TNO DSL Seminar_reichinger_final
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Transcript of TNO DSL Seminar_reichinger_final
23.05.2011 TNO DSL Seminar 2011 Page 1
Regulation of NGA in Austria
Kurt ReichingerAustrian Regulatory Authority for
Telecommunications and Broadcasting
The opinions expressed in this presentation are the personal view of the author and do not prejudge decisions of the Austrian regulatory authorities.
23.05.2011 TNO DSL Seminar 2011 Page 2
Agenda The regulator’s dilemma
Life between hard-core SMP and soft law regulation
The Austrian Unbundling market as an example From the ladder of investment concept to accepted products on the market
Virtual unbundling New universal wholesale product … or just one remedy more on the list?
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The regulator‘s dilemma
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It‘s not about incumbent bashing …
Hard-core SMP regulation Market analysis procedure
Definition of relevant markets Analysis of competitive situation Occurrence of significant market power (?) Imposition of appropriate remedies
Regulation often means definition of general conditions or a framework Regulation is more difficult in unknown waters Regulation as an ex ante or ex post procedure
Soft law regulation EC recommendations, e.g. regarding NGA regulation EC general strategies like the Digital Agenda BEREC common positions National topics
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Three tasks … not always easy to fulfil
Safeguarding competition Mandating appropriate wholesale products (remedies) from SMP operator Incentivising OLOs climbing the ladder of investment Allowing sufficient margin for alternative and SMP operator
Promoting innovation Promoting innovation from incumbent operator Promoting innovation from alternative operators
Incentivising investment Making investment scenarios attractive while safeguarding competition But: Investors usually want return not regulation
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The Austrian unbundling market … as an example
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Market definition and analysis
Austrian definition of market 4 (“access to physical network infrastructure”) Included: Metallic loops only (!!) Not included: Fibre, cable, mobile technologies Included as ancillary service: Access to ducts and dark fibre, co-location, …
Results of Austrian market analysis Copper access network of A1 Telekom Austria is „bottleneck resource“ 100% market share of A1 Telekom Austria (Possible) disadvantages for alternative operators – also for broadband roll-out A1 Telekom Austria has significant market power
Now, what remedies to choose?
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Deployment scenarios
Yesterday: Copper only ADSL2+: ~ 16 – 20 MBit/s VDSL@CO: ~ 25 – 30 MBit/s
Today: Copper and fibre FTTC: ~ 30 – 40 MBit/s FTTB: ~ 50 – 80 MBit/s
Tomorrow: Fibre only FTTH: > 100 MBit/s
ADSL2+ / neu: VDSL2
VDSL2Glasfaser
VDSL2Glasfaser
Glasfaser
23.05.2011 TNO DSL Seminar 2011 Page 9
Basic considerations of Austrian decision M 3/09
EC recommendation on NGA regulation (Sep. 2010) Securing investment in infrastructure and roll out
Past and future investment in active and passive infrastructure Both from incumbent and alternative operators
Promoting competition both at the infrastructure and service layers Promotion of competition on both infrastructure and service edge possibly
conflicting
Relaxing regulation where sufficient levels of competition Relaxing regulation on market fully based on regulation may be dangerous Signals of relaxing regulation important for investment decisions
Designing a framework for the transition from copper to fibre
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Basic considerations of Austrian decision M3/09
Economies of scale will be hard to achieve in NGA scenario Both for incumbent operator and even harder for alternative operators Alternative operator roll-out of FTTC/B/H (rather) not expected on a larger scale Classical unbundling at the MDF will become less attractive Sub-loop unbundling never has been a success
Introduction of a new remedy In addition to traditional remedies on unbundling market Keeping alternative operators competitive Providing a substitute wholesale product for classical unbundling Introducing an active product on a passive market Virtual unbundling
European Commission Accepted the new remedy as an intermediary wholesale product
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Basic considerations of Austrian decision M 3/09
Promote alternative operator investment in VDSL@CO VDSL2 from the „Central Office“ (VDSL@CO) allowed as a first step Compensation for frustrated investment by A1 Telekom in case of future FTTx roll-out
Promote alternative operator investment in FTTC/B Increased transparency Better data delivery for FTTC/B-planning Access to ancillary services Duct / dark-fibre backhaul Negotiation possibilities for deploying new infrastructure Request for cabinets
Allow for A1 Telekom Austria investment in FTTC/B No obligatory „spectrum shaping“ under specific conditions Prioritising more advanced technologies VDSL@CO < FTTC < FTTB (< FTTH)
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Traditional (copper-related) remedies
ADSL2+ / neu: VDSL2
Full unbundling of copper line - LLU Sub-loop unbundling of parts of copper line - SLU Co-location (incl. compensation payment when MDF is closed down) Cost orientation Non-discrimination Separated accounts
Unbundling
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Additional „NGA-related“ remedies
Virtual unbundling incl. accompanying measures … see next slides!
