Development of Broadband markets

workablejeansMobile - Wireless

Nov 21, 2013 (3 years and 11 months ago)

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G.
Pūras

Development of Broadband markets



Communications Regulatory authority of Lithuania

Electronic communications department

www.rrt.lt




Disclaimer
:
The views, opinions or positions expressed in this presentation are
of my
own and do not necessarily reflect the views, opinions or
positions of Communications Regulatory authority of
Lithuania

2013.08.29, Latvia

Broadband markets LT

1

psl

G.
Pūras

Outline


1.
Broadband markets in Lithuania
(statistics)

2.
New EU initiatives
(EC rec.; Regulation)

3.
Broadband promotion. Lithuanian
approach:

-
EU context;

-
Regulatory impact on NGA (main drivers)

2013.08.29, Latvia

Broadband markets LT

2

G.
Pūras



I
.
Broadband

market

developments

in

Lithuania

2013.08.29, Latvia

Broadband markets LT

3

psl

G.
Pūras

Market maturity?

4

TEO LT, AB

42%

UAB
"Omnitel"

8%

UAB "Bitė
䱩整ev愢



AB 剡摩j漠ir
T敬敶izij潳
c敮瑲慳



啁B
"B慬瑩c畭
Ts"



啁B
"䍧慴敳"



l瑨tr

㈸2

709.8

796.1

879.6

988.8

1054.3

21.2

23.9

27.1

30.9

35.4

0
5
10
15
20
25
30
35
40
0
200
400
600
800
1000
1200
2008
2009
2010
2011
2012
The number of internet access subscribers, thousand
The penetration of internet access (per 100 people)
200.3

247.6

294.6

358.8

378.8

368.5

369.2

370.1

2005
2006
2007
2008
2009
2010
2011
2012
Internet access services market revenues, LTL million
2013.08.29, Latvia

Broadband markets LT

G.
Pūras

Technologies:
towards

fibre

5

15
.
126

51
.
703

91
.
037

127
.
430

149
.
952

148
.
013

202
.
847

216
.
653

232
.
479

252
.
705

2008
2009
2010
2011
2012
FTTH
FTTB
23.5%

33.0%

35.0%

36.4%

38.2%

9.1%

6.8%

5.6%

4.6%

4.1%

36.9%

29.5%

24.2%

20.0%

17.4%

6.3%

6.5%

10.1%

10.8%

12.2%

17.8%

20.5%

22.1%

26.0%

26.7%

2008
2009
2010
2011
2012
FTTx
CTV networks
xDSL
Wireless communication lines
Mobile communications
2013.08.29, Latvia

Broadband markets LT

G.
Pūras

Technologies
in

EU:
different

story


2013.08.29, Latvia

Broadband markets LT

6

DSL (LT)

DSL (EU)

G.
Pūras

Increasing

speed

7

Data
upload

Data
download

1.

Hon

Kong

28,52
Mbps

1.

Hon

Kong

42,41
Mbps

2.

South

Korea

28,15
Mbps

2.

Singapore

36,01
Mbps

3.

Lithuania

26,83
Mbps

3.

Lithuania

35,06
Mbps

4.

Singapore

20,01
Mbps

4.

Luxembourg

34,51
Mbps

5.

Latvia

18,74
Mbps

5.

South

Korea

33,73
Mbps

57.10%

36.60%

17.30%

10.70%

8.50%

25.20%

37.70%

40.80%

37.50%

34.40%

17.60%

25.80%

12.80%

11.80%

10.40%

21.00%

30.60%

36.60%

8.10%

9.40%

10.10%

0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2008
2009
2010
2011
2012
to 2 Mbps
from 2 Mbps to 10 Mbps
from 10 Mbps to 30 Mbps
from 30 Mbps to 100 Mbps
100 Mbps and higher
2013.08.29, Latvia

Broadband markets LT

G.
Pūras

High

fibre

penetration


8

2013.08.29, Latvia

Broadband markets LT

G.
Pūras

NGA (>30 Mbps) take up


2013.08.29, Latvia

Broadband markets LT

9

G.
Pūras


-

Draft

EC
recommendation

on

non
-
discrimination

and

costing

-

EC
proposal

for

Regulation

on

cost

saving

measures

to
promote

BB
investment

I
I.
New

EU
initiatives

2013.08.29, Latvia

Broadband markets LT

10

G.
Pūras

I.
Draft EC recommendation on non
-
discrimination and
costing (latest
CoCom

draft 2013
-
05
-
29)


Non



discrimination


EoI

vs
.
EoO


Technical

replicability


KPIs

+
auditing


SLGs


Costing


BU
-
LRIC


Reusable

vs
.
Non
-
reusable

civil

eng
.
assets


Price

band

(8
-
10 EUR for copper ULL)


Trade
-
off

(
EoI

+ tech./
econ
.
repl
. +
price

constraints
)


Implementation



2016
-
12
-
31

2013.08.29, Latvia

Broadband markets LT

11

G.
Pūras

Copper access in EU



Copper ULL prices
are declining…


…but too slow to
have significant
impact on NGA
investments

2013.08.29, Latvia

Broadband markets LT

12

G.
Pūras

II.
Regulation
on cost saving measures to promote BB
investment

(2013
-
03
-
27)


Objective
-

to reduce the cost and enhance the
efficiency of deploying high
-
speed electronic
communications infrastructure


Access to existing physical infrastructure:


all infrastructure to be shared


NRAs to solve disputes


Transparency:


Single information point (location, size, owner) +12m.


