The AGCOM efforts on NGA in Italy
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1 The AGCOM efforts on NGA in Italy Fulvio Ananasso Director of Studies, Research & Education FTTH Council EU Conference 2011 Huawei Workshop, Milan, 8th February /17
2 Presentation Outline 1. AGCOM at a glance 2. AGCOM Research Programs ( ) 3. AGCOM NGA Regulations 2/17
3 Presentation Outline 1. AGCOM at a glance 2. AGCOM Research Programs ( ) 3. AGCOM NGA Regulations 3/17
4 The current Italy position Percentage of fibre connections in total broadband among countries reporting fiber subscribers, June 2010 Total number of fixed (wired) broadband subscriptions, by country, millions, June 2010 Source: OECD Broadband statistics, June 2010 This should justify the pressure to do something to promote UBB 4/17
5 AGCOM areas of competencies TELECOMMUNICATIONS: Interconnection and Access, numbering plan, price regulation, Universal Service Obligations, Quality of Service, dispute resolution, AUDIOVISUAL: channel allocation, Advertising, protection of minors, enforcement of compliance with applicable antitrust legislation and pluralism principle PRESS: monitoring on cross-ownership in the media sector COPYRIGHT: monitoring compliance with regulations CONFLICT OF INTERESTS (communications sector): monitoring compliance with regulations 5/17
6 The two main tasks assigned to AGCOM by Law 249/97 are: i. to ensure equitable conditions for fair market competition, and ii. to protect fundamental rights of all citizens. AGCOM also pursues the goal of Technological Innovation, which stimulates creation of new products and services, new productive cycles and related, increased resources made available; encourages the creation of new languages while promoting computer literacy of citizens towards the "information society". In such context, the Studies, Research & Education Directorate aims at catalyzing AGCOM Research & Development initiatives across the domestic (and international), arena, with specific attention to Electronic Communications R & D and Advanced Education activities. AGCOM Mission 6/17
7 Presentation Outline 1. AGCOM at a glance 2. AGCOM Research Programs ( ) 2011) 3. AGCOM NGA Regulations 7/17
8 The AGCOM Research Programs The ISBUL Research Program ( ) addressed juridical, technological and economic aspects of Infrastructures and Services for Broadband and Ultra-Broadband Networks ISBUL has been carried out by AGCOM in collaboration with several Italian Universities: - Milan (Bocconi and Polytechnic) - Naples (Federico II) - Rome (LUISS, Roma Tre, Sapienza e Tor Vergata) - Siena - Polytechnic of Turin - Imperial College (London) The SCREEN Research Program (2011) approved by AGCOM Council 17 th December will focus on Services and Contents for Next Generation Networks 8/17
9 AGCOM Research Program Ultra BroadBand Infrastructures & Services (ISBUL) Objective: paving the road to AGCOM permanent presidium on technological, juridical, economic, aspects in Ultra Broad Band Next Generation Access Network infrastructures (UBB - NGAN): Fiber To The x (FTTx) Access in NGAN Development Broadband Wireless Access (BWA) Digital Dividend Radio Spectrum below 3.5 GHz Net Neutrality & Telecommunications Infrastructures Security Audiovisual & Media Contents Normative Aspects / Civil Works / Ducts & Infrastructures Sharing Economic Aspects, Business Planning and Financing Options Public Private Partnership (PPP) Investments Impact of Regulation on Economy;. 9/17
10 NGAN economics (Italy) Italy: ~60 million population; ~27 million fixed lines UBB coverage options: 20% (~5.5 m lines), 50% (~13,5 m lines) UBB lines take up rate: from ~40% to % in 10 years Network architecture options: FTTB, FTTH Access technology options: GPON, P2P total replacement copper network value (5-to-15 b ) WACC 5-to-8% NGN CapEx % coverage (750 1,000 / UBB line) P2P costs from ~10% (FTTB) to ~35% (FTTH) higher than GPON NGN access fee / required ARPU to break even -- higher than with conventional lines Source: ISBUL WP2.2 NGN Financing Options 10/17
