Brussels 2015 DG Connect Seminar

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Fiber Wheel by Robert [CC-BY-SA-2.0] Niederösterreichische Glasfaserinfrastruktur Gesellschaft mbH Broadband Strategy 2030 of Lower Austria Providing a sustainable and affordable broadband connectivity in rural areas. CONNECTED COMMUNITIES "Mutual Learning" seminar 26 June 15 - Brussels DI Dr Igor Brusic

Transcript of Brussels 2015 DG Connect Seminar

Page 1: Brussels 2015 DG Connect Seminar

Fiber Wheel by Robert [CC-BY-SA-2.0]

Niederösterreichische Glasfaserinfrastruktur Gesellschaft mbH

Broadband Strategy 2030 of Lower Austria Providing a sustainable and affordable broadband connectivity in rural areas.

CONNECTED COMMUNITIES

"Mutual Learning" seminar

26 June 15 - Brussels

DI Dr Igor Brusic

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nöGIG | Dr. Igor Brusic | 2015-06-24 [email protected] | +43-2742-9000-19770 | Niederösterreichring 2, Haus B, 3100 St. Pölten, Austria

Our mission

. build public fiber access infrastructure

in rural areas of Lower Austria

. lease the infrastructure to a neutral active operator

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nöGIG | Dr. Igor Brusic | 2015-06-24 [email protected] | +43-2742-9000-19770 | Niederösterreichring 2, Haus B, 3100 St. Pölten, Austria

The

Niederösterreichische Glasfaserinfrastruktur GmbH*

is a 100% subsidiary of and has

been authorized by to establish a

sustainable

broadband infrastructure in Lower Austria!

* Lower Austrian Fiber Infrastructure Ltd.

We are ...

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nöGIG | Dr. Igor Brusic | 2015-06-24 [email protected] | +43-2742-9000-19770 | Niederösterreichring 2, Haus B, 3100 St. Pölten, Austria

What‘s our approach

1. Having an infrastructure goal (connecting buildings with

fiber) and not a broadband goal (30, 50, 100 Mbps)

2. Linking a professional team of experts (financial, technical,

regulatory, legal, tendering) with local authorities

(construction, water, data) and municipalities

3. Thinking and acting BIG (regional areas, >100M EUR)

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nöGIG | Dr. Igor Brusic | 2015-06-24 [email protected] | +43-2742-9000-19770 | Niederösterreichring 2, Haus B, 3100 St. Pölten, Austria

Thinks you have to take care of …

Efforts of persuasion towards the politics with great support of the Broadband Coordination of Baden-Württemberg (Germany)

Well considered implementation level municipal level is to small, existing regional coalitions of municipalities much better

Separating the layers focusing on infrastructure but don’t start roll-out without pre-contract

Build up the right financial model at the beginning of the project, not in the middle

Long-term thinking, commitment and endurance as for any strategic project

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nöGIG | Dr. Igor Brusic | 2015-06-24 [email protected] | +43-2742-9000-19770 | Niederösterreichring 2, Haus B, 3100 St. Pölten, Austria

It‘s not broadband…

… it‘s all about

infrastructure

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nöGIG | Dr. Igor Brusic | 2015-06-24 [email protected] | +43-2742-9000-19770 | Niederösterreichring 2, Haus B, 3100 St. Pölten, Austria

Contact

DI Dr. Igor Brusic phone +43 2742 9000 19767

mail [email protected]

web https://noegig.at

nöGIG Niederösterreichring 2, Haus B 3100 St. Pölten, Austria

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nöGIG | Dr. Igor Brusic | 2015-06-24 [email protected] | +43-2742-9000-19770 | Niederösterreichring 2, Haus B, 3100 St. Pölten, Austria

The province of Lower Austria

1.6 Mio people

85 people/km2

573 municipalities

25 districts

750K households

80K SMEs

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nöGIG | Dr. Igor Brusic | 2015-06-24 [email protected] | +43-2742-9000-19770 | Niederösterreichring 2, Haus B, 3100 St. Pölten, Austria

current situation >2 Mbit/s

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nöGIG | Dr. Igor Brusic | 2015-06-24 [email protected] | +43-2742-9000-19770 | Niederösterreichring 2, Haus B, 3100 St. Pölten, Austria

current situation >30 Mbit/s

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nöGIG | Dr. Igor Brusic | 2015-06-24 [email protected] | +43-2742-9000-19770 | Niederösterreichring 2, Haus B, 3100 St. Pölten, Austria

current situation >100Mbit/s

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nöGIG | Dr. Igor Brusic | 2015-06-24 [email protected] | +43-2742-9000-19770 | Niederösterreichring 2, Haus B, 3100 St. Pölten, Austria

current situation FTTH/FTTB

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nöGIG | Dr. Igor Brusic | 2015-06-24 [email protected] | +43-2742-9000-19770 | Niederösterreichring 2, Haus B, 3100 St. Pölten, Austria

