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National Broadband Networks NBN Developments and Key Implementation Considerations
April 19th, 2012
NLA Business Consulting Department
WHY NATIONAL BROADBAND NETWORKS
2 KEY IMPLEMENTATION CONSIDERATIONS
1
3 CASE STUDIES
AGENDA0Agenda
NLA Business Consulting Department
4 CONCLUDING REMARKS
+10%
Broadband penetration
+1.3%
GDP
+2-3%
Employment
Productivity + 5-10%
CO2emission
-5%
Stimulateinnovation
ECONOMICS AND ENVIRONMENTAL …AS WELL AS SOCIAL…ARE THE DRIVERS
1Why National Broadband Networks
NLA Business Consulting Department
Source: Several Consulting Groups
Total investment close to 36 billion Euros over ten years (2010-2020)
It would generate 968,000 incremental jobs541,000 are derived from construction of the network
427,000 job will be generated resulting from enhanced innovation and new business creation
Incremental economic growthNetwork construction would yield additional value added of 33.4 billion Euros
Network externalities 137.5 billion Euros
In total this results in 170.9 billion Euros of additional GDP (0.60 % GDP growth) in Germany
Source: Business Strategy Research, Columbia Institute for Tele-Information (CITI)
1Why National Broadband Networks
IMPACT OF NBN ON GERMAN ECONOMY AND JOB MARKET
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Objectives & Goals
U.S.2010-2020, $7.2B, 100M lines
BrazilPBNL, 7.2B$ in five year time in which 45% is in metro network
France2008-2012 100M, €2.68B
Germany2010-2014 50M, €0.15B, 75% coverage
Spain2007-2010, 100M, $1.42B
Finland2010-2015, €0.2B, 0.2M lines
UK2010-2017, 100M, £ 1.5B, 90% coverage
Poland2011-2013, € 1.58bn
KuwaitMOC, Planning
QatarQtel, National strategic investment, quick start
IranTCI, Billion project, in progress
U.A.E.ET, Leader in ME
Australia2009-2017, 100M, $30B, 93% coverage
Japan1996-2012, 100M, $30B, 100% coverage
Korea2003-2012, 1G, $0.94B, 100% coverage
Malaysia2007-2017, 10M+, $2.2B, 38% coverage
Singapore2009-2015, 1G, $0.7B, 100% coverage
NZ2009-2019, 100M, $1.3B, 75% coverage
Sweden2009-2013, €1B, 1M lines
Denmark2010-2015, €2B, 2M lines
South Africaplanning
Egyptplanning
Argentinaplanning
Greece, Hungary, Bulgariaplanning
Italia, planning
AS SUCH A GLOBAL WAVE OF NBN DEVELOPMENTS IS DEVELOPPING
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1Why National Broadband Networks
Source: Huawei Analysis
Infrastructure
Provider
Vertical integration Passive infra sharing Active infra sharing De-aggregated structure
Integrated
Network
Operator Infrastructure
Provider
Network
Operator
RSP RSP RSP RSP RSP RSPOperator
Operator
Operator
Provider
Provider
Provider
MARKET STRUCTURE(S) TO STRIVE FOR
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2Key Implementation Considerations
Services
Infrastructure
Operator to build NBN with government supports, saved investment by reusing existing infrastructure Investment by both government and operator—Malaysia provides 20% fund to TM.
Government totally invest or subsidy—Qatar supports Qtel for national FTTx.
