Broadband Workshop
Access to Underserviced Areas/Rural
Areas and Licensing
Carlos Costa
Johannesburg, 11.11.2013
TABLE OF CONTENTS
1. Portugal – A Brief Overview
2. Portuguese Telecoms Sector
3. Public Policy Rationale
4. Promoting Access to Fixed Broadband
5. Promoting Access to Mobile Broadband
6. Promoting Access to DTT
7. Wholesale Facilitators
1. Portugal – A Brief Overview
Snapshot
• Portuguese population:
- 10.5 M (living in Portugal);
- 4.5 M (living abroad) – 300 K in RSA
• Life expectancy:
76,7
82,6
• Working population as proportion of
working age population: 79,3%
Employment
10%
Primary Sector
26%
64%
Secondary Sector
Tertiary Sector
• Very High HDI: Rank 43
• Happiness Index (LPI): Rank 26
• Territory: 92,090 Km2
• PIB Per Capita: 15,702 €
2. The Portuguese Electronic Communications Sector
Penetration per 100 inhabitants (100
HH for Pay TV)
Evolution of BB Accesses
A Hub for World Connectivity and
Innovation
• Europe’s largest Data Centre
• Leading Service Centres (SAP, Altran, AlcatelLucent, Fujitsu, Microsoft)
• Participation in ESA projects
• Disruptive innovations
telecoms services:
in
 First prepaid card in
mobile telephony;
 “TimeWarp” in Pay
Tv;
 Cloud Services
SKA
3. Public Policy Rationale
Interrelated Social Concerns
• PT Population at risk of poverty: 25%
(EU average = 24%)
• PT rural population: 38%
(EU average = 26%)
• PT Population above 65 y.o: 19% (EU
average = 18%)
Disability
Rural NGA Specificity
Dispersion of the
Cost of passed
population
HH
Length of local
loop
KFS
Lower income
per capita
Penetration
Higher proportion
rates
of senior citizens
Lower intensity of
competition
Demand Side Obstacles in Rural Areas
• Look closely at demand side obstacles to understand the nature of the problem
3,5
3
3
2,7
2,7
2,7
2,5
2,5
2,5
2,5
2,3
2,1
2,1
2
2
2
2
1,9
1,8
1,7
1,6
1,5
1,5
1,4
1,3
1
1
1
0,5
0
Perceived BB
need
Low level PC
adoption
High BB Price
NGA initial
stage
Low literacy
rate
Low
geographic
coverage
EU27 Country in General
Poor QoS
Choice BB ISPs Perceived low
level
contractual
safeguards
Contents
native
language
Other
EU27 Rural Areas
Source: BEREC EWG end User Questionnaire
Rural NGA Coverage
We don´t
have Wi-Fi.
Speak to
each other.
Rural Broadband Coverage
DSL Total coverage
100%
DSL Rural coverage
90%
80%100%
HSPA Total coverage
NL
NL
CY
UK
CY
BE
LU
LU
CH
LV
UK
BE
CH
FR
ES CY
DK LV
FR
PT
RO NL
CY DK
EL
DK
IS MT
EL
AT
CH BE
MT
SE
NL ES
PT
IE
HU UK
DK
SE
AT
IS
IE AT
CZ
DE
LT CH
IT
ES
CZ
DE
ES
UE27
NO
NO
IE
IT
HR
HU
HR
IS
FI
FI
UE27
RO
PL
EE
LT
SI
10% 20%
LV
MT
SK
0% 20% 30%
BG
HU
BG
LT
RO
SI
HSPA Rural coverage
PL
LV
SK
SE
Source: ANACOM’s estimations and Point Topic
SE
FR
FR
FI
LU
BG
BG
FI
LU
EL
EL
SI PL
IT
UK
UE27
PL
AT RO
UE27 SI
NO IS
BE NO
IT HU
PT IE
EE PT
CZ CZ
DE HR
DE
SK
MT
0%
EE
SK
0% 10%
HR LT
EE
70% 90%
100%
60% 80%
90%
100%
50% 70%
80%
90%
40% 60%
70%
80%
30% 50%
60% 70%
20% 40%
50% 60%
10% 30%
40% 50%
0% 20%
10% 30% 40%
The Assessment Process for SGEI
What services are
absolutely essential
for the regional and
social cohesion?
Are those services
ensured by the
market, now or in the
near future?
YES
Is Society capable of
financing the proposed
public policy measures?
Cost Benefit Analysis
To review the concept
of "essential services"
Are the proposed
public policy
measures an effective
and efficient solution
for the problem?
YES
What are the net costs
for the Society?
NO
YES
Adequate
Solutions
Proposed public policy
measures
Alternative and efficient policy
instruments
NO
The Portuguese Digital Agenda
Targets
• In line with the Digital Agenda for Europe, it established ambitious goals for
2013 (access to basic BB for all) and beyond, namely:
2020
2020
2013 / 2014
(Mainland /
Islands)
Coverage
100%
@
≥30
Mbps
Subscriptions
≥ 50%
@
≥100
Mbps
Rural
Subscriptions
≥ 50%
@
≥40
Mbps
• To promote digital inclusion and usage of the Internet / ICTs by the citizens
living in remote areas, with low education levels, with disabilities and by the
elderly is also an important target.
