Sinu logo

Activities of Estonia in relation to the roll out of broadband, rural internet connection, the role of local authorities and how this has help local economies and contributed to economic progressAivo LeppCounsellor for TelecommunicationsPermanent Representation of Estonia to the EURue Guimard 11/13 Brussels BELGIUM

24.02.2016

Digital Agenda for Estonia 2020

AdministrationSinu logo

Ministry of Economic Affairs and Communications is responsible for the general ICT coordination

• IT legislation• State policy about Information Society

Department of State Information SystemsDepartment of Public ServicesDepertment of Electronic Communication

E-services

https://e-estonia.com/components/

Target: Everybody has access to fast and free internet 1. The basic network of the next-generation internet will be completed. 2. Build-out of retail broadband network will be supported in regions of market failure. This will be done by:

a. reducing administrative burden related to the construction of the communications network by simplifying the relevant legal framework. A principle will be introduced according to which “last mile” connections will have to be built into any new government-funded construction objects;c. promoting community initiatives aimed at the development of “last mile” connections; d. supporting the development of “last mile” connections as needed in areas of market failure, including in rural areas.

3. Availability of spectrum meeting the requirements of information society will be ensured, allowing to guarantee internet access for end-users in areas, where fixed networks are not available and are not ever likely to become available.

Broadband ambition

Completion of the next generation broadband network. To date, the construction of about one third of the total 6,500 km fibre-optical cable network has been finished. By 2020, the development of the network will be fully completed. This means that all residents of Estonia will have access to fast (30 Mbit/s or faster) internet with at least 60% of households will be using ultrafast (100 Mbit/s or faster) internet daily.

www.mkm.ee

• Six years ago, was founded by all major Estonian telecommunications companies Estonian Broadband Development Foundation (ELA)

• ELA is non-profit organization.

• Network design, project management and application of funds necessary to construct the networks is done by ELA.

• All the EstWin fiber optical networks belongs to ELA.

• 3rd party contractors for deployment and operations & maintenance of the EstWin network will be selected via an open tender process to ensure competition between alternatives.

www.elasa.ee

EstWin project leader and the owner of the EstWin network

Estonia had in rural areas two existing optical backbone networks, a total of about 5,000 km

The EstWin network is constructed only in rural areas where optical network doesn’t exist (white areas)

• EstWin is a Backbone network;• Fiber-based physical network (dark fiber);• The network consists of fiber-optic cables, which are blown

underground microduct. Network connections are in outdoor or indoor cabinets and along the route of network underground manholes approx. 1.5 km intervals.

• Directly are connected to the EstWin network existing fix operator sites, mobile masts and public institutions buildings.

Network design overview

ODF

ODF

ODF

ODF

ODF

ODF

Mobile (Private & Enterprise)

Enterprise

Residential

Operator Backbone NetworkEstWin NetworkAccess Network

”last mile”

Operator A

Operator B

VDSLCopper

Fiber

”End location”

”End location”

”End location”

”backbone”

Network elements (www.elasa.ee)

EstWin network is a physical fiber network; The owner of this network does not install any data

communication equipment into this network. The owner of EstWin network will rent fiber network on

equal terms to all operators. There will be established facilities to the final terminals of

EstWin network for operators to connect to the network.

For that purpose there will be equipment lockers or containers with power supply at the final terminals of network.

All operators renting the fibers can also rent an equipment space and install their equipment to these final terminals of network.

Fiber Optical Backbone Network in Estonia before EstWin (www.elasa.ee)

EstWin Network 2020 (www.elasa.ee)

Sinu logo

• There is no specific legislation facilitating broadband investment, but there is underway discussions what should bring out most burden like rules for example in The Law of Property Act and in Construction Law. Rules are strict mainly for market players and raise expenditure of projects - meaning that “cable” is only small part of from delivering of the infrastructure.

• Main breakthrough is legislative agreement with Road Administration. Agreement lets to build infrastructure directly by the roads. There have been also projects that facilitate civil works synergies.

Sinu logo

Last mile connections from EstWin network• Last mile connections are greated by the operators who offer

Internet services to end users

• Last mile connections needs to be established by the telecommunications operators in market conditions and where there are enough potential customers

• In areas where potential customers are not enough, and communications companies do not want to greate the last mile network, is the market failure

• To overcome market failures we are preparing of a plan EstWin 2 to support the construction of the last mile network. The plan will be ready by end of this year.

www.mkm.ee

Conclusion

• State aid for establishment EstWin network is effective and has not harmful impact on the market and operators investments in the rural area and has grown

• Guarantor of the EstWin project success has been the cooperation of all stakeholders and taking into account the interests of all

• Despite EstWin network is still in many places in rural where operators are not able to build last mile network

• CEF may be one solution for financing last mile network in rural

• In order not to spoil the market, we must find a balance between operators investment and state aid

Broadband roll-out (EstWin2)Matket failuere in sub-urban areas

Broadband roll-out (EstWin2)Matket failuere in rural area with existing network

Broadband roll-out (EstWin2)Matket failuere in rural area with EstWin1 network

What people need in rural area? (Mayor of Suure-Jaani)1. Good roads2. Roads without snow3. Water4. Canalization5. Public transport6. Phone 7. Internet

Why do people need internet in rural area?1. E-government services2. Work3. Communication4. Information5. Entertainment

Challange in rural areas (www.telia.ee)

Suure-Jaani example

Direct role of local governments

• Community joint initiatives

• Network construction-related approvals