11 NGN impact on domestic economy Population Population Cost Cost Total Total effects effects multiplier multiplier equivalent equivalent Covered Covered Architecture Architecture billion billion New New jobs jobs ( ( bill.) bill.) (total (total eff./cost) eff./cost) GDP GDP increase increase % min min max max min min max max min min max max 91% 91% mixed mixed P2P P2P // GPON GPON 15,5 15, ,9 109,9 785,8 785,8 7,1 7,1 50,7 50,7 0,7 0,7 5,1 5,1 50% 50% FTTH FTTH P2P P2P 13,3 13, ,6 66,6 438,0 438,0 5,0 5,0 32,9 32,9 0,4 0,4 2,9 2,9 20% 20% FTTB FTTB GPON GPON 3,0 3, ,6 23,6 172,1 172,1 7,9 7,9 57,4 57,4 0,2 0,2 1,1 1,1 Source: ISBUL WP2.4 NGN Investments Impact on Country Economic Development 11/17
12 Presentation Outline 1. AGCOM at a glance 2. AGCOM Research Programs ( ) 3. AGCOM NGA Regulations 12/17
13 AGCOM is collecting a multiplicity of information available from different sources both internal and external, publicly available and/or deriving from direct contacts with stakeholders in the Electronic Communications sector. Ultra Broad Band Observatory (OSBUL). One of the building blocks of the Communications Market and Infrastructures Observatory, represents one of the many focus under implementation to perform a periodic benchmarking of the Ultra Broad Band scenario worldwide with emphasis on italian territory. Inventory Mapping (IMAP) Observatory, another building block of the Communications Market and Infrastructures Observatory, aiming at implementing a consistent Registry of Next Generation Infrastructures (RING) in Italy. Communications Market and Infrastructures Observatory 13/17
14 GIS for Inventory Mapping 14/17
15 AGCOM decision 731/09/CONS - 1/2 AGCOM 2nd round market analysis decision 731/09/CONS issued Dec.16, 2009 on milestones 1, 4 and 5 of Recommendation 2007/879/CE. TI identified as having significant market power (SMP). AGCOM excludes fibre unbundling, but sets obligation to provide wholesale broadband access (WBA) over copper and fibre network at DSLAM (in local exchange areas not open for full LLU and shared access), parent switch, distant switch and remote IP node levels independently of technology (ATM or Ethernet / IP). AGCOM decision 731/09/CONS entrustes the NGN Italia Committee with the task of providing a non binding proposal on Guidelines for migration towards NGN networks -- Art. 73(6). 15/17
16 AGCOM decision 731/09/CONS - 2/2 TI to provide access to ducts and dark fibres in the access network. Final report of research program ISBUL (May 2010) puts forward proposals for implementing a telecom infrastructure database. TI to provide a database reporting detailed information about civil infrastructures and optic fiber. Obligation imposed to decongest existing ducts as far as technically possible -- Art. 20(3). Requirement suggested for incumbent to reserve capacity in new civil infrastructures for ANOs. AGCOM may use international benchmarks to assess fair and reasonable charges for TI s duct access. Reference Offer (RO) is part of proposed transparency obligation. TI to provide Fixed access network deployment plans. 16/17
17 AGCOM decision 1/11/CONS Public consultation on regulatory strategy concerning Next Generation Access Networks launched Jan.19, 2011 (45 days) 5 pillars indicated by AGCOM as crucial to NGA Regulations: investment sharing incentives for Operators implementing NGANs risk premium for investment risk remuneration principle of ladder of investment consideration of differences in competitive conditions across different geographic areas evaluation of possible symmetrical undertakings in the presence of competition bottlenecks. 17/17
18 Thank you for your attention ISBUL Report (italian) enuto&dcid=416 Extended Summary (english) to be posted soon on the website 18/17
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