4. Promoting Access to Fixed Broadband
Superfast Fixed Rural Broadband (1)
Areas and Municipalities High Speed networks in
Rural Areas
Five public tenders for high-speed networks in rural
areas launched by the government in 2009 (EU
support):
a)
b)
c)
d)
e)
f)
140 municipalities with no retail competition
covered (no cable network and no OAO colocated);
Minimum 50% population coverage of each
municipality (circa 242 K HH with
FTTH/GPON);
Minimum speed 40 Mbps (downstream) per
end-user;
Within 24 months;
With overall public financing of circa 106€ M.
Costing between [651; 1630] € per passed
HH with subsidies between [380; 1050] € .
Superfast Fixed Rural Broadband (2)
• Each high-speed rural network must:
a) Be managed as an open network;
b) Ensure, during 20 years, an wholesale offer;
c) Follow rules of transparency, non discrimination and healthy competition.
• The winners of the public tenders were selected in 2010 and 2011.
• 4 out of the 5 contracts area already signed and nearing completion.
• The R.A. Madeira contract is pending attribution of EU funds.
Superfast Fixed Rural Broadband (3)
• In the R.A. Azores submarine cable transmission was also included in the project
Corvo
Graciosa
Sta Cruz Graciosa
Morro Alto
Terceira
Sta Cruz
Flores
Santa Barbara
São Jorge
Faial
Velas
Angra Heroísmo
C.Gordo
Madalena
Topo
Horta
Pico
S.Miguel
11 Aggregation Access Points
(PAA)
Barrosa
Ponta Delgada
1 Central Access Point (PAC)
PAC
Submarine Cable Faial-FloresCorvo-Graciosa (FibroGlobal).
Inter-IslandsSubmarine Cable
(PTC).
Pico Alto
Vila do Porto
GbE Uplink leased line
Santa Maria
5. Promoting Access to Mobile Broadband
“e-iniciativas” (1)
• In connnection with “Ligar Portugal”, the government launched in mid-2007 the
“e.iniciativas”, aiming at massifying access to laptops and Mobile BB, targeting
teachers, pupils and trainees.
• A laptop with Vista, Office 2007 and mobile BB, priced € 150 with a € 5 discount
in the monthly fee was offered to the targeted public.
• The program was expanded to primary school children (“e.escolinhas”) in 2008,
with a laptop specifically adapted to children being priced at € 50, whilst poor
children could get it for free.
“e-iniciativas” (2)
• Adoption rate to e.iniciativas was higher in the interior regions where
adoption was lower (especially for students).
BB
• e.iniciativas acelerated the adoption of PC and of the Internet.
• Most of the adopters, did not quit the BB access that was installed at the HH
prior to the adoption of the e.iniciativas.
• The intensity of usage of computer and Internet increased after the adoption.
• The type of usage of the laptop and of the Internet access is “virtuous”.
• The adhesion rate has been circa 40%, with an overall volume of adherents of
circa 1.373 millions.
BWA 3.4-3.8 GHz Band Auction (1)
9 regions and a total of
36 lots (4 lots/region)
GEOGRAPHICAL AREA
2 x 28 MHz
A
A’
B
3600 MHz
3400 MHz
C
3600 MHz
B’
D
C’
D’
3800 MHz
Zone 1
(Lisbon, Leiria, Santarém and areas of Setúbal)
Zone 2
(Porto, Braga, Viana do Castelo)
Zone 3
(Coimbra, Aveiro)
Zona 4
(Vila Real, Bragança, Viseu, Guarda)
Zone 5
(Castelo Branco, Portalegre)
Zone 6
(Évora, Beja and areas of Setúbal)
Zone 7
(Faro)
Zone 8
(Azores)
Zona 9 (Madeira)
RESERVE PRICE (k €)
300
300
150
100
100
100
150
100
150
Combinatorial sealed bid auction (2 stages of 1 round each) and 2nd price rule (1Q2010)
Objetives: promote market entry => mobile operators were not allowed to participate.
provide broadband wireless access to underserved areas => regional approach
was adopted with a 3 years deadline to start commercial operation.
BWA 3.4-3.8 GHz Band Auction (2)
Auction’s Result
3 participants;
Number of
Assigned lots
per Region
3
2
2 winners: Onitelecom and Bravesensor;
 50% of the lots were assigned;
 8 regions (no bids for R.A. Madeira);
2
2
1
4
2
 Total Revenue: 3.41 M €;
Due to technological and economic
evolution, commercial developments are
modest.
