Moving Towards a Very High Speed Europe Eicta Position on Next Generation Access (NGA)
Access to NGA Networks: New Wholesale Access Products
Transcript of Access to NGA Networks: New Wholesale Access Products
ACCESS TO NGA NETWORKS:
NEW WHOLESALE ACCESS PRODUCTS
EaP Meeting, June 2011
Trakai, Lithuania
Jorge Infante
CMT - International Department
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INDEX
1.The context for NGAs regulation
2. EC Recommendation for NGAs
3. New wholesale access products for
NGAs
4. Case study: Spain
Market 4: Ducts Access, In-building wiring
Market 5: Wholesale broadband Access
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CONTEXT FOR NGAs REGULATION
THE CONTEXT FOR NGAs REGULATION
1. Migration to Next Generation Networks
Substitution of copper by fiber
Evolution to IP and separation of networks and services
High bit-rate application (IPTV, HDTV, video streaming, etc.)
2. Interplatform competition
Docsys 3.0 vs FTTX
3. Cost savings/investments
A single platform for all services.
Reduction of access points (less access switches)
High barriers for passive infrastructure deployment
4. Different technological architectures with different implications
POINT TO POINT VS. POINT TO MULTIPOINT
FTTH, FTTC, FTTB, FTTN
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THE EC RECOMMENDATION ON NGAs
REGULATION
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EC RECOMMENDATION ON ACCESS TO NGAs
September 2010: European Commission Recommendation on
regulated access to Next Generation Access Networks (NGA)
One of the key tools devised by the EC to fulfill the objectives
established in the EU Digital agenda.
It sets a common framework for NGAs regulation along the EU.
A lot of discussion in the previous versions. Criticism from NRAs: Too
prescriptive.
NRAs obliged to take “outmost account”. Departures to adapt to
national context need to be justified.
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Encourageinvestment in
NGAs
Safeguardefficient
competition
Ensure a levelplaying field in theEU single market
Balance
EC RECOMMENDATION ON ACCESS TO NGAs: PRINCIPLES (1)
1. Reference wholesale access offer for:
Unbundled local loop
Passive infrastructure (ducts, etc.)
2. Passive infrastructure: implementation of a database accessible to
all operators
Geographical location for each element
Capacity
Other relevant technical characteristics
3. SMP: new WBA products available 6 months before marketing retail
products.
4. Application of the principle of equivalence
Access provided under the same conditions to internal and to third-
party access seekers
EC RECOMMENDATION ON ACCESS TO NGAs: PRINCIPLES (2)
5. Migration path to NGAs:
Inform operators five years in advance
Inform about future network deployment plans.
6. Price regulation for wholesale access
Cost-orientation methodology
Risk-premium incorporated in cost of capital.
7. Definition of sub-national markets/remedies
Diversity in conditions of competition for NGAs
NRAs allowed to define differentiated markets
8. Incentives for joint deployments
When no SMP condition is met
Conditioned to implement duct capacity enough for third parties (to be
used at cost-oriented prices).
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NEW WHOLESALE ACCESS PRODUCTS
FOR NGAs
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NGAs LADDER OF INVESTMENT. NEW WHOLESALE ACCESS PRODUCTS
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MDF/ODF
unbundling
Resale
Bitstream(Ethernet incl. ALA, IP, ATM)
- DSLAM- parent node- distant node
Cabinet
unbundling
Concentration
Access to in-house wiringor equivalent
Access to the end user using own
infrastructure only
Access products
Leased Lines(incl. Ethernet)
Dark fibre
Duct access
Only owninfrastructure
+
Wholesale products to reachaccess point
MDF/ODF
unbundling
Resale
Bitstream(Ethernet incl. ALA, IP, ATM)
- DSLAM- parent node- distant node
Cabinet
unbundling
point unbundling
Access to in-house wiringor equivalent
Access to the end user using own
infrastructure only
Access products
Leased Lines(incl. Ethernet)
Dark fibre
Duct access
Only owninfrastructure
+
Wholesale products to reachaccess point
Incre
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of
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nin
fra
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Incre
asin
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ion
of
ow
nin
fra
str
uctu
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MDF/ODF
unbundling
Resale
Bitstream(Ethernet incl. ALA, IP, ATM)
- DSLAM- parent node- distant node
Cabinet
unbundling
Concentration
Access to in-house wiringor equivalent
Access to the end user using own
infrastructure only
Access products
Leased Lines(incl. Ethernet)
Dark fibre
Duct access
Only owninfrastructure
+
Wholesale products to reachaccess point
MDF/ODF
unbundling
Resale
Bitstream(Ethernet incl. ALA, IP, ATM)
- DSLAM- parent node- distant node
Cabinet
unbundling
point unbundling
Access to in-house wiringor equivalent
Access to the end user using own
infrastructure only
Access products
Leased Lines(incl. Ethernet)
Dark fibre
Duct access
Only owninfrastructure
+
Wholesale products to reachaccess point
ERG (09) 17 Report on NGA - Economic Analysis and
Regulatory Principles