Targeted Objectives

Sustainable, reliable & symmetric

broadband connectivity

with extreme

low latency and high capacity

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nöGIG | Dr. Igor Brusic | 2015-06-24 [email protected] | +43-2742-9000-19770 | Niederösterreichring 2, Haus B, 3100 St. Pölten, Austria

Further development

Today only fiber connectivity achieves

the targeted objectives.

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nöGIG | Dr. Igor Brusic | 2015-06-24 [email protected] | +43-2742-9000-19770 | Niederösterreichring 2, Haus B, 3100 St. Pölten, Austria

Further development

Today only fiber connectivity achieves

the targeted objectives.

private market

private market

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nöGIG | Dr. Igor Brusic | 2015-06-24 [email protected] | +43-2742-9000-19770 | Niederösterreichring 2, Haus B, 3100 St. Pölten, Austria

Further development

Today only fiber connectivity achieves

the targeted objectives.

private market

private market

market failure

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nöGIG | Dr. Igor Brusic | 2015-06-24 [email protected] | +43-2742-9000-19770 | Niederösterreichring 2, Haus B, 3100 St. Pölten, Austria

How to fix the market failure?

European Commission

Guide to High-Speed

Broadband Investment Rel. 1.1 – 22 Oct. 14.

Three-layer open model (3LOM)

Strictly separating the role of physical

infrastructure provider, network provider

and service provider

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nöGIG | Dr. Igor Brusic | 2015-06-24 [email protected] | +43-2742-9000-19770 | Niederösterreichring 2, Haus B, 3100 St. Pölten, Austria

Costs and where does the money come from?

Physical infrastructure provider:

public company

Top-down calculation done by

next.kom GmbH (Germany)

Total Investment of 1.03 Billion EUR

equity 261M EUR

cumulated debt financing 653M EUR

Prerequisite: Take-rate 40%

Envisaged funding by country, EU,

institutional and private investors and

commercial banks.

Supported by subsidies from BMVIT

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nöGIG | Dr. Igor Brusic | 2015-06-24 [email protected] | +43-2742-9000-19770 | Niederösterreichring 2, Haus B, 3100 St. Pölten, Austria

3LOM – seperating the roles

network provider (wholesale only)

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nöGIG | Dr. Igor Brusic | 2015-06-24 [email protected] | +43-2742-9000-19770 | Niederösterreichring 2, Haus B, 3100 St. Pölten, Austria

wholesale only network providers

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nöGIG | Dr. Igor Brusic | 2015-06-24 [email protected] | +43-2742-9000-19770 | Niederösterreichring 2, Haus B, 3100 St. Pölten, Austria

… offering their services in Austria

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nöGIG | Dr. Igor Brusic | 2015-06-24 [email protected] | +43-2742-9000-19770 | Niederösterreichring 2, Haus B, 3100 St. Pölten, Austria

Piloting the 3LOM concept

Infrastructure company (nöGIG) founded in Jan 2015

Proof-of-concept in 5 regions 5M EUR funding

Implementation in 2015 and 2016

approx. 3.000 FTTB/FTTH connections

Additional 25M EUR in approval

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nöGIG | Dr. Igor Brusic | 2015-06-24 [email protected] | +43-2742-9000-19770 | Niederösterreichring 2, Haus B, 3100 St. Pölten, Austria

Targets of the pilot

. Establish processes for planning, building and

maintaining passive infrastructure

. Build standardized passive infrastructure

. Introduce asset and contract management

. Exploit synergies in municipal services (road, water,

construction, geo-data management, …)

. Establish high quality documentation

. Apply for funding (province, state, EU)

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nöGIG | Dr. Igor Brusic | 2015-06-24 [email protected] | +43-2742-9000-19770 | Niederösterreichring 2, Haus B, 3100 St. Pölten, Austria

We can't solve problems by using the same kind of thinking we used when we created them.

Albert Einstein

We don’t have a broadband

but an infrastructure problem!