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Accessibility - The broad band concept . The Ostrobothnian concept , FINLAND

Accessibility - The broad band concept . The Ostrobothnian concept , FINLAND. The EU Strategy for the Baltic Sea Region – We implement the first European Macro regional strategy! Seminar 15.06.2011 Mecklenburg-Vorpommern EU Office Boulevard Saint-Michel 80, 1040 Brussels Ulf Grindgärds

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Accessibility - The broad band concept . The Ostrobothnian concept , FINLAND

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  1. Accessibility - The broad band concept.The Ostrobothnian concept,FINLAND The EU Strategy for the Baltic Sea Region – We implement the first European Macro regional strategy! Seminar 15.06.2011 Mecklenburg-Vorpommern EU Office Boulevard Saint-Michel 80, 1040 Brussels Ulf Grindgärds Special planner The Regional Council of Ostrobothnia.

  2. The presentation • An example of a regional broadband strategy in rural areas • A concept on adopting the strategy (investments, coordination, mobilisation)

  3. About Ulf Grindgärds • Ulf Grindgärds • Special planner • The Regional Council of Ostrobothnia • Has been working with FTTH-infrastructure matters in Ostrobothnia for the last twelwe years. • Ten years of these engaged by The Regional Council of Ostrobothnia • Now Special planner with responsibility for implementation of the Ostrobothnian Regional Broadbandstrategy.

  4. WELCOME TO OSTROBOTHNIA • Situated on the West Coast of Finland • The international, bilingual city of Vaasa as its centre. • Consists of 16 municipalities • 177 000 inhabitants

  5. The Regional Council of Ostrobothnia • Formed by the 16 municipalities in the region, the Regional Council of Ostrobothnia. • A joint municipal authority referred to in the Finnish Local Government Act (365/1999). • http://www.obotnia.fi

  6. Chapter 1: Why Fibre? What is Fibre To The Home (FTTH)?

  7. An example of a regional broadband strategy in rural areas

  8. The regional Broadbandstrategy of Ostrobothnia • The Regional Council of Ostrobothnia adpoted a broadbandstrategy in december 2005 saying • 2010 a household would be given the possibility to connect the home with a capacity of 100 Mbit/s - 1 Gbit/s in a symmetric way. • The network is aimed to • Be an open network so that whatever service provider has access to the network on equal terms to make the services available for the consumer. The consumer again must have the possibility to choose services by himself. • Serve the public sector (municipalities). More effective data networks for the municipalities

  9. A concept on adopting the strategy (investments, coordination, mobilisation)

  10. FROM STRATEGY TO IMPLEMENTATION the Regional Council of Ostrobothnia formed a common umbrella-concept through which the network is going to be constructed

  11. CONCEPT WITH IMPLEMENTATION AT LOCAL LEVEL • FTTH-projects was founded in municipalities • The first step at municipalitylevel was to form a working group • The municipality group started with a mobilisation- och planning project (financed by the Regional Council)

  12. The local mobilisation project 7 steps (6 months) 1. A networkplan and a calculation with the help of the villagers (local circumstances)

  13. The local mobilisation project (6 months) 2. Information meetings(What? Why? And How?) in everyvillage to get the peopleinvolved. (A calculatedprice for the connections is available at the meetings).

  14. The local mobilisation project (6 months) 3. After the informationphasepre-connection-agreements are made to seeif you reach the needed penetration and the willingnes of the households to invest the moneyneeded. 4. If you haveenoughpre-connection-agreements you proceed by making a calculationbased on pre-connections to check the price. 5. Bindingagreements. 6. With the final agreements on hand the decision to start to buildthe network is made. 7. To do this you found a communitybasedcompany(cooperative) if it hasn´tbeenfounded at an earlierstage.

  15. How to finance a FTTH-project?Case: Community based local FTTH-project in the municipality of Kristinestad

  16. ACTION • Case KrsNET in Kristinestad.

  17. About Kristinestad • 7.280 inhabitants • 57 % swedish-speaking, 41,9 % finnish, 1,1 % others • Founded 1649 • Area: 809 square metres/. 9 inhabitants/square metres. • Coastline including islands: 370 km • A small old town surrounded by rural area.

  18. THE FTTH-JOURNEY WAS STARTED • The process was started at the beginning of 2006 • A state co-funded (local action group) planning- and mobilisation project was started. • A municipality owned project (75 % state/municipality, 25 % private, budget 40 000 euro))

  19. The company KrsNET (cooperative) was founded 26th of November 2006 • The Cooperative KrsNET was founded 26.11.2006 by 27 founders. • The businessidea is to build, own and operate a fiber optical network connecting all the homes in Kristinestad. • The net will be operated as a multi-service open access network. This guaranteed, as the network is owned by the users.

  20. FIBER FROM THE HOMEBROADBAND IN COOPERATION - THE MUNICIPALITY AND THE INHABITANTS COOPERATIVE www.krsnet.fi

  21. The construction phase was started in June 2007 • The situation in June 2011 • The cooperative has about 650 members = FTTH activated households • The municipality has connected all the schools and other buildings into one network network of its own • Today FTTH available almost everywhere in the municipality

  22. The network was realised through a huge partnership where as well the inhabitants as the municipality were involved The role of the municipality. The generator! Not network owner.

  23. Financing the investement • The construction cost is covered by the connection fees which was 1700-3000 euro/connected house during the first phase • The connection fee was paid in three instalments • The household had the possibility to take a loan in local banks if they wanted • KrsNET took also up a loan quaranted by the municipality. • The municipality anchor customer!!!!

  24. Financing the investement • The connection fee has to cover both the backbone (higway) part and the distribution (streets) part of the network • In the most sparsely populated parts EU+ state money possible to be used • KrsNET got this kind of financing through a EU-programme for rural development for the backbone to the smallest villages. • Now the connection fee is 2500 euro all over the municipality. It is higher after the first roll out phase, beacause some work was done voluntary in the first phase.

  25. Operationel costs and services in the open access KrsNET • To cover operational cost and costs for maintainance (OPEX) a monthly fee 23 euros is collected from each. • 5 Internet Service Providers: • Example (Dynamonet): • 5/5  Mbit/s 8 euro/month •  20/20 Mbit/s 11 euro/month •  50/50 Mbit/s 27 euro/month • 3 IPTV-service providers will start selling TV-channels and films. • Example JNT • 34 channels 16 euro/month • Several VoIP providers

  26. Open access business model idea… DYNAMONET Kuuskaista KrsNET KrsNET charge every member 23 euro/month to cover OPEX So far KrsNET dos not charge the service provider. The service provider charges the end customer directly.

  27. The Minister of Communication opened KrsNET in june 2009

  28. FTTH-projects in Ostrobothnia We also have two regional Incumbents offering FTTH Kronoby-NET Pedersöre-NET Nykarleby-NET Malax-NET Närpes-NET Kristinestad-NET

  29. Cooperative Finnish Open Networks founded in June 2010 • Neighbouring open access networks connected to each other to form a bigger marketplace = more and better services and better prices. • More easy for the service provider to connect the service – one agreement – several networks – more optional customers. WIN-WIN.

  30. FTTH Global panorama end-2010 – Total subscribers 4.2 M 3.9 M 8.8 M 45 M 0.3 M … and FTTH continues to grow

  31. FTTH Global Ranking – end 2010

  32. FTTH European Ranking – end 2010

  33. Thank you for your attention.Ulf Grindgärds ulf.grindgards@obotnia.fi

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