSL2): ~50 Mbps FTTB (VDSL2): ~100 Mbps FTTH (GPON & P2P) : Mbps Deep Fiber Access ADSL: up to 8 Mbps ADSL2+: up to 24 Mbps Classic DSL Copper Fiber Source : Ericsson
14 BB in Moldova - possible ways of moving forward (cont) Mobile BB focus area: Further development of mobile infrastructure based on WCDMA, HSPA, LTE evolution technologies Granting the preferential rights and conditions to mobile operators for using the limited radio resources for development and offering mobile BB services in rural area. For example, launching UMTS (3G) services in the 900Mhz spectrum used now by GSM operators Granting fiscal facilities for infrastructure projects in rural area or public subventions in developing of passive infrastructure (towers and masts for base stations/fiber optic network) Network Sharing, mainly of Radio Access Networks (RANs) by mobile operators Network outsourcing to vendors will allow to reduce operators OPEX and increasing possibility for BB infrastructure development
15 Thank you! Contacts: Sergiu Gandea - sergiu.gandea@ericsson.com Ion Cosuleanu ion.cosuleanu@undp.org Veaceslav Sidorenco - svv@renam.md
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