February 25, 2010Carlos Barroqueiro

CBE – President

AGENDA

Telecom Contractor and Integrator

FTTH /B and FTTN HFC Networks 2G / 3G Mobile Networks

Founded in 1998

200 Direct Employees

Head-Quarters in Lisbon & Porto

7.24%

14.41%

21.73%

44.22%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

45.00%

50.00%

1T09 2T09 3T09 4T09

Others (Leased Lines, FTTH, FWA)

Cable Modem

ADSL

In the 4th Quarter of 2009

the "others" category, which

represents 3% of total

customers, has seen sharp

growth, above 40%

Portugal Overview

Change on previous quarter (%)

Broadband Clients – Fixed Access

Source: Anacom Internet Access Service - 4rd Quarter 09

In the 4th Quarter of 2009

FTTH/B Clients double

the previous quarter.

Un. Client

27,38631,333

38,141

55,008

0

10,000

20,000

30,000

40,000

50,000

60,000

1T09 2T09 3T09 4T09

Leased Lines, FTTH, FWA

Leased Lines, FTTH, FWA

Portugal Overview

Source: Anacom

qqq

Internet Access Service - 4rd Quarter 09

1. Access to the incumbent’s operator infrastructures (Trenches, Ducts and

Poles);

“Bottlenecks and Solutions”

There are 3 Major issues for the deployment of FTTH:

3. The intervention of local authorities (Role of Municipalities) as “facilitators” for

the FTTH Deployment.

2. To facilitate the Deployment of Fiber on the private domain (Access to Buildings)

is the sharing of the terminal part of Fiber to the Customer’s premises;

Access to the incumbent operator infrastructure:

“Bottlenecks and Solutions”

• Access to existing Infrastructures changes considerably the economic equation for

deploying a new fiber optical loop;

• The construction of new underground or aerial infrastructures represents up to 50%

or 80% of the total cost per subscriber;

Not economically viable for an operator to rebuild the

whole infrastructure network!

• Access to buildings is a serious bottleneck for all players. FTTH deployment

means rewiring buildings and apartments.

“Bottlenecks and Solutions”

1 - It is not economically viable;

2 -Landlords and building managers will refuse to grant access to more

than one operator.

Sharing of the last part of the optical fiber local loop among operators

would be the solution.

Access to Buildings:

For two reasons, it is doubtful that there will be more than one roll out of in-house

wiring:

“Bottlenecks and Solutions”

Role of Municipalities:

• To encourage the deployment of FTTH Networks, municipalities can play an

important role:

- Granting rights of way (provide local information, coordinate work, facilitate

negotiations, etc.);

• They can lay extra-capacity ducts and encourage their sharing;

• Finally, they can also deploy their own fiber.

Some Municipalities already moved to accelerate the deployment of new fiber local loops on their territory

creating “Digital Cities Projects” ( Évora Digital, Algarve Digital, Aveiro Digital, etc.)

“Bottlenecks and Solutions”

• ITED II

• ITUR

• ORAC Offer of Access to Conduits (Since 2005)

Manual - Telecommunications Infrastructures in Buildings

Manual - Infrastructures for Telecommunications in Housing Developments, Urban Settlements and Concentrations of Buildings

“Bottlenecks and Solutions”

Government's strategic guidelines for NGN

Between Government and Operators for the NGN’s

Member States should promote competitive investments in fibre networks

• DL 123/2009

• Protocol(Jan/09)

• EU Directives

Thank You

www.cbe.pt