IX Cumbre Berec- Regulatel Por Pedro Ferreira

1. 2015 AND THE NEXT GENERATION TARGET IN PORTUGAL: THE BROADBAND CHALLENGE FOR ALL Pedro Ferreira REGULATEL-BEREC Summit Punta Canna, 14.12.2010

4. WHY IS BROADBAND SO IMPORTANT? The wider deployment and more effective use of digital technologies can provide a better quality of life through, for example, better health care, safer transport, and easier access to goods and services, including public services, and cultural content. From a broad economic perspective, Broadband Internet also fosters innovation and the development of service markets, thus creating new fields of economic activity. Broadband Internet access

5. WHY IS BROADBAND SO IMPORTANT? The world demand for bandwidth has been growing at 50%-60% per year. 124 million fixed and 25 million mobile broadband subscriber lines in the EU. 6.3% increase between July 2009 and July 2010. Fixed broadband penetration rate (UE27): 25,3%.

6. WHY IS BROADBAND SO IMPORTANT? According to the European Commission, speeds on offer are varying widely, but typically download speeds are in excess of 2 Mbps and upload speeds are above 256 Kbps. Source: European Commission Communication COM(2010)472 “ European broadband: investing in digitally driven growth”

7. WHY IS BROADBAND SO IMPORTANT? Broadband penetration Portugal (3Q 2010): 19,1% (fixed) + 12,1% (mobile) = 31,2% Source: ANACOM ADSL Cable modem Other (fixed) Mobile broadband accesses Fixed broadband 3QT10 % from the total ADSL 1.118.730 54% Cable Modem 831.855 40% FWA 23.277 1% Optical fibre 103.469 5% Leased circuits 2.070 0,1% Satellite 11 0,0% PLC 0 0% Other technology 217 0,0% Total 2.079.629

8. WHY IS BROADBAND SO IMPORTANT? The annual broadband related growth in the most advanced countries is evaluated as 0.89% of the GDP and will continue to increase. By comparison, countries with less-developed economies take less advantage of broadband: annual broadband-related growth is evaluated as 0.47% of the GDP. Source: “The Impact of Broadband on Growth and Productivity, MICUS, 2008 The evidence shows that countries with less-developed economies benefit from focusing on broadband development.

9. WHY IS BROADBAND SO IMPORTANT? Public policies have to be put in place in order to guarantee that no one is left behind, in particular, where commercial conditions are not enough to guarantee a universal access to broadband, like in rural and peripheral areas, at an affordable price.

11. EUROPE 2020 AND THE DIGITAL AGENDA FOR EUROPE 2013: broadband access for all 2020: access for all to much higher internet speeds (30 Mbps or above) 2020: 50% or more of European households with internet connections above 100 Mbps

13. THE EU DIGITAL AGENDA 'Digital Agenda for Europe' (May 2010) This agenda sets targets for the deployment of fast and very fast broadband, and foresees a number of measures to foster the deployment of NGN based on optical fibre and to support the substantial investments required in the coming years. The European Commission has proposed a set of legal instruments.

14. THE EU DIGITAL AGENDA TARGETS AND ITS LEGAL INSTRUMENTS Guidelines on the application of state aid rules identify the conditions for public financial support on non-market terms for broadband deployment in areas where commercial investments are unlikely to take place in the foreseeable future Recommendation on NGN aiming at fostering the development of the single market by enhancing legal certainty and promoting investment, competition and innovation in the market for broadband services in particular in the transition to NGN. NRAs need to ensure that access prices reflect the costs effectively borne by the SMP operator, including due consideration of the level of investment risk. 1. 2.

15. THE EU DIGITAL AGENDA TARGETS AND ITS LEGAL INSTRUMENTS Radio Spectrum Policy Programme aims at ensuring that part of the digital dividend are earmarked for use by for wireless broadband technologies. Licences for the use of wireless broadband on the 800 MHz band, by 2013. Broadband Commission’s Communication outlines how to best encourage private and public investment in high and ultra-high speed networks. 3. 4.

17. THE PORTUGUESE DIGITAL AGENDA The Digital Agenda 2015 The commitment: up to 2012, to invest about 2,5 billion euros in development of value added services and in the roll-out of an infrastructure with national coverage to offer high speed broadband in access to the final user.

18. THE PORTUGUESE DIGITAL AGENDA Portugal has assumed the promotion of investment in NGN as a strategic priority for the country, under the terms of the Council of Ministers Resolution No. 120/2008 of 30 July . Stimulating investment, believing that there is a need for public policies to encourage and promote private enterprises initiative.

19. THE PROMOTION OF NGN INVESTMENT – PORTUGUESE GOVERNMENT INITIATIVES In 2009, the Portuguese Government signed a protocol with four players on NGNs . Operators agreed to bring forward to 2009 the allocation of resources to enable the connection of a fiber optic network to 1.5 million users, collaborating with the Government and with ANACOM in identifying current barriers to investment in NGN. The celebration of this commitment is the recognition that the development and technological innovation is a powerful tool in promoting economic and social development.

22. THE PROMOTION OF NGN INVESTMENT – PORTUGUESE GOVERNMENT INITIATIVES The Portuguese Government launched a tender for the selection of entities to perform the installation, management, operation and maintenance of high-speed networks in 140 counties of the following areas: - the Centre (05.27.2009) - Alentejo and Algarve (06.07.2009) - North (7.10.2009) - the Azores (28.7.2009) - Madeira (28.7.2009) The areas within each zone were selected based on the lack of investment in infrastructure of cable networks and in the absence of investment by providers of broadband services in their own networks.

24. THE PROMOTION OF NGN INVESTMENT – PORTUGUESE GOVERNMENT INITIATIVES This program is financed by the mobile operators, following the obligations to promote the Society Information set at the public tender for the allocation of the 3G national licenses, held in 2000. It is also financed by public funds.

25. THE PROMOTION OF NGN INVESTMENT – PORTUGUESE GOVERNMENT INITIATIVES Accordingly to ANACOM’s report on the impact of e-initiatives (January 2010), there’s a positive impact on subscribers and their families (especially in terms of greater regularity of computer and Internet use). The trend has registered adherence rates of 40%, and in mid-October 2009 the volume of subscribers was about 1.3 million.

26. THE PROMOTION OF NGN INVESTMENT – PORTUGUESE GOVERNMENT INITIATIVES Take-up rates, particularly in the e-school programme, have tended to be greater in inland regions than along the coast, suggesting that the e-initiatives have driven take-up in areas where subscription to broadband provided according to normal commercial conditions has been proceeding at a slower pace.

27. THE PROMOTION OF NGN INVESTMENT – PORTUGUESE GOVERNMENT INITIATIVES Cost emerges as the key factor motivating take-up of e-initiatives, whereas mobility (e.g. portable computers and mobile internet) is also relevant to a significant number of users. The study also reveals that between 91% and 96% of participants come from families which had computers (mostly desktops) before joining, suggesting that the mobility provided by a portable computer is a valued factor. Growth intensity of computer use and Internet post accession

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