FTTH Regulation in Switzerland
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1 Bundesamt für Kommunikation Telecom Services FTTH Regulation in Switzerland
2 Overview Context Roundtables Regulation Conclusion Overview Introduction Context Our Mission State of Play Swiss Approach FTTH Roundtables Regulation 2
3 Basic Principles Art. 1 Telecommunications Act: Aim The aim of this Act is to ensure that a range of costeffective, high quality, and nationally and internationally competitive telecommunications services is available to private individuals and the business community. 3
4 Basic Principles Art. 1 Telecommunications Act: Aim Especially: Effective competition Reliable and affordable universal service Free of interference Protection of users from unfair mass advertising and from abuse associated with value-added services. 4
5 Overview Context Roundtables Regulation Conclusion State of Play CATV VDSL Infrastructure competition: 85% of households have a CATV connection 90% of these telecom capable 98% ADSL coverage 75% VDSL coverage 5
6 Overview Context Roundtables Regulation Conclusion State of Play Switzerland has one of the highest broadband penetration rates in Europe. Good mobile coverage and strong development of mobile data. For about 2 years there has been a lot of action in FTTH: municipal networks of the electricity companies, Swisscom s activities, still relatively few FTTH connections but the players are investing, competition from CATV using DOCSIS3. 6
7 What is the regulator doing? A 2-pronged approach: FTTH Roundtable: => Facilitator role of ComCom & BAKOM => Coordination Regulation: => Is regulation of FTTH required? => Legal basis? 7
8 FTTH Roundtable 8
9 Aims From the invitation (2008): In this country we are facing the construction of optical fibre telecom networks. Questions such as the shared use of glass fibre access, standardisation and coordinated network construction are either insufficiently covered by the law or not at all. Therefore we understand it as our duty to discuss these questions with you proactively and to find solutions. 9
10 Chronology and Organisation Fibre Roundtable (CEOs, Chair ComCom President): 1. Roundtable 9. June Roundtable 26. August 2010 Industry working-groups (experts, coordination BAKOM): L1: In-House Installation L1B: Access Points L2: Access to Services on Layer 2 L2B: Order Platform AG 3: Contractual Questions Link FTTH Working Groups 10
11 Overview Context Roundtables Regulation Conclusion Working Group Results 11
12 Layer 1 In-House Installations Assignment Define standards for the in-building fibre infrastructure Unified solution for the glassfibre connection to the customer Sharing of installation by several network operators Result Technical Guidelines concerning FTTH In-House Installations, Physical Media of Layer 1, Edition
13 Layer 1B Access Points Assignment To identify possible access points to FTTH networks Result Access on layer 1 as well as Active Line Access Non-discriminatory L1 and ALA offers for competition at the retail level Unbundlers expect a L1 offer at least in the Swisscom local exchanges. A common service platform for the various electricity companies is a prerequisite for alternative offers to Swisscom. 13
14 Layer 2 Service Access Assignment Definition of the relevant interfaces for access to the layer 2 services of the FTTH network operators Result Technical Guidelines concerning FTTH Open Layer 2 Access 14
15 Layer 2B - CH-FTTH-Proxy Assignment Proof of Concept - Provision of a unified platform for ordering and changing fibres and transport services (Interim-) Result 5 cities (sgsw, ewz, ewb, IWB, SIG) carrying out a project to realise a FTTH-Proxy Pilot (FTTH Broker) The pilot system is available to all interested ALA users and providers. The requirements of the pilot system are based on the results of the BAKOM working groups. The existing interface from EWZ serves as the basis. 15
16 Working Group 3 - Contracts Assignment Recommendations for the formulation of contracts between network operators and building operators concerning fibre installations Result Draft guidelines Model contract between Swisscom and the building owners association Reused by other parties 16
17 Fibre Roundtable: Results Technical standards Coordination of construction Promotion of investment and infrastructure competition - multi-fibre model Principles of network access for service competition Involvement of building owners 17
18 The Next Step Next fibre roundtable early 2011: - Form of offers - Regulatory questions including cartel and electricity legislation - FTTH outside of the urban areas Link to ComCom FTTH 18
19 Activities in Berne 19
20 Overview Context Roundtables Regulation Conclusion Present Access Regulation In the last revision of the law (2007) parliament defined a limited number of access forms based exclusively on metallic telephone lines (Art.11). 1. Fully unbundled access to the local loop, 2. Bitstream (limited to 4 years), 3. Rebilling, 4. Interconnection, 5. Leased lines, 6. Ducts. In the present law there is no basis for regulating access to optical fibre networks. 20
21 Overview Context Roundtables Regulation Conclusion Report of the Federal Council on the Telecommunications Act Postulate by the responsible commission invited the Federal Council to report on: - development of the Swiss telecom market, - experience with the revised telecom act, - possible need for action re. legislation. Regarding FTTH: From the point of view of supply and competition policy, does glassfibre network construction require regulation? 21
22 Overview Context Roundtables Regulation Conclusion Topics Covered Evaluation of the market Needs of the population and business Technical prerequisites Investment parameters Competition aspects Universal service Regulatory approaches Publikation: 22
23 Overview Context Roundtables Regulation Conclusion External Studies Approaches to regulation of modern telecom networks Scenarios for a national optical fibre expansion strategy in Switzerland Internet use by Swiss households Publikation: 23
24 Overview Context Roundtables Regulation Conclusion Answer of the Federal Council Question 6 of the postulate: FTTH regulation? Answer of the Federal Council: There is a high level of investment in FTTH By informal processes technical standards and a competition-friendly construction concept have been created. Regulatory measures or a new legal basis are not needed at present 24
25 Overview Context Roundtables Regulation Conclusion Lookout 25
26 Overview Context Roundtables Regulation Conclusion Job Not Done Challenges remain for the future: Multi-fibre does not guarantee competition. The present universal service legislation would not suffice for extreme broadband, in particular the financing mechanism. The report contains an extensive chapter on each subject. 26
27 Overview Context Roundtables Regulation Conclusion The Photonic Future 27
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