We aren't happy in Lebanon with current Internet and Data services. Why? Who is to blame? And what can we do about it?

1. Cedarcom views
Cedarcom views
on
true Broadband Lebanon
and how to get there
and how to get there
SAMENA
SAMENA
April 29th 2010

2. ARE WE HAPPY WITH CURRENT
INTERNET & DATA SERVICES?
NO!
• Why?
• WHO IS TO BLAME?
• WHAT DO WE DO?
WHAT DO WE DO?

3. Current Status
Current Status
• Lack of true Broadband on DSL or Wireless
– Nominal Speed of 1 Mbps or less
– Very Low Effective Speed – 128 Kbps 2 Mbps
– Very High Tariffs to Consumers & Low QoS!
– Very High BW costs $2700/E1
y g
• Strong Illegal Market (size at least comparable
to legal market)
to legal market)
• Unfair Competition Practices
• R l t
Regulatory uncertainties
t i ti

4. Current Status /2
Current Status /2
• Customers are unhappy with their broadband
experience
• Public perception is that broadband is going
nowhere & that it is the DSPs/ISPs fault!
nowhere & that it is the DSPs/ISPs fault!

5. The way moving forward to
ACHIEVE true Broadband
1. Define Broadband (In 2 flavors – Wireless & Wired/FTTx)
Define Broadband (In 2 flavors Wireless & Wired/FTTx)
– Speed in Mbps
– Capacity in GB
2. Define our Country’s Vision 2010 – 2015 – 2020
– Tax generator or GDP growth catalyst?
T t GDP th t l t?
– Legal right?
– Geographical availability?
3. Offer incumbent operators the “enablers” to
achieve the Broadband Vision

6. The CURRENT MARKET LANDSCAPE
The CURRENT MARKET LANDSCAPE
SERVICES & Mobile Fixed Mobile Fixed Data Internation International In‐ License Fee License Fee
Infrastructure Voice
Voice Voice
Voice Data wireless al Voice
wireless al Voice Data
Data country on Voice & on Mobile
country on Voice & on Mobile
/copper Gateway Gateway Fiber Fixed Data Data
MIC1 & MIC 2 Y N N (GPRS is N Y N N None None
not BWA)
MoT/Ogero N Y N Y Y Y Y None None
DSPs & ISPs N N Y Y (FBWA & N N N 20% RS + 20% RS +
ADSL) 100 mil 100 mil
No. of Camps 1 Camp, 2 1 Camp, 1 1 Camps, 4 2 Camps, 5 2 Camps, 3 1 Camp, 1 1 Camp,
No of Camps 1 Camp 2 1 Camp 1 1 Camps 4 2 Camps 5 2 Camps 3 1 Camp 1 1 Camp
& Operators Operators Operator Operators Operators Operators Operator 1
offering a (2 MICs) (MoT) (4 DSPs) (MoT, 4 (2 MICs, (MoT) Operator
service DSPs) MoT) (MoT)

7. Consultant Views ‐ 1
• A recent report by McKinsey & Company
noted that “mobile broadband is uniquely
d h “ bil b db d i i l
positioned to stimulate economic growth and
welfare in areas that lack adequate fixed‐line
lf i h l k d fi d li
broadband infrastructure.” McKinsey
estimates that “a 10 percent increase in
i h “ 10 i i
broadband household penetration delivers a
boost to a country’s GDP that ranges from 1.0
b ’ GDP h f 10
percent to 1.4 percent.”

8. Consultant Views ‐ 2
• Demand for mobile broadband products and services are, as Cisco
characterizes, “hard to overestimate.” Cisco forecasts that globally,
mobile data traffic will double every year through 2013, increasing 66
mobile data traffic will double every year through 2013 increasing 66
times between 2008 and 2013. According to Cisco, the mobile data
traffic footprint of a single mobile subscriber in 2015 could very well be
450 times what it was in 2005.
• The amount of spectrum required by operators to meet the new
p
broadband imperatives: ITU undertook to determine how much
spectrum would be needed per country in the years 2010, 2015 and
2020.

9. The way moving forward to
ACHIEVE true Broadband ‐ 2
1. Broadband Defined:
Speed in Mbps Capacity in GB
Wireless Broadband 10 Mbps 12 GB to Unlimited
Fixed/DSL
i d/ Up to 20 Mbps
b 12 GB to Unlimited
li i d
FTTx Up to 100 Mbps 50 GB to Unlimited
2. Broadband Vision 2010 – 2015 –
2 B db d Vi i 2010 2015 2020
– GoL stated the vision that Broadband is a “CATALYST” for the
economy, not a “CASH COW” source for the treasury.
– Broadband delivery through wireless and wireline (copper,
FTTx)
– Open multiservice environment (internet, VoIP, IPTV, data, ...)
Open multiservice environment (internet VoIP IPTV data )

10. The way moving forward to
ACHIEVE true Broadband ‐ 3
– B d li
Broad license (spectrum, national and International
( t ti l dI t ti l
fiber) to all incumbent operators
– Rollout Obligations Service Availability example:
Rollout Obligations, Service Availability example:
• By 2011 in all cities with population larger than 10,000
• By 2014 in all cities with population larger than 3,000
By 2014 in all cities with population larger than 3 000
– Legal right as of 2020 at speeds of at least 2 Mbps
– New entrants
New entrants
– Need for TRA to take hands Off approach and not
impose an artificial market segmentation
impose an artificial market segmentation

