Review of Next Generation Access

1
Review of Next Generation Access

• Final Findings
• Francesco Caio
• 16 October 2008

2
150 individuals from 80 companies and
institutions
EXAMPLE
3
Key issues for the Review

• Is the delay in the development of NGA
  translating to a competitive disadvantage for UK
  businesses and UK citizens?
• Will the market deliver an investment in NGA on
  its own, or should the Government intervene now
  through subsidies or a structural change in
  regulation to get the roll-out of NGA started?
• Is there a role for the Government to play in the
  development of NGA infrastructure and, if so,
  what type of initiatives ought it to pursue?

4
Short term case for major intervention is weak

• The UK is in a good competitive position
• In the short term bottleneck is in backhaul/core,
  not access
• Competitors are beginning to invest in NGA

5
The UK is in a good competitive position

• Among highest broadband penetration
• Fastest growth in broadband penetration 04-07 as
  result of opening of BT loop / Unbundling
• Among most advanced internet economies in the
  world
• Healthy variety of alternative, competing digital
  platforms for comms and distribution of
  info/entertainment
• No essential application available on Fibre that
  cannot be delivered on DSL today
• Fibre connections available to all large / mid
  sized businesses

6
Capacity access vs. backhaul

ISP
Public internet
Core
backhaul
DSLAM
Web site
access
7
Driver for investment in NGA
gtgt
1 oz. Threat
1 lb. opportunity
Erosion of customer base
Higher revenues
Key driver
8
Broadband growing beyond PC and web
FROM TO
One integrated IP network Connecting a wide
range of broadband enabled devices Delivering a
growing breadth of services and transactions
Fixed and mobile voice telephony Radio Terrest
rial TV broadcast Music on radio or CD Film
via cinema or DVD Printed media . . Retail
Digitization Internet Standard Always on
9
Government should create environment to expedite
investment in NGA

• Broadband as new digital utility
• NGA will be key enabler in the mid term
• There is (limited) risk of static efficiency

10
4 recommendations

• Set out a framework for delivery of NGA
• Launch initiatives to expedite investments in NGA
• Establish structured monitor process
• Invest resources to define remedies to adopt IF
  market fails to deliver

11
1. Framework for Delivery of NGA

• Some key elements
• Fixed and Wireless
• Open Networks
• National, Regional, Community

12
2. 10 Actions to expedite investment in NGA

• Release Radio Spectrum
• Mandate Transparency on Traffic Management
• Support NGA specification for newly built homes
• Define Regulatory implementation Roadmap (Ofcom)
• Enhance Coordination of street works
• Relax Constraints on O/head deployment
• Remove barriers to alternative ducting
• Provide clarity on Business rates
• Establish Standard for open local networks
• Focus resources on Standard Local networks

Create stimulus To invest
Facilitate implementation
Support New investment Models
13
3. Benchmark progress to ensure momentum is
maintained

• Identify a senior figure to monitor progress,
  provide focal point
• Institute Annual NGA event to measure progress,
  update agenda
• Demand
• Regulation
• Supply
• Initiatives
• International

14
4. Develop contingency plan

• Review recommends process, not types of possible
  future intervention
• in dialogue with Ofcom
• output of benchmarking process
• with careful consideration of impacts

15
Thank You

• Francesco Caio
• 16 October