Olivier DUROYON November 20 th 2013

1. IDATE DIGIWORLD SUMMIT 2013BROADBAND NETWORKS AND PUBLIC SECTOR INVOLVEMENT FROM THE ACTOR'S POINT OF VIEW Olivier DUROYONNovember 20th 2013

2. THE QUEST FOR BROADBAND CONNECTIVITY: A WORLD TREND • There is world-wide consensus in the need for more broadband connectivity • Because it creates wealth and jobs • Because people demand it • With a sense of urgency in some countries

3. WHAT ARE THE SOLUTIONS? Technology … • Spectrum allocation • Technology efficiency (all-IP networking, LTE overlay) • Infrastructures … In response to Public objectives • Bring more people connected to broadband services with better quality, more coverage and in a more affordable way!

4. INNOVATIVE APPROACHES TO FOSTER INVESTMENTS AND NETWORK DEPLOYMENTS AROUND THE WORLD • Facing the scarcity of fund and spectrum, innovative regulatory thinking and investment models emerge in developing countries: • Reduce cost through infrastructure sharing and innovative management of some spectrum bands (DD) • Attractive investment model compatible with long-term infrastructure funds criteria • Leverage technology evolution (IP LTE, bitstream) allowing service differentiation and competition on top of a collaboratively built infrastructure

5. MEXICAN INITIATIVE 98% coverage • The underlying driver: Grow the Economy • Macro-economic indicators are excellent • With growth as absolute priority, the Mexican reform encompasses : education, transport, energy … • For Telecoms, this has been translated to give access to affordable Telecom services to all. • The way to do it • Aim: bring mobile Broadband price as close as possible as Mobile Voice price • How: Reduce the network TCO by 20 times: • Allocate Digital Dividend • Generalize a wholesale model • Use PPP model and push other public supply side initiatives • Project’s details • All 700 MHz will be allocated to one wholesaler with stringent coverage obligations • A lean, flat IP, low cost wireless bitstream factory will be built on top • A non discriminatory wholesaler who cannot commercialize in the retail market • Paradigm shift from infra based competition to service-based competition

6. RWANDA INITIATIVE • Government drivers • Demographic boom • Need jobs and growth as a matter of stability • Bet on connectivity, knowledge society and ICT services • The way to do it • 3 land cables connected to sub-marine cable • Started by deploying nationwide fiber to municipalities (in 2011) • Next step is the Access: right of ways, backbone, 100Mhz DD • Project’s characteristics • The Government of Rwanda and KT established Infra Co. (olleh Rwanda Networks) to build 4G LTE nationwide network • Guarantees wholesale business license based on 4G & beyond technology for 25 years with exclusivity • Provides total bandwidth of 175MHz • Second JV to address services, content, usage • Contributing to solving social problems as an alternative to insufficient social infrastructure

7. A FEW CONCLUSIONS • Paradigm shift to service-based competition, through activewholesale products, to • Secure investment • Bring same services to all • Foster competition, not only at the retail level but also provide a QoS-based underlying infrastructure for innovative services like cloud • Leverage efficiency of new wireless technology LTE • Need long-term and strong political support