development of broadband markets

G.PūrasBroadband markets LT

Development of Broadband markets

Communications Regulatory authority of LithuaniaElectronic communications department

www.rrt.lt

Disclaimer: The views, opinions or positions expressed in this presentation are of my own and do not necessarily reflect the views, opinions or positions of Communications Regulatory authority of Lithuania

2013.08.29, Latvia 1 psl

http://www.rrt.lt/index.php?42151290

http://www.rrt.lt/index.php?42151290


Outline

1. Broadband markets in Lithuania (statistics)

2. New EU initiatives (EC rec.; Regulation)

3. Broadband promotion. Lithuanian approach:- EU context;- Regulatory impact on NGA (main drivers)

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I. Broadband market developments in Lithuania

2013.08.29, Latvia 3 psl

G.PūrasBroadband markets LT 4

Market maturity?

TEO LT, AB

42%

UAB "Omni-

tel"8%

UAB "Bitė Li-

etuva"7%

AB Radijo ir Televizijos centras

7%

UAB "Balticum TV"4%

UAB "C-

gates"4%

Other28%

2008 2009 2010 2011 20120

200

400

600

800

1000

1200

0510152025303540

709.8 796.1 879.6 988.8 1054.3

21.223.9

27.130.9

35.4

The number of internet access subscribers, thousandThe penetration of internet access (per 100 people)

2005 2006 2007 2008 2009 2010 2011 2012

200.3247.6

294.6358.8 378.8 368.5 369.2 370.096

Internet access services market revenues, LTL million

2013.08.29, Latvia


Technologies: towards fibre

2008 2009 2010 2011 2012

15.126

51.703

91.037

127.430149.952148.013

202.847216.653

232.479252.705

FTTH FTTB

2008 2009 2010 2011 2012

23.5%

33.0% 35.0% 36.4% 38.2%

9.1% 6.8%

5.6% 4.6%4.1%

36.9%

29.5%24.2%

20.0% 17.4%

6.3% 6.5%

10.1% 10.8% 12.2%17.8%

20.5% 22.1%

26.0% 26.7%

FTTx CTV networks xDSLWireless communication lines Mobile communications

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Technologies in EU: different story

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DSL (LT)

DSL (EU)


Increasing speed

Data upload Data download

1. Hon Kong 28,52 Mbps 1. Hon Kong 42,41 Mbps

2. South Korea 28,15 Mbps 2. Singapore 36,01 Mbps

3. Lithuania 26,83 Mbps 3. Lithuania 35,06 Mbps

4. Singapore 20,01 Mbps 4. Luxembourg 34,51 Mbps

5. Latvia 18,74 Mbps 5. South Korea 33,73 Mbps

2008

2009

2010

2011

2012

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

57.10%

36.60%

17.30%

10.70%

8.50%

25.20%

37.70%

40.80%

37.50%

34.40%

17.60%

25.80%

12.80%

11.80%

10.40%

0.21

0.306

0.366

0.081

0.094

0.101

to 2 Mbps from 2 Mbps to 10 Mbps from 10 Mbps to 30 Mbps from 30 Mbps to 100 Mbps100 Mbps and higher

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High fibre penetration

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NGA (>30 Mbps) take up

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- Draft EC recommendation on non-discrimination and costing- EC proposal for Regulation on cost saving measures to promote BB investment

II. New EU initiatives

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I. Draft EC recommendation on non-discrimination and costing (latest CoCom draft 2013-05-29)• Non – discrimination

– EoI vs. EoO– Technical replicability– KPIs + auditing– SLGs

• Costing– BU-LRIC– Reusable vs. Non-reusable civil eng. assets– Price band (8-10 EUR for copper ULL)

• Trade-off (EoI + tech./econ. repl. + price constraints)

• Implementation – 2016-12-31

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Copper access in EU

Copper ULL prices are declining…

…but too slow to have significant impact on NGA investments

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II. Regulation on cost saving measures to promote BB investment (2013-03-27)• Objective - to reduce the cost and enhance the

efficiency of deploying high-speed electronic communications infrastructure

• Access to existing physical infrastructure:– all infrastructure to be shared– NRAs to solve disputes

