Committed to connecting the world
Mobile and Fibre Backbone Sharing
to Reduce Costs of Network
Deployment
WSIS Action Line C6 Facilitation Process
Creating an Enabling Environment for Growth
Geneva 20 May 2008
Susan Schorr
susan.schorr@itu.int
Head, a.i.,
ITU Regulatory and Market Environment Division
May 20, 2008
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Committed to connecting the world
Agenda
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Level of ICT Deployment
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Role of infrastructure sharing in extending
networks
ƒMobile Networks
ƒFibre backhaul and backbone networks
ƒ
2008 ITU Global Symposium for Regulators (GSR)
Best Practice Guidelines
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May 20, 2008
Other Resources
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Telecom market on the move
Growth in fixed lines, mobile cellular subscribers and estimated Internet users worldwide, 1996-2007
7.0
160
6.0
140
Competition in mobile
b illions
Competition in fixed-line
100
4.0
80
3.0
60
2.0
nb of countires
120
5.0
40
1.0
20
0.0
0
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Fixed lines
May 20, 2008
Mobile subscribers
Internet users
Source: ITU World Telecommunication/ICT Indicators Database and ITU
World Telecommunication Regulatory Database
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Uneven Distribution
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May 20, 2008
ICTs are unevenly distributed
Differences by region
Differences within regions
Differences between urban and rural
Differences by type of ICT
Differences by gender and for the
disabled
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Source: ITU World Telecommunication/ICT Indicators Database
May 20, 2008
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Source: ITU World Telecommunication/ICT Indicators Database
May 20, 2008
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Committed to connecting the world
Source: ITU World Telecommunication/ICT Indicators Database
May 20, 2008
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Fixed & mobile in the Black Sea
and Caspian region
Mobile and fixed penetrations, BSC region,
2007
Mobile penetration
Fixed penetration
Bu
lg
ar
ia
R
om
an
ia
Tu
rk
ey
Ar
m
en
ia
Az
er
ba
ij a
n
G
e
Ka org
ia
za
kh
st
an
R
us
M
ol
si
do
an
va
Fe
de
ra
Tu
tio
rk
n
m
en
ist
an
U
kr
ai
ne
140%
120%
100%
80%
60%
40%
20%
0%
Note: Data for Armenia, Russian Federation and Turkmenistan are for 2005
Source: ITU World Telecommunication Regulatory Database
May 20, 2008
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Committed to connecting the world
The Black Sea and Caspian region:
disparities in Internet users
Internet users per 100 capita, BSC region, 2000-2007
Bulgaria
60%
Romania
50%
Turkey
40%
Armenia
Azerbaijan
30%
Georgia
20%
Kazakhstan
10%
Moldova
Russian Federation
0%
2000 2001 2002 2003
2004 2005 2006 2007
Turkmenistan
Ukraine
Source: ITU World Telecommunication Regulatory Database
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May 20, 2008
Digital divide within the region: Internet penetration varies between
1.4 and 56 users per 100 inhabitants
Countries having established a separate regulatory authority and a
competitive market environment experience stronger growth than
monopoly-driven markets
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Source: ITU World Telecommunication/ICT Indicators Database
International
Telecommunication
Union
Committed to connecting the world
Role of Network Sharing to
Improve Broadband Diffusion
ƒ Sharing saves costs
¾ For developing countries seeking to leverage mobile
infrastructure boom into mobile broadband boom
¾ For developing countries also seeking to build IP-based
backbone and backhaul networks
¾ For developed countries seeking to leverage fixed line
investments and upgrade to Fibre to home, building or
curb
¾ Both share the same goal: to expand network deployment
and development by cutting costs
ƒ Allowing new players to provide broadband
ƒ Relying on time-tested competition principles
ƒ Allowing markets to work and close the existing market
gaps
ƒ Consumers getting service
May 20, 2008
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How to Share
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ƒ Share some infrastructure but still compete on services
ƒ Requires political will and clear regulatory framework
ƒ Many of the regulatory tools already exist in
interconnection and competition frameworks
ƒ Can apply principles like site sharing, collocation,
connection services to mobile, fibre and international
gateway facilities
ƒ Active infrastructure sharing also possible, but
necessary to address competition concerns
May 20, 2008
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Time is Right
ƒ For many developing countries, end of
exclusivity periods
ƒ A second wave of regulatory reforms
could be unleashed
ƒ Sharing strategies could be central to
the second wave of regulatory reform
ƒ Results could be phenomenal
May 20, 2008
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6 Degrees
What It Is:
What It’s Not:
9 Using infrastructure
8 An attempt to put
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9
9
9
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sharing together with
Universal Access strategies
within a competitive
framework
Reducing costs
Allowing new players to
provide broadband
Relying on time-tested
competition principles
About allowing markets to
work
Consumers getting service
May 20, 2008
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8
8
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infrastructure back in the
hands of monopoly
providers or to stifle
competition (Sharing’s not
possible if there’s only one
player!)