Access to backhaul ducts Access to backhaul dark fibre
FTTCFTTB
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Virtual unbundling … active remedy on a passive market
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Virtual unbundling cornerstones (from M3/09)
1. Possibility for a grade of innovation comparable with passive access
2. Highest possible transparency for higher layers
3. Possibility for multicast services
4. Technological neutrality
5. Flexibility for choosing CPE (white list)
6. Service hand-over at MDF (or similar PoP in the NGA)
7. Third-party service hand-over
8. Configuration access for all relevant connection parameters or non-overbooked bandwidth between customer and PoI
9. Obligatory for NGA areas only
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Virtual unbundling implementation rules (from M3/09)
VULL to be offered obligatory in NGA roll-out areas only Approach allows „emptying“ of NGA roll-out areas, i.e. (re)creating areas
without unbundled lines and being solely controlled by the SMP operator Possibility for forced migration from ULL to VULL under the following
conditions Invitation to planning meeting 4 months prior to planned roll-out start Information on roll-out area, technology and planned roll-out date Invitation to submit request for compensation payments for frustrated investments Cost-free migration from ULL to VULL Invitation for co-operation talks Further information on roll-out plan for interested OLOs 2 months before roll-out start Detailed information on roll-out for co-operating OLOs
Alternatively: Spectrum shaping for protection of xDSL services from MDF Same procedure applies for OLO NGA roll-out
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VULL technical concept from A1 Telekom Austria
Bandwidth (HP/LP) Netz ANB
CPE
CPE
CPE
CPE Bandbreite
Bandbreite
Bandwidth
Bandbreite
DSLAMBandbreite
Bandbreite
Bandwidth
Bandwidth
Bandwidth
NetworkOLO
POI
23.05.2011 TNO DSL Seminar 2011 Page 18
VULL Reference Offer
Modular layer 2 bitstream product based on Ethernet technology Access part:
VDSL2 on copper loop with 3 bandwidths to choose from (8/20/30 MBit/s) Individually ordered per customer
Backhaul part: Ethernet with 16 bandwidths to choose from (2 … 800 MBit/s) allowing OLOs to
choose degree of overbooking – even allowing non-overbooked services Ordered per DSLAM
Quality of Service: Service priorisation of Ethernet Frames using p-Bit p=5: Voice / p=4: Video / p=1: Business Internet / p=0: Residential Internet 50% of Link: high priority quality guaranteed / Remainder: low priority quality
Virtual Connections Up to 4 VLANs per customer
23.05.2011 TNO DSL Seminar 2011 Page 19
VULL Reference Offer
VULL services are aggregated for every MDF area connected MDF area (MPoP) comprising several VDSL2 DSLAMs
VULL services are mapped into double-tagged VLAN (S-Tag and C-Tag) allowing to adress customers via Layer 2 Ethernet S-Tag defines specific DSLAM
VLAN-ID 10 … 2009 (i.e. 2000 DSLAMs per handover point) C-Tag defines specific customer
VLAN-ID 100 … 300 (i.e. 200 customers per DSLAM) p-Bit marking defines traffic priority (QoS)
VULL services are handed over to VULL partner on defined PoIs Hand-over is at today‘s MDF locations (i.e. locations with existing collocation and
backhaul facilities)
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VULL Reference Offer
Customer Premises Equipment (VDSL2 Modem/Router) No modem included – to be chosen by OLO Minimum modem requirements defined Modem whitelist with modems tested, being qualified as properly working and
