Next Generation Access Networks

Fiber To The Home

Target of the Project Fiber To The Home FTTH

Development of an open-access and technology neutral passive network infrastructure based on optical fibers for broadband access to:

2.000.000 homes and businesses,

in Athens , Thessaloniki and 52 cities across Greek territory

Broadband access in Greece

The last 4 years we have achieved to increase significantly the number of home broadband connections.

More specific the broadband penetration is near 14%.

Penetration rate and number of broadband connections from the 1 st July 2002 up to 1st January 2009

The digital convergence of Greece and W. Europe countries

We have decrease the digital divide with the W. Europe. The penetration rate in Greece is getting closer with other West European countries.

Demands from new introduced network services

The introduction of innovative network services, like Video on Demand (VoD) and High Definition Digital Television (HDTV) brings forward the demand for higher throughput provisiom from the access networks. Until now in Greece, we have no other fixed network access technology for home broadband connections, except the copper - ADSL.

Social Acceptance

About 90% of the participants answered that they believe this project is very important Over the 80% of the sample, thinks that the state participation and funding is necessary in such big and important project 8 to 10 participants answers that they would like to see the project starting immediately About the 9 to 10 participants answers that they would not be bothered from the works at their neighborhood.

(*) Pulse RC (www.pulserc.gr) survey for the Ministry of Transport & Communications, conducted by telephone between 27/8/2008 and 29/8 /2008 with a sample of 2,120 persons in Attiki, Thessaloniki prefectures and in the municipalities of Patra, Heraklion and Larissa, using the method of random sampling on people over the age of 18. (mean statistical deviation +/-5%)

The Project
Fiber To The Home

Characteristics of the Project

Open Access network model Development of a passive technology neutral optical fiber network for the coverage of the increased network requirements from the new interactive services via low cost and symmetric broadband connections with throughput bigger than 100 Mbps per user - connection. (Until now the asymmetric DSL could offered in theoretical base throughput up to 24 Mbps for download and 1 Mbps for upload.)

Creation of the Special Management Body of the National Optical Fiber Infrastructure (EFODIA), that will construct, maintain and provide the dark fiber to all network and electronic services providers.
The EFODIA will not offer any telecommunication & electronic services to the end user.

Passive Network Provider EFODIA

Network Provider

Service Provider

Budget analysis of the Project

The indicative budget of the project is 2,1 bill. The project will be co-funded by state and private investment under the scheme of Public Private Investments Partnership (). 700 mill. Greek state 1,4 bill. Private Investments

The state will pay availability dividends of 350 per home for the fiber availability (home passed).
Funding model will follow the law terms of competition in European Union Up to 3 Special Purpose Companies will be established. The duration of the partnership will be 30 years. Every service & network provider will pay a fee for the optical fiber usage to the EFODIA (home connected).

Splitting the Greek territory in 3 Zones

he Hellenic Ministry of Transport & Communications () carried out a study for splitting the Greek territory in 3 zones This study was based on demographic and geographic data

This methodology will allow the establishment of 3 parallel works in order to achieve a faster network roll out (home passed) and guarantee the completion of the project in the first 7 years.
This model will reduce the digital divide between urban and rural areas, inside the equivalence of the 3 zones.

Indicative Splitting in 3 Zones

1. The Attica municipalities have been divided in 3 groups, each belonging to one of the 3 zones, 2. the Thessaloniki municipalities all belong to one of the zones 3. and the rest 52 municipalities from the other areas of Greece are split to each one of the 3 zones

Equivalence of 3 Zones Revenues for the Investors

Cash Flow
2.000.000.000,00

1.500.000.000,00

1.000.000.000,00

Break-even @ 15 years

500.000.000,00

0,00 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

-500.000.000,00

-1.000.000.000,00 Cash Flow R1 Cash Flow R2 Cash Flow R3 Cumulative Cash Flow R1 Cumulative Cash Flow R2 Cumulative Cash Flow R3

Demand Forecast

There is an estimation that the bigger penetration will be 80% in the first 15 years
Fisher-Pry Curve
90,00% 80,00% 70,00% 60,00% 50,00% 40,00% 30,00% 20,00% 10,00% 0,00% 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Time

Synopsis of the Project

Passive network infrastructure (dark fiber) Architecture for open access and technology neutrality.

The passive network provider will not provide and services to the end user.
2 million connections in the first 7 years. Completion of the project with 1/3 of the whole budget within state funding. The time life of the partnership will be 30 years. At the end of this period the network will come to Greek state.

Draft Law
Fiber To The Home

Basic Axes of the Draft Law

The draft law will be the tool that is going to ensure the quick completion of the work and sets clearly the terms of competition according to the European Law. Also it provides some benefits in order to attract the investors. The 3 basic axes of the draft law are: 1. The provision of the rights for the way-roots of the optical fiber infrastructure installation 2. The facilitation for the co-allocation of the optical fiber installation with already existing network infrastructures 3. The assurance of the open access architecture and neutral technology network

Benefits from the Project

Fiber To The Home

The benefits of the Project

Bridge of the digital divide between urban and rural areas

Ensures the equivalence of opportunities of Greek citizens across broadband access. End user access throughput will be increased significant Low cost fees to the end user for broadband network access The new network infrastructure will guarantee the QoS Creation of new opportunities for small business

Drop of idleness through the generation of new work positions

Increase of productivity with parallel drop of the costs Improvement on the quality of life

Fiber To The Home

The Draft Law was under public consultation until 7 of September 2009 http://www.yme.gr Email communication: ftth@yme.gov.gr

Thank you !