Presentation at the Workshop on Municipal Fiber Networks, October 24th 2011 in Ghent, Belgium. The workshop was organised by Ghent University - IBCN / IBBT. More information about this event can be found at http://http://events.ibbt.be/en/workshop-municipal-fiber-networks.

1. Municipality Eindhoven,
FttX Networks
Ad Ketelaars
Programdirector Broadband & innovations with ICT
Municipality Eindhoven, Economical affairs
+31 (0)40 - 2386031
+31 (0)6 - 20496352
A.ketelaars@eindhoven.nl
www.eindhoven.nl
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2. Content
• Introduction Eindhoven (Brainport) region.
• Policy (vision): “Glasrijk Eindhoven”.
• Some FttX programs.
• Are we ready?
• Next steps!
• Learned lessons.
• Revenues.
• Questions & dialogue.
• Background sheets on some FttX projects.
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3. Eindhoven region (1)
Netherlands
Brainport
(Eindhoven region)
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4. Eindhoven region (2)
plaatje
High Tech Campus TU/e Campus High Tech Automotive Design High Medical
Eindhoven & Campus Helmond Campus Campus**
Incubators
• A chain of open innovation campuses.
• Triple Helix coöperation: Industry – Educational & Knowledge institutes – Government.
• Integral socio-economic ambitions: Sustainable Eco-system.
• Top economical clusters: High-tech Systems and Materials, Chemical industry, Life Sciences.
• Clusters in development: Smart mobility, smart materials, energy (solar & built environment),
industrial design, Food & technology, Design, ….
• Top organisations with R&D: Philips, ASML, NXP, FEI, Daf - trucks, VDL, TOMTOM, ……
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5. Policy: Glasrijk Eindhoven 2003
Vision:
• ICT & open digital infrastructures are:
- axis of innovation & growth.
- conditional for sustainable eco-system.
• Networks are not open (due to bu-model incumbants & lack of regulation) and limits our ambitions & goals.
• Municipality facilitates & initiates. (Network)investments must be marketdriven (sustainable bu-case).
• Social challenges are also economic chances.
Goals:
• Open fiber network for all inhabitants, SME’s, institutes & objects (internet of things).
• Stimulation of (innovative) use for socio-economic goals.
Strategy:
• Seduce investors to invest in “open” FttX networks.
• Create initiatives to force openness.
• Creation of awareness on: marketfailure & alternatives.
• Creation of (thematic): demand-, innovation- and upscaling-initiatives (pain & gain).
• Using our own demands (launching customer role).
Note: Target NGA coverage Brainportregion: 2011 - 15%, 2015 - 45%, 2020 - 90%
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6. Some FttX programs
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7. Some Innovation programs &
organisations
• Schoolnet Eindhoven & Brabant:
- Business-improvement -> cost-reduction -> educational innovation with ICT/broadband.
• Security & technology:
- Cybercrime research & (public-private) camera security solutions & innovations.
• Living Home Labs:
- Health/care, Sports, Light*, ……
• EIT-Labs: (European, Innovation & Technology)
- ICT, Inno-energy, Health*.
• Dutch Learning Lab*:
- Research, training, education on “topics” Learning (for life).
• Local Innovation program (municipality):
- Empowerment, social cohesion, E-participation, Open Data, Energy, Health & Well being,
Education.
• Business innovations & start-up centres:
- HTC, HTAC, Incubater 3+, …..
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8. Are we ready?
NO not yet, because of:
• Infrastructure (& organisations) challenges:
- Coverage: geographical & targetgroups.
- “openness” issues.
- Network services (Managed Service Lane, 2 lane model) for (socio-economic)
innovations.
- Integration of FttX networks & organisations.
• A lot of “innovationprojects & programs” with positive results and
enrichment in terms of knowledge, but also challenges on:
- Upscaling, valorisation (soci - economic).
- Synergy & integration between programs (transsectoral).
- Collaboration within and between sectors.
- Innovation- & clientcentric- attitude of serviceproviders.
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9. Our next Steps: General
(1)
• Infrastructure:
- Synergy & integration different infrastructures.
- Open up “closed” structures, incl. managed service lane.
- Roll-out to al targetgroups in Eindhoven and region.
- Expand use of network by governmental organisations.
• Usage & innovation:
- (Re)develop integral digital agenda, organise extensive collaboration &
innovation clusters for:
• Increase of services(providers) for further competition & improving
businesscase.
• Development & upscaling of innovative socio-economic services.
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10. The next Steps (2): Open
Closed model Open Model Open
(Netwerk determines (Competition of multiple
Services & providers) Serviceproviders)
Social & Innovation
Model
Serviceproviders ISP’s
Seperated
3 Internet, Telefonie, TV Players per layer.
Or
Regulated layers
2 or more layers Seperated
Owned/controlled Players per layer.