guaranteeing defined service performance parameters
Service hand-over for several DSLAMS at MDF location in NGA roll-out areas 1 GbE and 10 GbE
Service hand-over to third party provider possible Transparency for multicast services Pricing issues
Margin squeeze free
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Critical issues for business grade services
MTU size Current limitations of A1TA DSLAMs regarding maximum frame size (1522 Byte -
customer edge / 1526 Byte - VULL hand-over)
QoS Current limitations regarding frame loss, frame delay and frame delay variation
Layer 2 Control Protocols Current limitations regarding L2CP protocols supported by A1TA DSLAM
Symmetrical bandwidth Limitations due to 998 VDSL2 band plan
23.05.2011 TNO DSL Seminar 2011 Page 22
Pricing issues
Pricing according to FL-LRAIC methodology taking into account the full range of products offered, i.e. NGA and non-NGA products
Risk premium applicable for NGA products No margin squeeze in relation to A1TA retail offerings
Non-NGA
NGA
NGA
8.192 / 768
20.480 / 4.096
30.720 / 4.096
Non-NGA 8.192 / 768
20.480 / 4.096
30.720 / 4.096
NGA
Non-NGA 8.192 / 768
20.480 / 4.096
30.720 / 4.096NGA
NGA
Non-NGA 8.192 / 768
20.480 / 4.096
30.720 / 4.096
23.05.2011 TNO DSL Seminar 2011 Page 23
CPE – DSLAM: bandwidth and monthly fees
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DSLAM – PoI: Bandwidth profiles and monthly fees
Price comparison:
Full LLU: € 5,87 per month
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Summing it up … on a single slide
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Summing it up …
The telecoms landscape is changing – so are regulatory interventions Some of yesterday‘s remedies are not appropriate any longer These remedies have to be phased out with new ones to be carefully
introduced in order to support today’s regulatory intentions Virtual unbundling may be such a new remedy that could even have the
potential to replace several of today’s remedies in a medium to long term perspective, e.g. classical unbundling, classical bit-streaming or leased line terminating segments, …
In summer 2011 VULL is finally expected to be launched in Austria …
23.05.2011 TNO DSL Seminar 2011 Page 27
Regulation of NGA in Austria
Kurt ReichingerAustrian Regulatory Authority for
Telecommunications and Broadcasting
The opinions expressed in this presentation are the personal view of the author and do not prejudge decisions of the Austrian regulatory authorities.
23.05.2011 TNO DSL Seminar 2011 Page 28
VLAN Concept (2/2)
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Prioritisation with p-Bit Marking (1/2)
VULL partner defines associated quality of data frames within bandwidth ordered for a single DSLAM using priority bit marking
p-Bit = 5, 4 … high priority p-Bit = 1, 0 … low priority p-Bit priority: 5 > 4 > 1 > 0
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Prioritisation with p-Bit Marking (2/2)
50% of bandwidth ordered for DSLAM area available for high priority (HP) traffic according to defined service and service-class parameters
Up to 100% of bandwidth ordered for DSLAM area available for low priority (LP) quality as long as bandwidth is not used for HP traffic
Traffic exceeding 50% limit available for HP is discarded (p = 4 discarded before p = 5)
In LP class p = 0 discarded before p = 1 Re-marking of p = 2, 3, 6, 7 to p = 0
23.05.2011 TNO DSL Seminar 2011 Page 31
Defined Service Parameters for VULL