“the principle of the ladder of investment remains valid
in an NGA environment, but is expected to be a more
sophisticated ladder, with changes in the relative
importance of their rungs and, in general, different
dynamics, as a consequence of a shift in the economic
bottlenecks”
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OVERVIEW NGAS REGULATION IN THE EU
^: only mandated in some cases
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CASE STUDY: SPAIN
CMT REGULATORY OBJECTIVES
Making regulation technologically neutral
homogeneous regulation for fibre and copper…
although challenges posed by the migration to NGA must be addressed
Facilitating innovation and investment by all agents
Fostering sustainable competition
climbing up the ladder of investment towards infrastructure competition
Proportionality of the obligations
tailored to the specific competition problem
Striking the right balance between:
Foster competition Facilitate investments
For the maximisation of benefits for the consumers
CMT APPROACH TO MARKET 4: WHOLESALE PHYSICAL NETWORK ACCESS
Aims Remedies
Improve the competitive
situation in the retail
markets
• of copper-based offers
• of NGA-based offers
LLU & SLU
(facilitating FTTN
unbundling)
RO only for LLU
LLU/SLU of copper
(as in the 1st round)
LLU/SLU of FTTH not included
(not currently viable in a GPON scenario)
Access to passive
infrastructures
(viable substitute for LLU
operators in network
upgrading process)
General access to associated facilities
(as in the 1st round)
Duct Access
(at cost oriented prices)
Dark Fibre
(when ducts not available)
Facilitate the transition
from the traditional to the
NGA network
Control of the migration
process towards NGA
Information with 6 months in advance about
the NGA deployment
Guarantees in the case of exchanges
dismantling
– 5-year transitional period before dismantling
– Begin when >25% of Incumbent’s clients
connected to alternatives to copper
Additional measures with impact on market 4
Decision on symmetric measures imposing the sharing of in-house wiring (at reasonable prices)
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THE IMPORTANCE OF DUCTS ACCESS
Duct access is a facility hardly replicable
Constituting between 60%-80% of the costs related to FTTH deployment
Incumbent’s network is based on ducts
Main regulatory obligations imposed on Telefónica
Access (chambers, ducts, poles)
Collocation
Cost-oriented prices
Reference offer
PolesChambers Ducts
Remedies
Access • Meet reasonable requests for access to infrastructure resources
• When technical barriers arise, Telefonica shall offer alternatives (including dark fiber
rental).
Cost oriented prices
Transparency • Regulated Reference offer
• Provision of information on the technical and physical characteristics of the
infrastructures associated to exchanges, including space availability (6 months after
measures are in force)
Non discrimination • Quality parameters quarterly provided to CMT (for both wholesale and equivalent self-
provided activities).
• Agreements reached between interested parties shall be communicated to CMT.
Incumbent’s reference offer:
On-line information system with cartographic maps of
ducts, manholes, handholes and poles
Procedures and information systems to request
information about space availability as well as request
effective occupation
Technical specifications (rules on space usage and
maintenance, space availability criteria, …)
Economic specifications (prices, …), SLAs, KPIs
CMT APPROACH TO MARKET 4: DUCT ACCESS
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DUCT ACCESS REFERENCE OFFER: EXPERIENCE SO FAR
Two years of duct access in Spain
First experiences in 2008
Final version in place from April 2010
Main features
Access to urban Incumbent’s passive infrastructure
Can be used to deploy fibre/coaxial but not copper
Online application with cartographic information
SLAs and KPIs
Usage so far
1782 km of ducts used in the last 2 years…
… and more than 18.000 chambers
mainly requested for fibre deployments (Vodafone, Orange, Colt)
SYMMETRIC MEASURES IMPOSING THE SHARING OF IN-HOUSE WIRING
Obligations
Access to the fibre network
elements located inside of
close to the building
• The first operator to install the optical equipment/wiring inside the
building shall meet all reasonable access requests
• Regardless the solution implemented, the first mover must ensure
that the sharing is feasible and possible at a proportionate cost and
within a reasonable period
• Obligation to negotiate reciprocal agreements
• Centralised management of the network elements by the first mover
Reasonable prices
Transparency • Provide information about the buildings where the optical wiring has
been deployed
12th Feb 2009: decision adopted
Legal basis: Article 13.2 LGTel (obligations on non SMP operators)
Scope
buildings with no ITC (only of residential and mixed use)
New and already initiated deployments
Symmetrical obligations complement the remedies imposed to
Telefonica in the framework of market 4.
SCOPE FOR THE SYMMETRIC OBLIGATION (I)
Equipment
collocation
Tie cable Ducts, manholes, handhole Symmetrical
obligations inside
buildings
Sala de equipos
Collocation
Exchange Buildings
Reference offer for duct access
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SYMMETRICAL OBLIGATIONS: WHY?