A strategy to lessen
competition or to sell less
equipment
About markets not working
Limiting consumer choices
A limit on facilities-based
competition
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Mobile Networks:
Passive sharing
•
Physical space
• Masts and pylons
• Cables
• Battery back-up
• Shelter and support cabinet
Source: Telecom Regulatory Authority of India
May 20, 2008
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Sharing Fibre Networks
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May require close cooperation between the government and local
authorities
and can leverage the need for municipalities/local
authorities for building new networks
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Important that access to ducts for laying fibre networks to be
available to competitors
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Regulators can create “infrastructure sharing desks” to coordinate the
joint laying of fibre
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Other
mechanisms
to
promote
fibre
sharing:
building
codes,
improving transparency, establishing dispute resolution mechanisms,
and promoting coordination
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Promoting PPP between government and incumbents
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Regulating
access
prices
for
new
Broadband
Networks
and
implementing the LRIC methodology for access pricing
May 20, 2008
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Building Open-Access Telecom
Infrastructure: MBC Model
1. Goal to Create a Fiber Optic Mesh Network that
Spans the entire region in rural Virginia, U.S.
2. Connect the Region’s Fiber Optic Network to the
National and Global Infrastructure
3. Create Multi-Media Service Access Points
(MSAP’s) at Strategic Aggregation Points Across
the Region
4. Deploy Optical and Wireless Technologies for
Community Infrastructure that reflect the best
technical and economic choices available
May 20, 2008
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Committed to connecting the world
MBC Model: Create Fibre
Optic Network
ƒ Several Issues to overcome:
¾ Political Hurdles…20 Counties, 4 Cities, each with own
agendas, ideas, and knowledge of telecom
¾ Building and Funding Patchwork Networks difficult to
manage, harder to integrate
¾ Capital and Operational Cost Considerations
ƒ Solutions:
¾ Single entity to manage project, oversee construction,
provide same infrastructure, same network connections for
each County/City
¾ Accountable for Results
¾ Grant Dollars offset debt service payments – appropriate
investment for the public good
¾ Open-Access wholesale fiber optic backbone network that
all can use, even the incumbent carriers
¾ Let Private Sector Serve the End User – not the fibre
May 20, 2008
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backbone provider
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Access to trenches and ducts
May 20, 2008
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Connect Region to
National/Global Telecom
Infrastructure
ƒ MBC owns fiber and
transport network to
Tier1 Data Locations
ƒ 200Gbps System
1Gbps of Direct
Internet Access from
Tier 1 Providers
¾ $16/Mbps versus
$266/Mbps
ƒ Key to attracting new
companies to Rural
Virginia
May 20, 2008
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Create MSAP’s in Region
ƒ Access Point for
Communities
ƒ Electronic
Equipment
Add/Drop
ƒ Colocation for
other Providers
ƒ Open-Access
Colocation
Policy
May 20, 2008
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GSR 2008 Best Practices Guidelines
A) Promoting an enabling environment
1. Appropriate Regulatory framework
2. Competition and investment incentives
B) Innovative regulatory strategies and policies
1. Reasonable terms and conditions
2. Pricing
3. Efficient use of resources
4. Scarce resources
5. Licensing
6. Conditions for sharing and interconnection
7. Establishing an infrastructure sharing one-stop-shop
8. Improving transparency and information sharing
9. Dispute resolution mechanism
10. Universal access
11. Sharing with other market players and industries
12. Sharing of regulatory practices
May 20, 2008
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Ten GSR 08 Discussion Papers
ƒ Overview: What do we mean by 6 Degrees of Sharing?
ƒ Mobile Sharing
ƒ Extending Open Access to National Fibre Backbones in
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Developing Countries
Breaking Up is Hard to Do: The Emergence of Functional
Separation as a Regulatory Remedy
International Gateway Liberalization: Singapore experience
Spectrum Sharing
WRC-07 Results and Impact on Terrestrial Broadband
Wireless Access Systems
End User Device Sharing
IPTV and Mobile TV: New Challenges for Regulators
International Mobile Roaming Regulation – An Incentive for
Cooperation
www.itu.int/ITU-D/treg/Events/Seminars/GSR/GSR08/papers.html
May 20, 2008
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Resources
May 20, 2008
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www.itu.int/ITU-D/treg/bestpractices.html
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ICT Regulation Toolkit
May 20, 2008
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Universal Access: Updated Version to be available in June 2008
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More Information
ƒ Regulatory information
¾ www.itu.int/treg/
ƒ ICT Regulation Toolkit
¾ www.ictregulationtoolkit.org
ƒ GSR Best Practice Guidelines
¾ www.itu.int/ITU-D/treg/bestpractices.html
ƒ GSR 08 Discussion Papers
¾ www.itu.int/gsr08/papers
ƒ ICTdec clearinghouse of regulators’ decisions
¾ www.ictdec.org
May 20, 2008
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Committed to connecting the world
THANK YOU
ITU BDT Regulatory and Market Environment Division
susan.schorr@itu.int
May 20, 2008
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