Wireless Prague experience with EC andState Aid rules

1. Wireless Prague experience with EC andState Aid rules http://wifi.praha.eu Jaroslav Solc, Prague City Hall, IT Dep. Wireless Prague

2. Context • Why metropolitan wireless infrastructure? • Broadband = priority (accessibility, affordability ...) • New challenges: mobility and innovative services(e-Gov,Tourism, Transportation, Security/CCTV, Healthcare, Environment ...) • Increasing number of laptops, PDA, smart phones among users • Effective combination with metro fibre optics • Active role of municipalities • New services, competitiveness • Models of public - private cooperation and combination of resources • State Aid rules:European Communities Treaty, Article 87 (1) • State (public) resources • Economic advantage • Distortion of competition • Affected trade between Member States If all 4 points fulfilled then can be problem, + exceptions (compatible SA – rural areas) Wireless Prague

3. Wireless Prague • Objectives  technology: WiFi Mesh • Pilot: 1/3 of the City area • Altogether 580 AP, 171 distribution p.fibre backbone (service purchased), schools and administration buildings + another 409 hotspots • Financing: City budget Note: application to SF/SPD2 Jan 2006) rejected (Jan 2007, EC procedure)CAPEX: 3 mil.EUR, OPEX/5 years 7 mil. EUR (+VAT) • No free internet access (!) • Idea end 2005, project preparations 2006, Public tender – contract (ICZ company, Jan 2007) • Implementation I/2007 – VI/2008 • Problem: complaint to EC - sent by associations of telco operators (June 2006, Feb. 2007 alt. WiFi operators) • Commitments • Phase 1: internal use, public eGov services • Phase 2: open network, commercial services(notification to EC) info: http://wifi.praha.eu http://wifi.praha-mesto.cz Wireless Prague

4. EC / DG Competition • Complaint / long term procedure (11 months, 2 meetings, 2 requests for information, teleconference, official commitments) • Decision: State Aid No NN 24/2007 (30.05.2007)Prague Municipal Wireless Network http://ec.europa.eu/comm/competition/state_aid/register/ii • Conclusions: • Project (Phase 1) does not constitute State Aid ! • Plans for Phase 2 will be notified to EC • General info from the document: • Municipalities can build infrastructures for their own needs (par. 30) • No problem with provision of public services (eGovernment) for free (par. 32) • Model to provide municipal facilities for hotspots deployment recommended (par. 38) Wireless Prague

5. Another experience • EC • Prague case – first muni wireless project evaluated from State Aid point of view (until now altogether ca 20 cases, rural areas, neg. Appingedam, Amsterdam in process) • No complaints – no case, but notification if uncertainty about State Aid • No remark on provision of internet (narrow band or other limits) • No clear remark about open infrastructure model • Cross communication (DGs) • National authorities, operators, media • intensive and positive communication (!!!) • strong strategic framework (objectives), analyses, political support • Other cities • Awareness, sharing ideas and experience, medialisation, lobbying • Common voice towards EC: gudelines, feasible models? open networks? Wireless Prague

6. Initiative • Starting point – why wireless, EKSF – TeleCities statement • new challenges for cities, mobility, new services, cooperation • Survey on wireless cities projects to be discussed and launched • Support: Elanet (Digital Local Agenda, Hameenlinna EISCO 2007, April), Erisa, CoR ... Examples: Bologna, Stuttgart, San Sebastian, Oulu, Turin, Brussels, Paris, Lyon, Tallinn, Amsterdam, Birmingham, Cardiff, Edingurgh, Leeds, Liverpool, Westminster + USA, Jerusalem, Moscow Wireless Prague

7. Statement (1) context • Based on eRights Charter, Broadband ManifestoElanet EISCO 2007 Digital Local Agenda • 16. To leverage the 2008 Green Paper on Universal Service Obligation, developing a clear statement - agreed with the Competition authorities and relevant Regulators - about the role of public sector investment in bridging the Broadband Gap; • 17. To provide a concise and coherent ”roadmap” for the use of wireless technologies, including freeing up more spectrum, in developing Public Sector or PPP initiatives designed to correct ”market failure”. • Wireless infrastructure and services included also in the FP7, support by EC Wireless Prague

8. Statement (2) • We believe that development of modern wireless metropolitan broadband networks (complementing metropolitan optical fibre infrastructure) is an important precondition for the development of innovative mobile services contributing to effective city management and competitiveness of cities in the global scene. These new mobile services accessible anytime and anywhere can be focused on • (a)Modernisation of internal city services (transportation, security, outdoor workers etc.); • (b)Provision of city services to citizens, tourists; • (c)Provision of mobile availability of the internet. Wireless Prague

9. Statement (3) • Cities, associations, national governments, European Commission are expected • (a)To support creation of new wireless infrastructures and innovative mobile services which are more specific for urban areas in addition to existing support of broadband infrastructure deployment in rural and underserved areas, • (b)To support experience sharing between cities, • (c)To find feasible models for cooperation of both public and private sectors. • Creation of wireless infrastructure and provision of mobile services is a new challenge for active approach of local governments and private companies to actively cooperate and combine ideas and resources. Wireless Prague

10. Survey (1) questionnaire • Introductionary information City, State: Contact person (name, position, contact): City profile (population, BB characteristics – providers, access, cost, usage) • Q1: Is your city interested to create municipal wireless infrastructure? If YES, in which stage are you – infrastructure partly developed, just implementing, planning? If NO, please express this fact as well (without answering other following questions). •   Q2: What are main facts about your project (objectives, technology, bandwidth/speed, coverage or number of hotspots, backbone network connection, services for users, timetable, costs and resources etc.)? •  Q3: Who is driving project in your city – city/politics, private companies, who is responsible person / organization? What is the role of your municipality in the project (covers costs from the city budget, provides municipal facility – eg. buildings, lamp-posts/traffic lights, only user etc.)? Who are other stakeholders of the project? Wireless Prague

11. Survey (2) questionnaire • Q4: Who are the users (groups)? What kind of services do you offer? Do you have some restrictions (content, bandwidth, registration etc.)? Is your infrastructure opened also to other service providers? • Q5: Are you planning/implementing some specific services on this wireless infrastructure besides internet (or restricted internet), e.g. city transport, tourist info, healthcare, security etc.? Which ones – can you describe details? •  Q6: What is the current status of your project and what are your plans for near future? •  Q7: Do you have some interesting experience to be shared with other cities (lessons learned, recommendation)? • Q8: Can you recommend us some public source with more information about your project (project website, press-release, documents)? • Q9: Any other information - comments, recommendations, interests to share experience and ideas with other cities? Wireless Prague

12. Survey (3) organization Comment by Maurice Paulissen: Sensitive issue, discretion towards EC Prague: Let´s work together Also on political level Issue should be discussed (LR govs, national authorities, EC, telcos)global competitiveness at stake • Objectives • to map the situation in EU cities, • ideas and experience exchange, • advertising – conferences • open discussion on challenges and models (public-private, open networks) • Workload: Prague, EKSF, Deloitte CE • Participants: EKSF members + any other city • Simple questionnaire, output: brochure • Schedule • start: asap • filled questionnaires: mid August? • brochure: September? • First draft presentation at Wireles and Digital Cities conference (Cannes, September 2007) Wireless Prague

13. Thank you for attention! Jaroslav SolcPrague City Hall, IT Department jaroslav.solc@cityofprague.cz tel. +420 236002682www.praha-mesto.cz Wireless Prague: http://wifi.praha.euhttp://wifi.praha-mesto.cz Wireless Prague