14. Finland Broadband is a Human Right
Finland Broadband is a Human Right
• Starting July 2010, every person in Finland will have the
right to a one megabit broadband connection, says the
right to a one‐megabit broadband connection says the
Ministry of Transport and Communications.
• Finland is the world's first country to create laws
guaranteeing broadband access.
• The government had already decided to make a 100 Mb
broadband connection a legal right by the end of 2015. The
b db d ti l l i ht b th d f 2015 Th
Ministry announced the new goal as an intermediary step.
• No household deserves to be "farther than 2 kilometers
No household deserves to be farther than 2 kilometers
from a connection capable of delivering broadband Internet
with a capacity of at least 100 megabits of data a second
by 2015”
b 2015”

15. Finnish government promises fast
broadband by 2015
b db d b
Thursday, 18 September 2008
• S i Li dé (
Suvi Lindén (cons), the communications minister, said "The
) th i ti i it id "Th
development of that infrastructure is to be guaranteed in a way that
all members of the public and companies, regardless of location, will
have an opportunity to use information society services,”.
• Harri Pursiainen, the permanent secretary at the transport and
communications minister, said the 100 Mbit/s target was modest,
communications minister, said the 100 Mbit/s target was modest,
adding households in Helsinki would have gigabit‐range speeds at
their disposal come 2015. “Data connections are no longer
entertainment but a necessity
entertainment but a necessity”.
• “Regional, equal communications infrastructure will not come about
without state action.“ The government said it would discuss the
funding of its broadband program over the course of the autumn”.

16. Germany
Germany ‐ 1
• With the recently announced German
With the recently announced German
Broadband Strategy, which has an initial target
to have 100 percent of households served
to have 100 percent of households served
with at least 1 Mbit/s broadband access by
the end of 2010.
the end of 2010
• The government wants the 800 MHz spectrum
to be used for closing broadband coverage
to be used for closing broadband coverage
gaps in remote & rural areas.

17. Germany ‐ 2
y
An Ambitious Broadband Strategy in Germany ‐ March 9, 2009
• Nov 2009, the German government outlined its definition of
h li d i d fi i i f
broadband Internet access, raising the threshold for Internet
connection speeds from 384Kbps to 1Mbps and setting the
connection speeds from 384Kbps to 1Mbps and setting the
stage for an ambitious universal rollout by the end of 2010.
• This is the first part of the government’s two‐phased
strategy to deliver 50Mbps broadband connections to 75%
of German households by 2014.
• Th G
The German model encourages collaboration between the
d l ll b i b h
public and private sectors — the government will deliver
services in regions where private operators can t.
services in regions where private operators can’t.

18. Spain
p
MADRID, Nov 17 2009 (Reuters)
Spanish citizens will have a legal right from 2011 to be able
to buy broadband internet of at least one megabyte per
second at a regulated price wherever they live, the
country's industry minister said on Tuesday.
The telecoms operator holding the so‐called "universal
service" contract would have to guarantee it could offer
i " t t ld h t t it ld ff
"reasonably" priced broadband throughout Spain.

19. Broadband a Right in Lebanon or
other Arab Countries?
other Arab Countries?
1. What prohibits Lebanon from adopting an
aggressive futuristic strategy to make Broadband a
Human Right in Lebanon or other Arab Countries?
NOTHING! Just the will.
2. Is it realistically achievable by 2015?
Is it realistically achievable by 2015?
Yes!
3. Where do we start?
3 Wh d t t?
Proper licensing, spectrum, FO, fair
competition!

20. URGENT Action Points to bring Lebanon to a
true Broadband Nation
B db d N i
• Long Term License to Incumbent DSPs, including in‐
g g
country & international fiber to incumbent DSPs. (in line
w/ Telecom Policy Paper)
• Assign Spectrum to incumbent DSPs that allows them to
offer true advanced broadband services. That means at
least 40 MHz is required:
least 40 MHz is required:
• 40 MHz on 2.3, or
• 40 MHz on 2.5
FINLAND’S POLICY THAT BROADBAND IS A HUMAN RIGHT TO
EACH FINNISH. THEIR AUCTION IS PROOF THAT OPERATOR
SPECTRUM NEEDS TO OFFER TRUE BROADBAND IS 40 AND 50
MHZ. Why can’t Lebanese have similar rights?

21. A humble message to all Regulators
A humble message to all Regulators
• Build it & they will come?
ld h ll
• “Give us a license & we will
Give us a license & we will
build it”

22. A humble message to all Regulators
A humble message to all Regulators ‐ 2
• “Even if you don’t give us a long
Even if you don t give us a long
term license, we will build it”
–Believe in country!
–Believe in the rights of individuals
–Believe in the rights of individuals
to have Broadband services!

23. Thank you!
Th k !
Imad Tarabay
I dT b
Chairman / CEO
Cedarcom‐Mobi Group
C d M bi G
imt@cedarcom.net