Electronic means (public+6m.; private+12m)


in
-
site surveys


Coordination of civil works


Permit granting


In
-
building equipment


2013.08.29, Latvia

Broadband markets LT

13

G.
Pūras


-

Only with regard to the powers of NRA

I
I.
Broadband promotion.

Lithuanian approach

2013.08.29, Latvia

Broadband markets LT

14

G.
Pūras

Broadband usage in EU


Super
-
fast

BB

(>100
Mbps)

is

lagging
;


Fixed BB usage
(all
speeds)

in EU is
increasing,

but slowly



Mobile BB is
increasing



Still significant
differences persist
among the countries

2013.08.29, Latvia

Broadband markets LT

15

G.
Pūras

BB: Lithuania in EU context (1)

16

Lithuanian case:

Wholesale access products are not popular

ULL:
only ~
500
lines unbundled (0,
0
9 %)

WBBA: only
~
1,300 wholesale lines used (0,33 %)

Alternative operators tend to use their own access infrastructure
.


G.
Pūras

BB: Lithuania
in EU
context (2)

2013.08.29, Latvia

Broadband markets LT

17

Alternative providers
(and therefore


their end
-
users)

benefit from being
independent from incumbent
.

51%
of broadband lines are
based on alternative
infrastructure

Source: 15th Implementation report
,
European Commission, 2009

G.
Pūras

Incumbent
‘s
new


FTTx

lines

Alternative

new

FTTx

lines

Total

new

FTTx

lines

BB in Lithuania: infrastructure
competition

2013.08.29, Latvia

Broadband markets LT

18

Share of alternative operators’ investments into
FTTx

declining.

Since 2010 m. ~70% of new
FTTx

deployment is done by TEO
(incumbent)

60% of total
FTTx

infrastructure is still
owned by alternative providers
(2011 QIV)

Source
:
RRT

FTTx

is being provided by 57 undertakings in Lithuania.

Duct

rental

price


1km
=
30 EUR
/month

G.
Pūras

Ducts, km

Change
, km

Average duct renting rate is approx. 500 km
per year

Access to the ducts


essential for
FTTx

investment

2013.08.29, Latvia

Broadband markets LT

19

Access to the physical infrastructure was and still is the
essential enabler of alternative infrastructure roll
-
out
.

Source
:
RRT

2008
2009
2010
2011
2012
FTTx
xDSL
The change of leading broadband technology
from
xDSL

toFTTx

occured

in 2009
(quite early)

G.
Pūras

Residential Internet connections

Demand for high speed connections is steadily increasing

2013.08.29, Latvia

Broadband markets LT

20

57.10%

36.60%

17.30%

10.70%

8.50%

25.20%

37.70%

40.80%

37.50%

34.40%

17.60%

25.80%

12.80%

11.80%

10.40%

21.00%

30.60%

36.60%

8.10%

9.40%

10.10%

2008
2009
2010
2011
2012
100 Mbps and
higher
from 30 Mbps to
100 Mbps
from 10 Mbps to
30 Mbps
from 2 Mbps to
10 Mbps
to 2 Mbps
G.
Pūras

Questions…

2013.08.29, Latvia

Thank you!


Giedrius Pūras

_________________________________________________________________

Acting head of Price control and Statistics division

Electronic communications department

Communications regulatory authority of Lithuania

Tel. +370
-
698
-
56100

e
-
mail: gpuras@rrt.lt

Broadband markets LT

21

G.
Pūras

BB
QoS

measurements (1)

1.
Providers must state the
minimum speed
in
contracts (mobile BB


usually 0 kbps)

2.
Dedicated speed test website:



www.matuok.lt



Similar to SpedTest.net


No single Exchange point in LT, therefore all providers were asked
to allow connecting the RRT server at certain nodes;


Speed test reports can be archived or saved to PC

2013.08.29, Latvia

Broadband markets LT

22

G.
Pūras

Wireless BB quality measurements

3.
Wireless

broadband
speed measurements and
publication of results:


Based

on

partnership
.
Currently
: 3
MNOs

+
WiMAx

operator
;


Commercially
available
(provided
by operator) modems are
used;


RRT
developed

software

is

used
;


Locations: Post offices (
one

week

testing
in

certain

location
)
;


Yearly report published
;


Interactive and up to date measurement data available in dedicated
website
:

http://epaslaugos.rrt.lt/matavimai/


Open
data for third
parties’
applications made available in
2013
:

http://epaslaugos.rrt.lt/WebServices/


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Broadband markets LT

23

G.
Pūras

Termination rates regulation

Pure LRIC
results to be applied from 2013 (EC. Rec.)

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Broadband markets LT

24

Country
Target Rate
(
€ct/min.)
NL (OPTA)
1,20
BE
1,08
FR
0,80
IT
0,98
ES
1,09
UK
0,81
G.
Pūras

Wireless

broadband measurement locations
(2012)


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Broadband markets LT

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