Set up new entityGov sets up a new entity – Australia NBNCo
Operator sets up a new entity – Singapore Nucleus Connect
Passive Network
Provide Services
Provide Services
Provide Services
Passive Network
Active Network
Provide Services
Services Providers Communication
Provider Infrastructure
Provider
Wholesale Provider Services Providers
Infrastructure Provider
Communication & Service Provider
End-to-End Provider
Passive Network
Active Network
Passive Network
Active Network
2
CONSTRUCTION AND OPERATION MODELS
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Construction Model Operation Model
Provide Services
Active Network
Key Implementation Considerations
Cost analysis decides the demarcation of these technologiesAustralia NBN choose 93% fibre, 4% wireless and 3% satellite tech to reach 100% coverage
Source: Implementation Study for Australia NBN
TECHNOLOGIES SELECTION
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2
Each Technology has its Sweet Spot Investment Analysis
Source: Huawei Analysis
Key Implementation Considerations
Small to Medium Level of investment
Short Term payback (1-2 years)
Higher Risk High Return
Medium Level of investment
Medium Term payback (5-7 years)
Higher Risk Medium/High Return
Huge Investment and sunk costs
Long Term payback (20 years or More)
Low Risk Low Return
2
REASONABLE/SUSTAINABLE ECONOMICAL MODELKey Implementation Considerations
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Provide access to right of ways (e.g. sewers, poles, …) Synchronise civil work to reduce costs and TTM Mandatory fiber pre-cabling for new buildings
Public authority as an anchor tenant Deliver concession, Provide RoWs Subsidies, loan with low/no interest and tax incentives
Invest in part of the value chain (e.g. passive infrastructure) Develop PPP Establish new operator, new market structure
Asymmetrical regulation (e.g. duct access, fiber unbundling, …) Symmetrical regulation (e.g. last drop and in house wiring) Interconnection
Economy recovery package Digital economy plans, financial aid for non-economical areas Intervention of local authorities
Legislation
Investment
Create IncentiveReduce Risks
Regulation
Policy
2
SUPPORTIVE MEASURE(S) TO FOSTER NBN DEPLOYMENT
Content Availability ConvergenceOthers
Source: Huawei Analysis
Key Implementation Considerations
NLA Business Consulting Department
Owner Total Budget:1,581M Services Solutions
Regional Broadband Networks
Regional Marshal Office
957 M Euro Broadband, Distribution
C:2C Networks
DWDM,IP Switching/Routing
BRASNetwork Management
8.4 Initiative SME sector, Non-profit NGO’s
200 M Euro Access NetworkLast Mile GPON, DSLAM, WiMAX, WIFI
8.3 Initiative Local governmentnon-profit NGO’s
364 M Euro Access LinesDSLAM,
Wireless 3G AccessComputers
RuralDevelopment
ProgramCommunies 60 M Euro Access Network
Last Mile GPON, DSLAM, WiMAX, WIFI
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POLAND3Case Studies
Area Owner Services Solutions
Zone 1High
economic impact areas
TM ( has entered into a public-private
partnership (PPP) with the government to roll
out high speed broadband in excess of 10 Mbps in this zone. )
High speed broadband
Multiple broadband technologies simultaneously
Zone 2Other
urban and semi urban
areas
Private initiatives Broadband ADSL , WiMAX
Zone 3 Rural areasSKMM (using Universal Service Provision funds)
Basic telephony
(through fixed and mobile network)
The cellular coverage in these areas will be widened by building more communication
towers funded through USP to facilitate the cellular operators to expand their coverage
to 97% of population
3Case Studies
MALAYSIA
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Over 50 CountriesOver 100 Billion
USA
Speed
2015 2020
50M
100M
23billionUSD/3years
China
Australia
35billionUSD
New Zealand
1billionUSD
Malaysia
3.3billionUSD
Kuwait
500millionUSD/5years
France
18billionUSD/15years
Italy
11billionUSD/10years
Portugal
1billionUSD/3years
Brazil
6billionUSD/5years
NBN Wave
Enhance international position
and influence of the nation
Singapore
1billionSGD
10% increase in BB penetration,
employment rate increased 2-3%
10% increase in BB penetration , 1.3%
GDP increased
Innovation will induce much
revenues
4Concluding Remarks
COUNTRIES DO RECOGNIZE THE VALUES OF NBN…
NLA Business Consulting Department
Source: ARCEP
Density is a Key Variable Heterogeneous Population Distribution
Black/Market driven area
Grey/Risk driven area
White/Policy driven area
4Concluding Remarks
…AS SUCH THE QUESTION IS NOT “WHETHER” BUT “HOW”
NLA Business Consulting Department
Source: FTTH Council Europe
Thank YouCopyright©2011 Huawei Technologies Co., Ltd. All Rights Reserved.
The information contained in this document is for reference purpose only, and is subject to change or withdrawal according to specific customer requirements and conditions.
NLA Business Consulting Department
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