Brussels 2015 DG Connect Seminar "Broadband Strategy 2030 of Lower Austria"

Fiber Wheel by Robert [CC-BY-SA-2.0]
Niederösterreichische
Glasfaserinfrastruktur
Gesellschaft mbH
Broadband Strategy 2030
of Lower Austria
Providing a sustainable and affordable
broadband connectivity in rural areas.
CONNECTED COMMUNITIES
"Mutual Learning" seminar
26 June 15 - Brussels
DI Dr Igor Brusic

nöGIG | Dr. Igor Brusic | 2015-06-24
i.brusic@noegig.at | +43-2742-9000-19770 | Niederösterreichring 2, Haus B, 3100 St. Pölten, Austria
Our mission
. build public fiber access infrastructure
in rural areas of Lower Austria
. lease the infrastructure to a neutral active operator

The
Niederösterreichische Glasfaserinfrastruktur GmbH*
is a 100% subsidiary of and has
been authorized by to establish a
sustainable
broadband infrastructure in Lower Austria!
* Lower Austrian Fiber Infrastructure Ltd.
We are ...

What‘s our approach
1. Having an infrastructure goal (connecting buildings with
fiber) and not a broadband goal (30, 50, 100 Mbps)
2. Linking a professional team of experts (financial, technical,
regulatory, legal, tendering) with local authorities
(construction, water, data) and municipalities
3. Thinking and acting BIG (regional areas, >100M EUR)

Thinks you have to take care of …
Efforts of persuasion towards the politics
with great support of the Broadband Coordination of Baden-Württemberg (Germany)
Well considered implementation level
municipal level is to small, existing regional coalitions of municipalities much better
Separating the layers
focusing on infrastructure but don’t start roll-out without pre-contract
Build up the right financial model
at the beginning of the project, not in the middle
Long-term thinking, commitment and endurance
as for any strategic project

It‘s not broadband…
… it‘s all about
infrastructure

Contact
DI Dr. Igor Brusic
phone +43 2742 9000 19767
mail i.brusic@noegig.at
web https://noegig.at
nöGIG
Niederösterreichring 2, Haus B
3100 St. Pölten, Austria

The province of Lower Austria
1.6 Mio people
85 people/km2
573 municipalities
25 districts
750K households
80K SMEs

current situation >2 Mbit/s

current situation >30 Mbit/s

current situation >100Mbit/s

current situation FTTH/FTTB

Targeted Objectives
Sustainable, reliable & symmetric
broadband connectivity
with extreme
low latency and high capacity

Further development
Today only fiber connectivity achieves
the targeted objectives.

Further development
private
market
private
market

Further development
private
market
private
market
market
failure

How to fix the market failure?
European Commission
Guide to High-Speed
Broadband Investment
Rel. 1.1 – 22 Oct. 14.
Three-layer open model (3LOM)
Strictly separating the role of physical
infrastructure provider, network provider
and service provider

Costs and where does the money come from?
Physical infrastructure provider:
public company
Top-down calculation done by
next.kom GmbH (Germany)
Total Investment of 1.03 Billion EUR
equity 261M EUR
cumulated debt financing 653M EUR
Prerequisite: Take-rate 40%
Envisaged funding by country, EU,
institutional and private investors and
commercial banks.
Supported by subsidies from BMVIT

3LOM – seperating the roles
network provider (wholesale only)

wholesale only network providers

… offering their services in Austria

Piloting the 3LOM concept
Infrastructure company (nöGIG)
founded in Jan 2015
Proof-of-concept in 5 regions
5M EUR funding
Implementation in 2015 and 2016
approx. 3.000 FTTB/FTTH connections
Additional 25M EUR in approval

Targets of the pilot
. Establish processes for planning, building and
maintaining passive infrastructure
. Build standardized passive infrastructure
. Introduce asset and contract management
. Exploit synergies in municipal services (road, water,
construction, geo-data management, …)
. Establish high quality documentation
. Apply for funding (province, state, EU)

We can't solve problems by using the same kind of
thinking we used when we created them.
Albert Einstein
We don’t have a broadband
but an infrastructure problem!

Brussels 2015 DG Connect Seminar "Broadband Strategy 2030 of Lower Austria"

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Brussels 2015 DG Connect Seminar "Broadband Strategy 2030 of Lower Austria"