Starting point is equivalent to all operators that intend to
deploy FO inside buildings.
Operators face problems related to usage of (scarce) space
in buildings and obtaining authorizations from the building
owners.
Mechanisms must be established to simplify the operative of
several operators interested in deploying fiber in buildings.
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Obligations are addressed to operators that deploy fiber optics
inside buildings.
Not included operators whose deployment is based in other
technologies (e.g. HFC).
Remedies apply to buildings where no ICT is enabled.
ICT: rules for the deployment of telecom infrastructures inside
buildings (areas for equipment, ducts for copper, coax
and fiber).
Business buildings are out of scope.
SCOPE FOR THE SYMMETRIC OBLIGATION (II)
CMT APPROACH TO MARKET 5: WHOLESALE BROADBAND ACCESS
Aims Remedies
Make regulation
technologically neutral
Wholesale broadband access available irrespective of:
• Copper-based offers
• NGA-based offers
Adapt regulation to the new
needs
“Enhanced bitstream” product:
• covering VDSL and fibre
• valid for VoIP services
Strike the right balance
between fostering competition
and facilitating investments
and innovation
(emphasis on investments by
alternatives on own
infrastructure)
Wholesale broadband access available up to 30 Mbps
(it is considered that for premium offers above 30 Mbps
alternatives can make use of the instruments available in
market 4)
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MARKET 5: NEW ETHERNET BITSTREAM SERVICE (NEBA)
Adopted in November 2010
Stemming from analysis of market 5
Pure Ethernet model both for residential and business costumers
Ensures VoIP reliability
Allows replication of NGA services in bitstream…
… but also differentiation from Telefónica
It emulates the behaviour of an own network Tariffs according to the
speed delivered at the Interconnection Access Point (instead of speed of
every user)
Available in pre-commercial terms in January 2012
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NEBA: HIGHLY FLEXIBLE PRODUCT
BE ORO RT Perfiles comerciales down up down up down up Perfil validación
v1 - 1M 1M - 25M/3M
v2 - - 2M 2M - - 25M/3M
v3 10M 1M - - - - 25M/3M
v4 10M 1M - - 256k 256k 25M/3M
v5 10M 1M 10M 1M 512k 512k 25M/3M
v6 - - 10M 1M - - 25M/3M
v7 - - 10M 1M 256k 256k 25M/3M
v8 - - 10M 1M 512k 512k 25M/3M
v9 25M 1M - - 256k 256k 30M/3M
v10 25M 1M 4M 1M 512k 512k 30M/3M
v11 25M 1M 4M 1M 1M 1M 30M/3M
v12 - - 25M 1M 256k 256k 30M/3M
v13 - - 25M 1M 512k 512k 30M/3M
v14 - - 25M 1M 1M 1M 30M/3M
v15 - - 25M 1M 2M 2M 30M/3M
v16 30M 1M - - - - 25M/3M
v16-2 30M 1M 128k 128k 25M/3M
v17 30M 3M - - - - 25M/3M
v17-2 30M 3M 128k 128k 25M/3M
v18 - - 30M 1M - - 25M/3M
v19-2 30M 1M 128k 128k 25M/3M
v19 - - 30M 3M - - 25M/3M
v19-2 30M 3M 128k 128k 25M/3M
NEBA conceived with a high list of commercial profiles...
...and more can be defined
predefined
profiles
categories
Commercial
profilesValidation profile
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Ethernet aggregation
xDSL: DSLAM IP
GPON: OLT
GigADSL
Internet
ATM aggregation
DSLAM ATM
Ethernet
NEBA
ADSL-IP nationalIP
Other operator
Internet
IP
ADSL-IP regional
OVERVIEW OF BITSTREAM PRODUCTS AVAILABLE
ATM
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Once NEBA will be available, Telefónica will not be mandated to
provide access to GigaADSL nor ADSL-IP (when overlapping of
PoIs)
Service LevelPoints of
Interconnection (PoI)Protocol
GigADSL Regional 109 PoI ATM
ADSL-IPNational 1 IP
Regional 50 IP
NEBA Regional 50 Ethernet
OVERVIEW OF BITSTREAM PRODUCTS AVAILABLE
CMT approachOverview of instruments available to altnets
Optical access
Exchange
Copper access
FTTH
FTTB
FTTN
COPPER
BitstreamLLU
Sub-loop
unbundling
Access to
passive
infrastr.
Own infrastr.
Access to in-house wiring
Dark fibre
Dark fibre
Dark fibre
CABLE
Cable
network
Up to 30 Mbps
Up to 30 Mbps
Up to 30 Mbps
Up to 30 Mbps
Market 5 Market 4
Aim of CMT approach:
Ensure that all the necessary rungs of the ladder of investment
are available to alternatives for all technologies (where viable)
Dark fibre
CMT APPROACH: OVERVIEW OF INSTRUMENTS AVAILABLE TO ALNETS
Thank you