Paolo Vigevano. Head of the Broadband Task Force. Minister for Innovation and Technologies. The Role Of Government in Broadband Deployment in Italy

Similar documents
The Future of Broadband Internet Access in Canada

h h e

Brussels, 7 December 2009 COUNCIL THE EUROPEAN UNION 17107/09 TELECOM 262 COMPET 512 RECH 447 AUDIO 58 SOC 760 CONSOM 234 SAN 357. NOTE from : COREPER

Digital Economy and Society Index (DESI) Country Report Latvia

Director General July 30, 2010 Telecommunications Policy Branch Industry Canada 16th Floor, 300 Slater Street Ottawa, Ontario K1A 0C8

Broadband stimulus and the economy Dr. Raúl L. Katz (*) Adjunct Professor, Division of Finance and Economics

Regional Broadband Backbone Networks for Asia-Pacific Information Superhighway

Building a Nationwide Broadband Network: Speeding Job Growth

Europe's Digital Progress Report (EDPR) 2017 Country Profile Lithuania

August 8, 2006 Via

Communications Workers of America Proposals to Stimulate Broadband Investment

Worapat Patram Senior Telecommunication Analyst Interconnection Institute, National Telecommunications Commission

NATIONAL BROADBAND POLICY

An Economist s Guide to Local Loop Unbundling

Auckland Council appreciates the opportunity to comment on the Telecommunication Act Review: Post-2020 Regulatory Framework for Fixed Line Services.

The implementation of a national agenda for ICTs: The Colombian case

TRRC Last-Mile Broadband - Program Guidelines

Galit Wellner Board Member

Brunei Darussalam Statement of the Asia-Pacific ICT Ministers on Building Smart Digital Economy through ICT

Guidelines for the development of new services and applications in the era of the digital economy. Antonio Garcia Zaballos

Telecoms Regulation in Europe Competition in Broadband Services. James Thomson

Unbundling, Investment Incentives, and the Benefits of Competition

INTERNATIONAL TELECOMMUNICATION UNION

REGIONAL I. BACKGROUND

Developing broadband access in Hungary

Edmond BARANES CREDEN-LASER, University Montpellier I Marc BOURREAU ENST, Paris and CREST-LEI

Access to Broadband. Focusing on demand stimulation strategies. Sonia Jorge Consulting Director, Regulation and Policy

Commerce Commission UFB and RBI New Zealand s initiatives for nationwide broadband deployment John Gandy July 2014

The Economic Impact of Telecommunications in Senegal

Fibre to the future PRINCIPLES FOR AUSTRALIA S NATIONAL BROADBAND NETWORK

Digital Economy and Society Index (DESI 1 ) 2018 Country Report Czech Republic

Telecommunications, the Information Society.

Nigerian Communications Commission Delivering broadband for development in Nigeria

Unbundling - is it really necessary?

Distance Learning and Telemedicine Grant Program

North-Western Kuhmo Village Optical Fibre Cooperative

Achieving Broadband Britain - a Partnership model for enabling a Digital Networked Economy

Recommendations for Digital Strategy II

COUNTRY REPORT OF PAKISTAN ON INITIATIVES OF INFORMATION SOCIETY

Digital Economy.How Are Developing Countries Performing? The Case of Egypt

6 Telecommunication Development Sector (ITU-D)

The Value of Creating Simple and Seamless Collaboration

ABCD of broadband in India

Korean National Policies to Close the Digital Divide

INTERNATIONAL CONFERENCE ON INTELLECTUAL PROPERTY, THE INTERNET, ELECTRONIC COMMERCE AND TRADITIONAL KNOWLEDGE

Cook Islands National Information and Communication Technology Policy. July

APT Asia-Pacific Summit on the Information Society. 31 October - 2 November 2000 Tokyo, Japan

COMMUNICATIONS ALLIANCE LTD DIGITAL ECONOMY FUTURE DIRECTIONS CONSULTATION PAPER. Submission

BUILDING INFRASTRUCTURE FOR ICT DEVELOPMENT IN TANZANIA

Development of existing and alternative last mile infrastructure:

Mariusz Czyżak, Director General, UKE Belgrade, April, 2015

Broadband Expansion Ontario s Digital Strategy. Northwestern Ontario Regional Conference September 30, 2010

Europe's Digital Progress Report (EDPR) 2017 Country Profile Ireland

RESEARCH METHODOLOGY

CSIR response to GG 33467: Review of the Universal Service and Access Obligations Framework (USAOs)

MADISON CSD Smart Schools Investment Plan -

ICC policy recommendations on global IT sourcing Prepared by the Commission on E-Business, IT and Telecoms

233 respondents from the Sunshine Coast business community told us about their internet needs as part of the #SPEEDITUP campaign.

