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Municipal FttX 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 [email protected] www.eindhoven.nl

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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.

TRANSCRIPT

Page 1: Ad Ketelaars - Services offered over municipal network

Municipal FttX 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

[email protected]

www.eindhoven.nl

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Municipal FttX Networks 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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Municipal FttX Networks 3

Eindhoven region (1)

Netherlands

Brainport

(Eindhoven region)

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Municipal FttX Networks 4

Eindhoven region (2)

High Tech Campus

Eindhoven

TU/e Campus

&

Incubators

High Tech Automotive

Campus Helmond Design

Campus

High Medical

Campus**

plaatje

• 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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Municipal FttX Networks 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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Municipal FttX Networks 6

Some FttX programs

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Municipal FttX Networks 7

• 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+, …..

Some Innovation programs &

organisations

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Municipal FttX Networks 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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Municipal FttX Networks 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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Municipal FttX Networks 10

Underground infrastructure.

Duct, Fibers. (Dark Fiber)

Equipment, management,

routing

Serviceproviders ISP’s

Internet, Telefonie, TV 3

2

1

2 or more layers

Owned/controlled

By one

entity

Closed model (Netwerk determines

Services & providers)

Open Model (Competition of multiple

Serviceproviders)

Seperated

Players per layer.

Or

Regulated layers

Open

Social & Innovation

Model

Seperated

Players per layer.

Or

Regulated layers

+

Social wholesales

Services (financed through

Commercial volume

Services)

Businessmodel

PPS

The next Steps (2): Open

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Municipal FttX Networks 11

Network model Eindhoven (2012-2014).

Passive Operator (NEMe*, 100% Reggefiber)

Actieve Operator: KPN W&O,

Reggefiber wholesales

Schoolnet Eindhoven ODF-regulation

Wholesales

Agreement

Social Wholesales

Agreement

ISP: KPN ISP: Edutel

(Reggefiber)

ISP: Lijbrandt

(Reggefiber) ISP: XS4ALL

(KPN) “Free” ISP’s

Business Consumer

Neutral Operator:

Aquestora (PPS)

Living Lab Health

Layer 1

Layer 3

Layer 2

ISP: Vodafone

Regulated “open”

Standard commercial, “Closed, ISP lock-in)

Commercial & NUTS for socio & public services & innovation

Challenges:

- Investment climate

- Position Neutral operator

- Neutral operator Reselling DF for BRE users

- ODF for all targetgroups & area’s

- BRE/GvE integration

- Participation

Social service organisations

Managed

Lane

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Municipal FttX Networks 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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Municipal FttX Networks 13

• 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.

Learned lessons (2)

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Municipal FttX Networks 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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Municipal FttX Networks 15

We created a good starting position for an

innovative socio-economic future.

END

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Municipal FttX Networks 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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Municipal FttX Networks 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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Municipal FttX Networks 18

• 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.

Some FttX related programs: EFX

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Municipal FttX Networks 19

• 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.

Some FttX related programs: FttH ONSNET

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Municipal FttX Networks 20

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.

Some FttX related programs: GvE

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Municipal FttX Networks 21

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.

Some FttX related programs: Schoolnet

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Municipal FttX Networks 22

Some FttX related programs:

Living Lab Health, results

Stakeholders intent to:

- Adjust services

- Add more fun & socializing

components

- Introduce services for non-

commercial support

- Plan to develop & exploit integral

services together.

- Started joining forces in order to

eleminate indicated “tresholds” for

scaling up.

• Improved health levels, durable

movementpatterns, social contacts,

language skills.

• “Basic” services are to rigid and limited and

must enable more social issues and fun.

• Service limitations, kills innovative usage.

• Friends & relatives can and will help if

facilitated with proper tools.

• Insight information on pricing – value

adding

• Combination of fysical & virtual approach

proved to be essential.

• Elder people will & can use value adding

E-services and especcially not only for

“health”.

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Municipal FttX Networks 23

END