TeleKommunikationsGesellschaft Südwestfalen mbH
02/16/2012
Building a Regional Broadband Network in Public-Private-Partnership FTTH Conference 2012 Munich, Germany Fibre to the Home Council 16th February 2012 Stefan Glusa MA TeleKommunikationsGesellschaft Südwestfalen mbH Steinstraße 27 59872 Meschede Telefon: +49 (0)291 94 1502 Telefax: +49 (0)291 94 1503 eMail: [email protected] www.tkg-swf.de
TeleKommunikationsGesellschaft Südwestfalen mbH
02/16/2012
Hochsauerlandkreis / Südwestfalen Hochsauerlandkreis
1.958,77 km²
largest district in NRW
272.000 inhabitants
12 cities / towns
average: 141 inhabitants/km²
range: 68 - 400 inhabitants/km²
Südwestfalen
cooperation of 5 districts
6.200 km²
1,6 Mio. inhabitants
TeleKommunikationsGesellschaft Südwestfalen mbH
02/16/2012
• German constitution: Artikel 72, Absatz 2, Grundgesetz (GG) • broadband coverage no universal service
living conditions equality
• population decrease from 82 Mio. to 65 -70 Mio. in 2060 • working population decrease from 50 Mio. to 33 - 36 Mio. in 2060
demographic change
• governmental precautionary principle • Social duties of municipal services
services for the public
• high quality infrastructure • decentralized production sites and small / medium “hidden champions”
economic development
Public / municipal interest in FTTH
TeleKommunikationsGesellschaft Südwestfalen mbH
02/16/2012
Bevölkerungsstruktur im HSK Settlements and SMB locations
TeleKommunikationsGesellschaft Südwestfalen mbH
02/16/2012
Invest per home connected (EUR)
Long term FTTH coverage (in %)
• own development • co-operation • public participation
proactive
• negotiations • planning reliability • basic support
stimuli
• competition • serviced anyway • no need to interfere
market
Investment scope
TeleKommunikationsGesellschaft Südwestfalen mbH
02/16/2012
Quelle: TKG, Atene KOM GmbH, 2009
Network design
Core ring PoP (RF) Backbone Access Networks NOC FTTH
TeleKommunikationsGesellschaft Südwestfalen mbH
02/16/2012
Backbone
Backbone (plan)
Feeder (plan)
Link Town/Citynet
Homes passed
Radio coverage (WiMax)
Network expansion Q1/2012
Core network Plan / progress 2012
TeleKommunikationsGesellschaft Südwestfalen mbH
02/16/2012
60% 10% 5%
9%
6% 10% rollout (access) rollout (core) administrative costs OPEX rentals active components
material work
Cost structure (total)
• 80-90% construction work (ext.) • 20-10% material input (TKG)
TeleKommunikationsGesellschaft Südwestfalen mbH
02/16/2012
• DBFO+Maintain (DBFOM)
• DBF+Operate (DBFO)
• DB+Finance (DBF)
• Design/Build (DB)
PPP structures
Operation
Concession
Cooperation TKG property (passive)
Private operations/ investment
Income Allocation Operating Income - Operating Expenses Net Operating Income -lease payment (to TKG) -Debt service
Cash Flow -Preferred return Net Cash Flow Public Share Private Share
Partnership
TeleKommunikationsGesellschaft Südwestfalen mbH
02/16/2012
Funding
TeleKommunikationsGesellschaft Südwestfalen mbH German limited liability company (GmbH)
Total Equity: 5.5 Mio. €
Olpe 1.0 Mio. €
Hochsauerland 1.5 Mio. €
Soest 1.5 Mio. €
Siegen-Wittgenstein 1,5 Mio. €
NetCo (4.5 Mio. €)
OpCo (1.0 Mio €) + additional
5.5 Mio. € shareholder
loan HSK OE SO SiWi …PP
private operators
Data Center
contracts / concessions
shareholder / partner
TeleKommunikationsGesellschaft Südwestfalen mbH
02/16/2012
• City / Town annual budget • Leak tests / sewage drain §61a LWG • Utility / public service company • Cooperative (citizen, companies, banks) • Promotional / development loan
(NRW.BANK) • Subsidies
NetCo (4.5 Mio. €)
OpCo (1.0 Mio €)
RF FTTH VDSL WLL … Interface (S/PRI ?)
Data Center
Access (L2-BSA ?)
Project funding
+ 60-80%
• Mobile backhaul • P2P company connection • Public sites, hospitals,
schools, administative buildings, TETRA / BOS
• misc. „synergies“
+
11.0 Mio. € Initial
Budget
project funding
mix of debt and equity
TeleKommunikationsGesellschaft Südwestfalen mbH
02/16/2012
Example FTTH case
Planning / Proj. Mgmnt.
- 630.000
CAPEX OPEX
ARPU = 10-25 € / Break even 9,3 yr.
0 100% TKG risk:
public sector building
private telco(s) operating
TKG possible
exit
FTTH 300 homes connected
TeleKommunikationsGesellschaft Südwestfalen mbH
02/16/2012
FTTH rollout
TeleKommunikationsGesellschaft Südwestfalen mbH
02/16/2012
Coordination database for civil engineering
• public construction authorities
• countryside highways
• district- & city roadworks
• water-, utility companies
• network operators
• underground work
• important instrument
for continuous
coordination
TeleKommunikationsGesellschaft Südwestfalen mbH
02/16/2012
Technology mix / cooperation with partners
SO
MK
OE
SI
HSK
„Consumers don‘t care about pipes“ „Any provider over any infrastructure“
TeleKommunikationsGesellschaft Südwestfalen mbH
02/16/2012
• “Digital dividend” will not close the broadband gap in rural areas in the long run • Private Telcos “can” only care for about 75% of the market. Remaining quarter too costly. • Public Private Partnership (PPP) with a combination of publicly owned networks and
additional companies’ / private investments = Public Participation Model (PPM) • Extremely project oriented, lots of preparatory work, highly individual planning and roll out
required. Constant public attention and management necessary. • Strongly focused on public NGN investment and property. • Our mission: Enabling private operators to serve underserved areas.
Lessons learned
• No revenue- or payment guarantee needed for private Telcos to operate existing networks • (Very) little demand for TriplePlay in our rural areas (yet, >90% use Satellite TV) • Public investment in a private venture under market conditions = no state aid (MEIP) • > 2.500 customers in > 80 separate networks; Short term expansion potential: 60-75.000 hh • “NBN Co.” also works well as an RBN Co. = Regional Broadband Network Company (Ltd.) • Long-term ROI. Only municipal shareholders able and willing to pre-finance the infrastructure
Results & conclusions
TeleKommunikationsGesellschaft Südwestfalen mbH
02/16/2012
Alright, I‘ll try again next year - you know, one of these days you‘ll wake up and say,
‘Why don‘t I have FTTH?!‘“
There is still a lot to do…
TeleKommunikationsGesellschaft Südwestfalen mbH
02/16/2012
Thank you! Stefan Glusa MA TeleKommunikationsGesellschaft Südwestfalen mbH Steinstraße 27 59872 Meschede Telefon: +49 (0)291 94 1502 Telefax: +49 (0)291 94 1503 eMail: [email protected] www.tkg-swf.de
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