The Creation of an E-Zone for Europe s Innovators, Entrepreneurs and Investors. 22 December 2014

TESTIMONY OF STEVEN J. SAMARA PRESIDENT PENNSYLVANIA TELEPHONE ASSOCIATION SENATE CONSUMER PROTECTION AND PROFESSIONAL LICENSURE COMMITTEE

Yannis Caloghirou. einfrastructures: The future of the Information Society. EU einfrastructure initiative Athens, June

The spirit of Trinidad and Tobago s Connectivity Agenda is captured in the following values:

COMMONWEALTH JOURNAL OF COMMERCE & MANAGEMENT RESEARCH SOCIAL AND ECONOMIC IMPACT OF TELECOM SECTOR IN INDIA: A CASE STUDY OF BROADBAND SERVICES

GUIDELINES OF ENTREPRENEURSHIP FOR INDIAN YOUTH

Local Loop Unbundling: An update

Measuring the Information Society Report Executive summary

Volunteering Australia Summary Analysis of Key Federal Budget Measures May 2017

Europe's Digital Progress Report (EDPR) 2017 Country Profile Malta

Connecting Australia. Changing the way we work: an economic study into how we work, live and connect.

Regulation, competition and infrastructure investment: an evolving policy

Ending digital exclusion: Why the access divide persists and how to close it

SUBMISSION TO THE AUSTRALIA 2020 SUMMIT STIMULATING INNOVATION IN THE ICT SECTOR

Telefónica vision around EU Industrial Policies

ICT Regulation in the Digital Economy

STRATEGIC BROADBAND ROADMAP

2185 Rayburn House Office Building 241 Cannon House Office Building Washington, DC Washington, DC 20515

SCOTTISH ENTERPRISE REGIONAL AND SME INVESTMENT AID SCHEME

MADISON CSD Smart Schools Investment Plan - HTS November 2016

PACIFIC ISLANDS TELECOMMUNICATIONS ASSOCIATION

APT Ministerial Conference on Broadband and ICT Development 1-2 July 2004, Bangkok, Thailand

PROPOSAL FOR FREE WIFI TO ASSIST IN THE ACHIEVEMENT OF THE NATIONAL DEVELOPMENT PLAN

Lessons from Korea. Asian Tiger Capital Partners. November

The Benefits of Broadband

The Evolution of the Conference Room and the Technology Behind it

General Facts. Telecommunications Development Fund in CHILE. Enhancing Rural Connectivity August Networks along the Country

A PROPOSED PROTOTYPE OF COOPERATIVE MEDICAL TREATMENT SYSTEM FOR HOSPITALS IN GCC COUNTRIES

Digital Economy and Society Index (DESI) Country Report Hungary

STRATEGIES FOR BROADBAND DEVELOPMENT: access and adoption

COHERENCE for DEVELOPMENT Better Policies for Better Lives

Madison County. Needs Assessment. DESIGN NINE broadband architecture + engineering. Telecommunications Needs Assessment and Demand Aggregation

Opportunities of ICT sector. The Ministry of Information Technologies & Communications Ms. Dona ŞCOLA, Deputy Minister

International Telecommunication Union TRENDS IN TELECOMMUNICATION. reform 2004/05 LICENSING IN AN ERA OF CONVERGENCE. Summary

Factors and policies affecting services innovation: some findings from OECD work

Key development issues and rationale for Bank involvement

Plan of Action for the Information Society in Latin America and the Caribbean elac 2007

Introduction to the USDA and Overview of Rural Utilities Service Programs

GRANTS & INCENTIVES. Funding Innovation & Growth. March 28 7, 2018 PRESENTED BY RICHARD BURDENIUK