2 Equipment, management,
routing By one Or +
entity Regulated layers
Social wholesales
Underground infrastructure. Services (financed through
1 Duct, Fibers. (Dark Fiber) Commercial volume
Services)
Businessmodel PPS
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11. Network model Eindhoven
(2012-2014).
Regulated “open” Commercial & NUTS for socio & public services & innovation
Standard commercial, “Closed, ISP lock-in)
Business Consumer Social service organisations
Managed
ISP: Edutel ISP: Lijbrandt ISP: XS4ALL
ISP: KPN ISP: Vodafone “Free” ISP’s Lane
(Reggefiber) (Reggefiber) (KPN) Layer 3
Wholesales Social Wholesales
Agreement Agreement
Actieve Operator: KPN W&O, Neutral Operator:
Reggefiber wholesales Aquestora (PPS)
Layer 2
Schoolnet Eindhoven
ODF-regulation Living Lab Health
Passive Operator (NEMe*, 100% Reggefiber) Layer 1
Challenges:
- Investment climate - ODF for all targetgroups & area’s
- Position Neutral operator - BRE/GvE integration
- Neutral operator Reselling DF for BRE users - Participation
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12. Learned lessons (1)
• Clear (public) policy and actionplan on ambition, role & importance.
- Use your rights, position, benefits and regional attractiveness.
- Know the market (players, bu-models, competion, developments).
- Be “pigheaded”, idealistic & follow your ambitions.
• Incumbants are only interested in positions (lock-in), standards, volume,….
- Incumbants are not flexible, use them in a constructive way, don’t try to change them but
create workarounds on some topics.
• Create: sustainable successes, awareness, pain & coalitions.
- Act as a launching customer.
- Use the force of inhabitants, SME’s, organisations (partners), etc.
- Focus on: targetgroups with ambition (willing), problems & realistic solutions.
- “Small” stimulating (confronting) sustainable intitiatives.
• Creation of Open infrastructures does not automatically lead to “(smarter)
use”.
- Combine infrastructure & usage ambitions.
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13. Learned lessons (2)
• Small initiatives are good instruments but, be aware on:
- Quality of organisations.
- Control (instruments), organisations tend to develop own interests.
- Hostile takeovers.
- Fragmentation, collaboration between initiatives.
• There is not “one” model/solution for all challenges.
- Be flexible & creative.
- Select best model (per case), keep in mind the overal objective incl. synergy.
- In the end it is all about a sustainable businesscase.
• Get neutral & creative support, don’t loose control.
Fiber (ICT) are means, driving forces are thematical and based on
political & economical drivers.
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14. Revenues
• General:
- More attractive for (knowledge) institutes, SME’s, inhabitants, students.
- Improved climate for socio-economic innovations and related investments.
- Increased triple helix coöperation.
- Improved Imago, eg. “smartest region of the world 2011”.
• Concrete:
- Increased social cohesion (research: I-vision, TU/e).
- Increased service portfolio & freedom of choice for customers.
- Indications of more business innovation SME’s (research: TU/e).
- Increased collective & cohesive parkmanagement.
- Improved competition & growth of regional innovative ISP’s.
- Educational organisations: ICT cost < 25%, increased SLA’s, collaboration &
educational innovation.
- Health/Care organisations: functional benefits, costreduction, collaboration &
innovation.
- Large organisations: ROI < 2 years, increased sectoral collaboration.
- Costreduction on public services (camera’s, traffic-lights, etc.).
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15. We created a good starting position
for an
innovative socio-economic future.
END
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16. Questions &
dialogue
• Appendix, some background information sheets on:
- BRE
- EFX
- GVE
- ONSNET/NEMe
- Schoolnet
- Living Home Lab Health (fase 1)
Thanks for your attention, questions & suggestions
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17. Some FttX related
programs: BRE
BRE (Broadband Region Eindhoven):
• Institutes required Broadband for own purposes not offered by market (price/prestation).
• 23 large institutes decided upon creation of a collective Dark Fiber Backbone & rental of
fibers for other (future) users.
Achievements:
• ROI achieved within 2 years.
• Current Use > 200 (large) organisations, centre of Eindhoven region, beperkt vermaasd
• Stimulated sectoral use & collaboration for eg regional health organisations, fire-
departments, (public) security organisations, knowledge & educational institutes, FttX
initiatives, …
Challenges:
• Use (portfolio) limited for inter-compagnie-institute use, not for “services” to small SME’s
and/or inhabitants.
• Not usable for smaller organisations.
• Growth limited due to marketsaturation Dark Fiber, limited geographical spread and
meshed and no collective investmentsagreement between social stakeholders.
