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IDATE DIGIWORLD SUMMIT 2013

BROADBAND NETWORKS AND PUBLIC SECTOR
INVOLVEMENT FROM THE ACTOR'S POINT OF VIEW
Olivier DUROYON
November 20th 2013

COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
THE QUEST FOR BROADBAND CONNECTIVITY:
A WORLD TREND
• There is world-wide consensus in the need for more
broadband connectivity

Because it creates
wealth and jobs

Because people
demand it

With a sense of urgency in some countries
COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
WHAT ARE THE SOLUTIONS?

Technology …
- Spectrum allocation
- Technology efficiency (all-IP networking, LTE overlay)
- Infrastructures

… In response to Public objectives
- Bring more people connected to broadband services with
better quality, more coverage and in a more affordable way!
COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
INNOVATIVE APPROACHES TO FOSTER INVESTMENTS
AND NETWORK DEPLOYMENTS AROUND THE WORLD

• Facing the scarcity of fund and spectrum, innovative
regulatory thinking and investment models emerge in
developing countries:
• Reduce cost through infrastructure sharing and innovative management
of some spectrum bands (DD)
• Attractive investment model compatible with long-term infrastructure
funds criteria
• Leverage technology evolution (IP LTE, bitstream) allowing service
differentiation and competition on top of a collaboratively built
infrastructure

COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
MEXICAN INITIATIVE
• The underlying driver: Grow the Economy

98%
coverage

• Macro-economic indicators are excellent
• With growth as absolute priority, the Mexican reform encompasses : education, transport,
energy …
• For Telecoms, this has been translated to give access to affordable Telecom services to all.

• The way to do it
• Aim: bring mobile Broadband price as close as possible as Mobile Voice price
• How: Reduce the network TCO by 20 times:
• Allocate Digital Dividend
• Generalize a wholesale model
• Use PPP model and push other public supply side initiatives

• Project’s details
• All 700 MHz will be allocated to one wholesaler with stringent coverage obligations
• A lean, flat IP, low cost wireless bitstream factory will be built on top
• A non discriminatory wholesaler who cannot commercialize in the retail market
• Paradigm shift from infra based competition to service-based competition

COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
RWANDA INITIATIVE
• Government drivers

• Demographic boom
• Need jobs and growth as a matter of stability
• Bet on connectivity, knowledge society and ICT services

• The way to do it

• 3 land cables connected to sub-marine cable
• Started by deploying nationwide fiber to municipalities (in 2011)
• Next step is the Access: right of ways, backbone, 100Mhz DD

• Project’s characteristics

• The Government of Rwanda and KT established Infra Co. (olleh Rwanda Networks)
to build 4G LTE nationwide network
• Guarantees wholesale business license based on 4G & beyond technology for 25
years with exclusivity
• Provides total bandwidth of 175MHz
• Second JV to address services, content, usage
• Contributing to solving social problems as an alternative to insufficient social
infrastructure

COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
A FEW CONCLUSIONS

• Paradigm shift to service-based competition, through active wholesale
products, to
- Secure investment
- Bring same services to all
- Foster competition, not only at the retail level but also provide a QoS-based
underlying infrastructure for innovative services like cloud

• Leverage efficiency of new wireless technology LTE
• Need long-term and strong political support

COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.

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BROADBAND NETWORKS AND PUBLIC SECTOR INVOLVEMENT FROM THE ACTOR'S POINT OF VIEW -Olivier DUROYON - Alcatel-Lucent - NGN Funding Executive Seminar - DigiWorld Summit 2013

  • 1. IDATE DIGIWORLD SUMMIT 2013 BROADBAND NETWORKS AND PUBLIC SECTOR INVOLVEMENT FROM THE ACTOR'S POINT OF VIEW Olivier DUROYON November 20th 2013 COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
  • 2. THE QUEST FOR BROADBAND CONNECTIVITY: A WORLD TREND • There is world-wide consensus in the need for more broadband connectivity Because it creates wealth and jobs Because people demand it With a sense of urgency in some countries COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
  • 3. WHAT ARE THE SOLUTIONS? Technology … - Spectrum allocation - Technology efficiency (all-IP networking, LTE overlay) - Infrastructures … In response to Public objectives - Bring more people connected to broadband services with better quality, more coverage and in a more affordable way! COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
  • 4. INNOVATIVE APPROACHES TO FOSTER INVESTMENTS AND NETWORK DEPLOYMENTS AROUND THE WORLD • Facing the scarcity of fund and spectrum, innovative regulatory thinking and investment models emerge in developing countries: • Reduce cost through infrastructure sharing and innovative management of some spectrum bands (DD) • Attractive investment model compatible with long-term infrastructure funds criteria • Leverage technology evolution (IP LTE, bitstream) allowing service differentiation and competition on top of a collaboratively built infrastructure COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
  • 5. MEXICAN INITIATIVE • The underlying driver: Grow the Economy 98% coverage • Macro-economic indicators are excellent • With growth as absolute priority, the Mexican reform encompasses : education, transport, energy … • For Telecoms, this has been translated to give access to affordable Telecom services to all. • The way to do it • Aim: bring mobile Broadband price as close as possible as Mobile Voice price • How: Reduce the network TCO by 20 times: • Allocate Digital Dividend • Generalize a wholesale model • Use PPP model and push other public supply side initiatives • Project’s details • All 700 MHz will be allocated to one wholesaler with stringent coverage obligations • A lean, flat IP, low cost wireless bitstream factory will be built on top • A non discriminatory wholesaler who cannot commercialize in the retail market • Paradigm shift from infra based competition to service-based competition COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
  • 6. RWANDA INITIATIVE • Government drivers • Demographic boom • Need jobs and growth as a matter of stability • Bet on connectivity, knowledge society and ICT services • The way to do it • 3 land cables connected to sub-marine cable • Started by deploying nationwide fiber to municipalities (in 2011) • Next step is the Access: right of ways, backbone, 100Mhz DD • Project’s characteristics • The Government of Rwanda and KT established Infra Co. (olleh Rwanda Networks) to build 4G LTE nationwide network • Guarantees wholesale business license based on 4G & beyond technology for 25 years with exclusivity • Provides total bandwidth of 175MHz • Second JV to address services, content, usage • Contributing to solving social problems as an alternative to insufficient social infrastructure COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
  • 7. A FEW CONCLUSIONS • Paradigm shift to service-based competition, through active wholesale products, to - Secure investment - Bring same services to all - Foster competition, not only at the retail level but also provide a QoS-based underlying infrastructure for innovative services like cloud • Leverage efficiency of new wireless technology LTE • Need long-term and strong political support COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.