The Importance of broadband services in lifelong learning in the rural areas

the vision becomes action e- trikala LOGO e-trikala e-services for the citizens

Ministerial declaration of the high-level segment submitted by the President of the Council

Transcription:

Paolo Vigevano Head of the Broadband Task Force Minister for Innovation and Technologies The Role Of Government in Broadband Deployment in Italy Broadband: Infrastructure, Applications and Use Joint WP TISP/IE Workshop OECD, Paris 5 December 2001 1

The definition of broadband relates to different components: infrastructure, contents, services and applications, a context which is in constant evolution. Broadband can be defined as the technological environment which permits the use of digital technologies right up to the highest levels of interactivity. Technological environment Digital technologies Interactivity Applications Technological environment Contents Services Applications Infrastructures Contents Services Infrastructures The evolution Digital of technologies digital technologies is determined by the request for bandwidth for applications and innovative services. Up until now, bandwidth requirements have been limited to hundreds of Kbps. Bandwidth in terms of Mbps will be required in the short to medium term. Businesses and public administration are already at the point where their bandwidth needs to run to Mbps, a capacity that will have to increase in the future. Real bidirectionality Interactivity The possibility of the user (private, firms and PA) creating and publishing services Real bi-directionalness and applications. The possibility of the user (private, firms and PA) creating and publishing services and applications. 2

Forecasts for the worldwide evolution of broadband services up until 2010 underscore the interrelation between available capacity, applications diffused and market conditions. 2000 2000-2002 2000-2003 2004 + 2010 Bandwidth 128 kbs 384 kbs 2 Mbs 10 Mbs 30 + Mbs Applications Phase 1 Low quality video conferencing (< 35 frames per second) Phase 2 Audio streaming Data streaming Basic video Streaming and video conferencing (<384 kbs) Phase 3 High quality video streaming Basic desktop video conferencing Complex graphics and animation Phase 4 Broadcast and multicast streamed media (audio, video and data) High quality desktop video conferencing High definition TVquality video conferencing Phase 5 Virtual conferencing (holographic) Virtual reality Total immersion video Market Limited use of digital media due to speed and cost restrictions Audio-video applications increasingly employed for simple data delivery Media driven interaction Wide adoption of high-quality audiovideo applications for corporate communications: real time media Evolution of digital media in the direction of virtual reality interaction. 3

Broadband deployment becomes possible through an evenly paced growth of services and infrastructures Present Situation Services, contents and applications Services, contents and applications are developing more slowly than predicted. Current procrastination risks creating a vicious circle. In such a situation, services are not developed until there is demand and yet demand waits to latch on to available services in order to take off. Infrastructures The infrastructure market slows down development through the uncertainty of demand for services and applications Trying to keep a step ahead in creating infrastructure does not necessarily guarantee an immediate return on investment. Evolution Services and infrastructures must develop at an even pace. Demand for services and infrastructures is both the main input in the service/infrastructure system and a factor that has to be sustained by the system. Bandwidth requirement resulting from this development will sustain the evolution of infrastructures. The deployment of infrastructures and the development of services, contents and applications should progress at an equal rate, thus creating a virtuous circle. 4

The task force definition sums up the problems and potential of broadband take up, providing pointers for government policy BROADBAND Services Infrastructure System Citizens/ Consumers Services, Contents and Applications Business Sector policies and indirect interventions Definition Background: Digital Literacy Interventions in the form of regulation and monitoring Public Administration Infrastructures Backbone Citizen Distribution Network Sector policies and indirect interventions Access Network Sector policies and direct interventions 5

Unbundling today First phase sites situation up until 15 November 2001 Clients 9 million 7.8 million 7.2 million Contestable Clients sites 471 405 376 2,2 million 117 600 thousand 32 sites requested made available by TI delivered to OLO fitted out by OLO with ULL orders Telecom Italia sphere of activity OLO sphere of activity 86% of sites requested in the first phase have been made available and 80% have been delivered. They are already in a position to be fitted out and client orders can now be sought. Source: TELECOM Italia 6