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18. Some FttX related
programs: EFX
• EFX (Eindhoven Fiber Exhange, marketplace): (foundation):
- Founding fathers: Municipality Eindhoven, TU/e.
• Mission:
- R&D on Fiber technologies.
- Reducing lock-in customers, enhancing competition.
• By:
- Interconnection of different (competing) infrastructures.
- “Opening” closed infrastructures.
- Marketplace for ISP’s (towards infrastructures & customers).
• Achievements:
- Facilitated a lot of regional (local) initiatives and connections for organisations.
- Reduced costs for (large) ISPs and stimulated price competition.
- Reduced monopoly position of incumbants.
• Challenges:
- “local” reach.
- “exclusion” large ISP’s forced by wholesales pressure incumbants.
- Incumbants refusal to corporate limits reach & openness.
- Limited awareness (push) from customers.
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19. Some FttX related
programs: FttH ONSNET
• Facts & figures:
- FttX Initiative for inhabitants (Triple play, 100Mb/s symetrical) in 25.000
Eindhoven households.
- 50% owned by (4) housing associations organised in Lichtrijk and 50%
Reggefiber.
- ONSNETeindhoven (cooperation) for customerservices & realisation of
clientcentric portfolio.
- Highest participationlevel in the Netherlands (from 40% up to 80%).
- Triple Play offer approx. €50 month.
- Free portal & videoconferencing services for inhabitants & organisations.
- Facilitating Living Lab programs.
• Challenges:
- Remaining households (Eindhoven 75.000).
- Withdraw of housingassociations.
- “Magic” image of coöperation ONSNET reduced.
- Portfolio is limited distinctive.
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20. Some FttX related
programs: GvE
GVE BV (Glasvezel Eindhoven):
• Facts & figures:
- FttB Initiative for large businessparks in Eindhoven (7 out of 9, potential ca.1600 SME’s).
- Netwerkportfolio GvE: Layer 1 & 2 services.
- Layer 1 owned by parkmanagement organisations (SME’s).
- Layer 2 provisioning by BBNED (Tele-2) controlled by GvE
- Functional services offered by multiple ISP’s selected by customers.
- Backbone BRE, Marketplace EFX.
- Financed by SME’s, Bank & guarantee municipality.
- Businesscase: participation-level 30%, 5 year contract, €140 E/month.
• Achievements:
- 400 SME’s and growing, combination with local services like Camera-protection and Cloudproposals for
smal SME’s (Starting).
- Multiple (smal, regional) ISP’s.
- TU/e: investigation shows that innovationlevel of connected SME’s exceeds other SME’s!
• Challenges:
- Remaining businessparks (region).
- SME’s not located on businessparks.
- Neutrality Layer 2 party (VLAN, Wholesales limitations ISP’s by BBNED).
- Innovative and differentiation of use.
- Portfolio development small SME (combinations).
- Limited vision & knowledge at stakeholders & SME’s on developments and future gainings.
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21. Some FttX related
programs: Schoolnet
Schoolnet: initiative of Municipality & Educational organisations.
• Facts & figures:
- Incidental stimuli via municipality by national government for improvement knowledge economie
- 3 lines: infrastructure -> businessadvantages -> educational development and usage.
- Approx 80% of primairy & secundairy schools connected.
- Based on FttH & BRE layer 1 infrastructure, combined with Neutral Layer 2 player just offering
interconnection services & internet Access. Services from ISP’s as selected by schools.
- Network & Internet (100 Mb) €175 / month (5 year contract)
• Achievements:
- Outsourcing ICT systems & management, better kwality less costs (> 25% ICT related costreduction).
- Collaboration projects started on services: Internet, telephonie, security, platforms for videoservices &
educational content sharing.
- Number of educational projects: sharing teachers, E-learning, contentdevelopment & sharing,
classcombinations, remote teaching, etc.
• Challenges:
- Formalising “one” facility organisation for all schools.
- Remaining schools.
- Knowledge & experience sharing.
- ICT policies & translation to operations.
- Limited resources & knowledge on schools.
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22. Some FttX related programs:
Living Lab Health, results
• Improved health levels, durable Stakeholders intent to:
movementpatterns, social contacts, - Adjust services
language skills.
- Add more fun & socializing
• “Basic” services are to rigid and limited and components
must enable more social issues and fun. - Introduce services for non-
• Service limitations, kills innovative usage. commercial support
• Friends & relatives can and will help if - Plan to develop & exploit integral
facilitated with proper tools. services together.
• Insight information on pricing – value - Started joining forces in order to
adding eleminate indicated “tresholds” for
• Combination of fysical & virtual approach scaling up.
proved to be essential.
• Elder people will & can use value adding
E-services and especcially not only for
“health”.
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23. END
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