Technical Conditions
Service & technology neutrality
2
BEM concept
Fixed, mobile or nomadic operations
Decision – 2008/411/EC
2011 - Multiband Spectrum Auction (1)
~392 MHz of radio spectrum and 39 lots
MHz / band
450 MHz
1%
2.6 GHz
48%
800 MHz
15%
900 MHz
5%
1800 MHz
29%
2,1 GHz
2%
Frequency
Number of Lots
Reserve Price (M€)
450 MHz
1 lot of 2 × 1.25 MHz
2
800 MHz
6 lots of 2 × 5 MHz
45
900 MHz
2 lots of 2 × 5 MHz
30
1800 MHz
9 lots of 2 × 5 MHz
4
1800 MHz
3 lots of 2 × 4 MHz
3
2.1 GHz
2 lots of 5 MHz
2
2.6 GHz
14 lots of 2 × 5 MHz
3
2.6 GHz
1 lots of 25 MHz
3
2.6 GHz
1 lots of 25 MHz
3
SMRA - Simultaneous Multiple Round Ascending Model,
Coverage obligations in the 800 MHz band – 480 rural parishes per lot (80 per lot) to be
covered by the end of 2014.
Set of measures to facilitate market entry:
 900 MHz: 20% discount for new entrants,
 800/900 MHz: MVNO and roaming agreement (under special conditions),
 Infrastructure sharing,
 Spectrum caps with spectrum reservation in 1800 MHz and 2.6 GHz (FDD).
2011 - Multiband Spectrum Auction (2)
Result
Technical Conditions
 3 Winners: TMN, Optimus and Vodafone
 Total revenue: 372 M €
 Service & technology neutrality
 75% of spectrum assigned
 800 MHz: BEM concept – Decision
2010/276/EU.
Operation possible after “switch-off”
(26/4/2012) and restrictions apply untill
Dez. 2014 due to Spanish DTT.
 97.5 MHz of available spectrum
Band
Assigned Spectrum
Available Spectrum
450 MHz
None
2 x 1,25 MHz
900 MHz
2 x 5 MHz
2 x 5 MHz
1800 MHz
2 x 42 MHz
2 x 15 MHz
2.1 GHz
None
10 MHz
2.6 GHz FDD
2 x 60 MHz
2 x 10 MHz
2.6 GHz TDD
25 MHz
25 MHz
 900/1800 MHz: GSM/UMTS/LTE and
future technologies to be included in
Decision 2011/251/EU.
 2.6 GHz: BEM concept – Decision
2008/477/EC.
6. Promoting DTT
Promoting DTT (1)
• TV Law (Law nº 27/2007) was published in July 2007.
• The process of DTT implementation was very inclusive
and transparent having started in August 2007 and
ended in 26.04.2012.
• The DTT operator has a legal obligation to ensure
coverage via terrestrial means of:
a) 90,12% of Portugal mainland population;
b) 87,36% of R.A. Azores population;
c) 85,97% of R.A. Madeira.
• Hence, some areas are covered via satellite (DTH).
• Users not covered via terrestrial DTT may receive from
the DTT operator a comparticipation for the acquisition
of up to two set-top boxes per HH, as long as they do
not subscribe to pay tv services.
Promoting DTT (2)






Public hospitals;
Health centers;
Libraries;
R&D centers;
Charities;
Public schools
Subsidies available to socially
disadvantaged groups:



Set-Top Box Subsidy
Disabled end-users;
Low-income users;
Retirees
and
pensioners
with
monthly
income
below 500 €
50% of the set-top box price,
up to a maximum of 22 €
Installation Adaptation Subsidy

End users > 65 y.o.
in social isolation
61 €
7. Wholesale Facilitators
EC Recommendations
•NRAs should examine differences in conditions of competition in different
geographical areas in order to determine whether the definition of sub-national
geographic markets or the imposition of differentiated remedies are warranted.
Where divergences in the conditions of competition are stable and substantial,
NRAs should define sub-national geographic markets.
•NRAs should monitor whether the deployment of NGA networks and the
subsequent evolution of competitive conditions within a geographically defined
market warrant the imposition of differentiated remedies.
EC Recommendantion of 20.09.2010 on regulated access to NGA
•Replicability tests in the context of market analysis should take into account
differences between geographic areas in terms of the NGA access input used
(rural vs densely populated areas)
EC Recommendation of 11.09.2013 on consistent non-discrimination obligations and costing
methodologies to promote competition and enhance the broadband investment environment.
Regulated Access to Ducts of the
Historic Operator
Elements of the Reference Offer
Access
Core
How Does Duct Access Offer Works?
Access to Poles
More used in rural areas.
Access to Poles
Pole
Access
OLO
Responsability
Entrance point
OLO
Responsability
Building
Tube
OLO Pole
PTC Poles
Transition
Visit
Chamber
Duct
access
Legend
Fixing
OLO cable
Other Measures
Decree-Law 123/2009
 Access for telecom operators to ducts and other public infrastructures
 Simpler and effective rules for the construction of new infrastructures
 A public geo-referenced information system for all infrastructures
ITED/ITUR
 Open and non discriminatory access to buildings with at least a dual fiber optic
cable per dwelling and a point for sharing infrastructure in the building or
surroundings
At the End of the Day
“Stones in the road? I save every single one, and one day I’ll build a castle.”
Fernando Pessoa (Lisbon and Durban Poet)
Bartolomeu Dias