Access network: the unbundling is a priority which greatly influences broadband diffusion Technologies Players Urgency Backbone network Fibre optic (primarily) Copper (residual) Telecom Italia Interoute Edisontel E-Via Albacom Wind Infostrada Others Not a short-term necessity Excess infrastructure capacity New operator networks more advanced and efficient. Citizen distribution network Fibre optic Copper Telecom Italia e-biscom Edisontel Albacom Wind Atlanet Others Not a short-term necessity Fibre optic needed for mediumterm use Excess capacity and duplication Access network Copper x DSL (all Telecom Italia network) Fibre optic Other technologies* Telecom Italia (copper) e-biscom (fibre) Other operators (copper through local loop unbundling) Telecom Italia s copper is of a good quality. However maintenance costs are very high. A real competition on the market for copper is not yet developed. xdsl performance for very high speed has not been fully tested. Optic development is required in the medium to long-term. Key infrastructure problems * Satellite or Wireless Local Loop can offer an alternative on the access network, reaching areas not covered by copper and fibre optic 7

Policy in a general framework of indirect government intervention can be pursued along five lines. GOVERNMENT POLICY LINES Development of infrastructures and technologies Boosting broadband demand and supply The diffusion of digital services Regulation Monitoring OBJECTIVES OBJECTIVES OBJECTIVES OBJECTIVES OBJECTIVES Ensure the availability of broadband access, and promote the development of better technical conditions for users on a national level at an affordable price. Financial incentives for those willing to invest in broadband Aggregate public demand (e-procurement) Create band demand among firms and citizens through the development of digital services Raise awareness concerning the benefits on offer from broadband Bridge the technological literacy gap and reduce skills shortage Reduce the different kinds of the digital divide Boost competition Stop possible monopolies which may damage the market Monitoring activities are essential to assess the development of broadband and the actual benefits of the interventions 8

Policy lines: sustain broadband demand and supply Tax relief and investment Demand aggregation Development of digital services Incentivi Fiscal incentives fiscali su for lavori civil civili, works, hardware, software, training, formazione, integrazione integration of tecnologie/contenuti technologies/contents sotto in the forma of: di: Posticipo Deferred VAT pagamento payment IVA Detassazione Detaxation (Tremonti utili (Tremonti Act II) bis) Agevolazione Tax relief brought su riporto forward a nuovo from delle previous perdite losses pregresse Soppressione Elimination of concession contributo ex fee canone (2,5%) concessione (2,5%) Bonus Tax bonus fiscale for all utente the final user finale Sviluppo Development e aggregazione and aggregation domanda of di band banda demand espressa from: da: Scuole Schools Ospedali Hospitals Uffici Post offices Postale Università Universities Legal Uffici Giudiziari offices Etc. Ecc. Use of the e-procurement model e-learning / distance education e-health telelavoro e-work e-security 9

The Government role for sector specific programmes Interventions to raise awareness Interventions for training Interventions for diffusion Bridge the dual digital divide by providing information on the benefits of broadband. Training centres (computer driving licence) Create kiosks in public offices as well as private places with simplified guidance to broadband technologies Digital literacy for educators Multimedia incentives e-governance Support of public and private education and life long learning through the adoption of broadband technology Offer incentives for private and public collaboration to create pilot projects which will stimulate broadband contents production Form a closer relationship between citizens and institutions by taking advantage of the interactive and multimedia aspects of broadband 10

Policy lines: regulatory interventions. The authority must examine certain crucial features of broadband diffusion in Italy Problem of possible market dominance by one incumbent for international access: raised prices with a block on competition Competition Authority Foster competition to avoid essential facility or bottle neck monopoly Increased transparency to keep the calculation of incumbent costs in check, and make sure charges for Local Loop Unbundling are calculated on the basis of costs Communication Authority Revision the regulations for rights of way, zoning and building codes by local authorities. Local restrictions discourage entrants to roll out advanced broadband services on a timely basis. 11

Policy lines: Tools for monitoring Suitable monitoring instruments are required to check and assess the effectiveness of interventions Data regarding the quantity and quality of development and forecasts of the diffusion of broadband infrastructure should be examined: - on a territorial basis - for the type of technology used Monitoring will also have to comprise quantity and quality data on the type, consistency and diffusion of the supply and demand of contents and services. Mainly private operators are to be involved in the creation of such instruments 12