FTTH in Germany – The BUGLAS Point of View 16 February 2012

Wolfgang Heer, CEO BUGLAS

About BUGLAS

BUGLAS = Association of Germany‘s Optical Fiber Industry

• Founded in 2009, BUGLAS

today has 39 Member Enterprises

• BUGLAS represents about 90 % of the carriers, which deploy FttB/H-Networks in Germany

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BUGLAS = a strong association of optical fiber specialists

• Telcos and municipal authorities which plan and deploy optical fiber based access networks

• Providers of consulting know-how and technological components

• Enterprises, which deliver content

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BUGLAS member enterprises (extract)

Telcos: Providers:

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Questions

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1

2

Will optical fiber access to the building/home be ubiquitous in Germany in a measurable amount of time?

Will there be a significant increase in demand for high bitrate accesses?

Ongoing investments in FttB/H-networks

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0.28 0.46

0.6

1.19

2009 2010 2011 2015 e

Total amount of Investment of BUGLAS-members into FttB/H-networks

In billion €

Increasing number of connected households

500,000 620,000

870,000

1,800,000

2009 2010 2011 2015 e

BUGLAS-members continue to connect households

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No nationwide FttB/H-network

• FttB/H-deployment in Germany is driven by local carriers (120 – 150 municipal energy suppliers/ subsidiary enterprises)

• Germany‘s optical fiber network resembles a patchwork blanket • interoperability standards available since 2011

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Open access is the key

Requirement for Competition and a high utilization of networks: negotiated, non-discriminatory access on a wholesale basis.

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Demand is the driver

The demand for high bitrate access in Germany is low. Reasons: • lack of awareness for the future need of higher

bandwidths • the average used bandwidth suffices for most of today‘s

applications • bargain-hunter mentality

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Why will demand increase in the future?

Digital natives have a completely different behaviour concerning media and communication. The number of digital natives is rising continuously.

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Why will demand increase in the future?

• rising number of digital natives

• internet of things • traffic control/

supervision • video on demand • catch-up TV • video conferencing • …

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Future demand in bandwidth can only be satisfied with fiber

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The legal framework

New Telecommunications Act to come in force in March: Positive: • granted access to houses • allowing new deployment

technologies • no broadband universal service obligation Negative: • no solution for funding gap • augmentation of administrative tasks

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The regulatory framework

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Vital issue: Pricing of wholesale products • leased access line • interconnection The reduction of wholesale prices does not boost Investment!

Conclusion

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• the FttB/H-rollout will continue, but will also keep the industry busy for years

• local carriers play the prominent role in promoting the deployment – not the incumbent

• mix of access technologies (FttB/H, HFC, VDSL, LTE) will increase available bandwidths significantly

• the demand for 50 Mbit/s and more does not exist today, but will definitely evolve over the next years.

• NGN emerge in the shape of a rag rug or a patchwork blanket – open access is indispensable.

Thank you for your attention! Visit us in the FttH Partner Area P3

Bundesverband Glasfaseranschluss e. V. (BUGLAS)

Am Coloneum 9 | 50829 Cologne (Germany)

Phone: +49 0221 2225608-0 | Fax: +49 0221 2225608-8 Web: http://www.buglas.de | Email: info@buglas.de