• Transparency:– Single information point (location, size, owner) +12m.– Electronic means (public+6m.; private+12m)– in-site surveys

• Coordination of civil works• Permit granting• In-building equipment

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- Only with regard to the powers of NRA

II. Broadband promotion. Lithuanian approach

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Broadband usage in EU• Super-fast BB (>100

Mbps) is lagging;

• Fixed BB usage (all

speeds) in EU is increasing, but slowly

• Mobile BB is increasing

• Still significant differences persist among the countries

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G.Pūras

BB: Lithuania in EU context (1)

16

Lithuanian case: Wholesale access products are not popularULL: only ~ 500 lines unbundled (0,09 %)

WBBA: only ~ 1,300 wholesale lines used (0,33 %)Alternative operators tend to use their own access infrastructure.


BB: Lithuania in EU context (2)

2013.08.29, Latvia 17Alternative providers (and therefore – their end-users) benefit from being

independent from incumbent.

51% of broadband lines are based on alternative

infrastructure

Source: 15th Implementation report, European Commission, 2009


Incumbent‘s new FTTx lines Alternative new FTTx lines Total new FTTx lines

BB in Lithuania: infrastructure competition

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Share of alternative operators’ investments into FTTx declining.Since 2010 m. ~70% of new FTTx deployment is done by TEO (incumbent)

60% of total FTTx infrastructure is still owned by alternative providers (2011 QIV)

Source: RRT

FTTx is being provided by 57 undertakings in Lithuania.

Duct rental price 1km = 30 EUR/month


Ducts, km

Change, kmAverage duct renting rate is approx. 500 km

per year

Access to the ducts – essential for FTTx investment

2013.08.29, Latvia 19Access to the physical infrastructure was and still is the essential enabler of alternative infrastructure roll-out.

Source: RRT2008 2009 2010 2011 2012

FTTxxDSL

The change of leading broadband technology from xDSL toFTTx occured in 2009 (quite early)


Residential Internet connections

Demand for high speed connections is steadily increasing2013.08.29, Latvia 20

2008 2009 2010 2011 2012

57.10%

36.60%

17.30%10.70% 8.50%

25.20%

37.70%

40.80%

37.50%34.40%

17.60%25.80%

12.80%

11.80%10.40%

0.210.306

0.366

0.081 0.101

100 Mbps and higher

from 30 Mbps to 100 Mbps



to 2 Mbps


Questions…

2013.08.29, Latvia

Thank you!

Giedrius Pūras_________________________________________________________________

Acting head of Price control and Statistics divisionElectronic communications department

Communications regulatory authority of LithuaniaTel. +370-698-56100e-mail: [email protected]

21


BB QoS measurements (1)

1. Providers must state the minimum speed in contracts (mobile BB – usually 0 kbps)

2. Dedicated speed test website:www.matuok.lt

– Similar to SpedTest.net– No single Exchange point in LT, therefore all providers were asked

to allow connecting the RRT server at certain nodes;– Speed test reports can be archived or saved to PC

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Wireless BB quality measurements

3. Wireless broadband speed measurements and publication of results:

– Based on partnership. Currently: 3 MNOs + WiMAx operator;– Commercially available (provided by operator) modems are used; – RRT developed software is used;– Locations: Post offices (one week testing in certain location);– Yearly report published;– Interactive and up to date measurement data available in dedicated

website:

http://epaslaugos.rrt.lt/matavimai/– Open data for third parties’ applications made available in 2013:

http://epaslaugos.rrt.lt/WebServices/2013.08.29, Latvia 23


Termination rates regulation

Pure LRIC results to be applied from 2013 (EC. Rec.)

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CountryTarget Rate (€ct/min.)

NL (OPTA) 1,20BE 1,08FR 0,80IT 0,98ES 1,09UK 0,81


Wireless broadband measurement locations (2012)

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development of broadband markets

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