the road to the digital agenda targets from a regulator’s perspective
DESCRIPTION
Presentation given at Analysys Mason seminar 2014 about the future of EU regulation.TRANSCRIPT
The road to the digital agenda targets from a regulator’s perspective
Analysys Mason Seminar
Cambridge, October 21st 2014
Reinhard LaroyEngineer Advisor , BIPTLecturer ICT & Media, KU Leuven
Outline
Market Context
Regulatory intervention
Implementation
Conclusions
2
NGA infrastructure roll out
Belgium has one of the largest coverages of NGA networks in EU:- 90% VDSL2- 93% Eurodocsis 3.0
Source: Cullen, June 20143
Belgium best in class for high speed uptake
Source: Digital agenda scorecard, European Commission, 2014
Broadband penetration (+30 Mbps)Subscription as % of pop – Jan 2014
NGA subscription (Docsis 3.0 and other NGA) as of total broadband subscription – Jan 2014
0% 5% 10% 15% 20% 25%
IT
CY
EL
SI
FR
ES
AT
EE
CZ
MT
SK
DE
EU
FI
PL
BG
HU
UK
LU
IE
PT
DK
RO
LV
SE
LT
NL
BE
0% 10% 20% 30% 40% 50% 60% 70%
HRCYELIT
FRATDEESLUEUSKUKIE
HUSIFI
EEDKCZPL
MTLTPTSENLLVBGROBE
4
BE: competition cable-DSL
5
0%
10%
20%
30%
40%
50%
60%
70%
S12005
S22005
S12006
S22006
S12007
S22007
S12008
S22008
S12009
S22009
S12010
S22010
S12011
S22011
S12012
S22012
S12013
S22013
Mar
ket
shar
e
DSL
Cable
The role of the regulator?
Regulator adaptsframework to
give incentive tonew technology
roll-out
Operator deploys new
technology andlaunches new products withhigher speeds
Equipment vendor develops
andcommercialisesnew technology
6
Technology impact of vectoring
7Source: Alcatel Lucent
Single DSLAM per copper line required
Vectoring needed for level playing field copper - cable
8
Docsis 3> 100 Mbps
VDSL<50 Mbps
Regulatory framework 2010
Commission Recommendation 2010/572/EU of 20 September 2010 on regulated access toNext Generation Access Networks (NGA) –Article 29:
“NRAs should impose an obligation of unbundledaccess to the copper sub-loop. (…)”
9
BIPT decision July 1st
2011
No business case for sub loop unbundling
Vectoring
Low LLU penetration (6% in 2010)
Level playing field with Cable
Regulation needs to sendthe right investments signals… Vector friendly framework
Removal of sub loop unbundling
obligation
10
… but the level of competition needs to be guaranteed as well
Pro competitive measures in BIPT decision July 1st 2011
Bitstream should be enhanced enough to allow OLOs to compete effectively at the retail level
OLOs should be able to replicate the incumbent’s retail vectoring improvements based on bitstream offer: adapt wholesale offer 6 months before the retail launch
Add multicast functionality
11
Enhanced WBA VDSL2 bitstream
12
Internet
OLO BAS
OLOEthernetnetwork
Access Line
End-user LEX
IP-DSLAM
fiber
VDSL2
Modem
Copper pair
Ethernet
BackboneR
KVD
ROP
WBA VDSL2 is offering an Ethernet connectivity between the end user and the OLO Access Line (OAL) including multicast
2 types of cross-connect are foreseen C-VLAN cross-connect for residential subscribers
S-VLAN cross-connect for business subscribers
2 types of backhaul transport service Shared VLAN
Dedicated VLAN
4 QoS priority services defined – Using Ethernet p-bit
Belgacom and Alcatel-Lucent pave the way for next generation
broadband in EuropeAlcatel-Lucent and Belgacom, the largest telecommunications company in Belgium, are introducing breakthrough innovations to increase access speeds to the Internet.Building on a long history of pioneering innovations, the two companies are introducing the latest state-of-the-art technology to enhance the offering of broadband services throughout Belgium. Thanks to an ambitious joint-development program with Alcatel-Lucent, Belgacom will boost performance over its national triple-play network to provide guaranteed speeds of 50 megabits per second and beyond, setting a new standard of quality forBelgian citizens as of 2014. This will be realised thanks to the world’s first commercial introduction of VDSL2 Vectoring.
Investment decision shortly afterthe market analysis decision
13
Press release Belgacom – Alcatel Lucent 27th September 2011
Belgacom launchedvectoring in February 2014
14Source: Belgacom-Alcatel Lucent, 2014
Invest in Fixed Zoom- in: Vectoring working live in our network today
Belgacom is First in the World with nationwide activation of the Vectoring technology on an existing VDSL2
network for a significantly better broadband experience
Powerful vectoring technology
Through cancellation of crosstalk on a VDSL2 line,
Vectoring proofs to enable remarkably higher speeds
Results from the technical field trials
In-depth technical field trials were conducted involving
1000+ customers with both moderate, high and excessive
crosstalk
• Speed boost to 70 Mbps – 98% of Vectored lines < 400m in the
technical field trial synchronised to 70Mbps
• Videograde quality maintained – 98% of vectored lines adhere to
the required high-quality videograde criteria of IPTV
• No impact on installed-base – Performance of existing modem
installed base is fully maintained after Vectoring activation
1
2
3
Effect of enabling Vectoring on VDSL2 lines part of the Technical Field Trials (in Mbps)
FROM
TO
2
0
20
40
60
80
100
120
140
160
0 2 4 6 8 10 12 14 16
Attenuation
Atta
ina
ble
bitra
te in
Mb
ps0
Capping at 70
Mbps video-
grade speed
Slide 48
Conclusions
New technology might have an impact on regulatory framework
Regulators need to evaluate this impact.
Create incentive to deploy
Guarantee level of competition
15