In order to save the national economy, Europe and the United States government is struggling to finance the national broadband network construction, the development of broadband included in the broader public expenditure plans. In the current economic downturn and regulatory agencies would like to give the industry more incentives, such as could encourage sharing and cooperation in order to reduce the pressure on operators to ensure the normal development of universal service can be.
Governments to stimulate economic downturn, the broadband infrastructure for policy support and financial assistance, on the one hand is to ensure universal service, on the other hand is also important for economic recovery lay the material foundation.
Broadband rescue into a consensus
In the U.S., the new government said it would start nearly 800 billion U.S. dollars worth of economic stimulus plan, of which 72 billion would be used for broadband infrastructure investment. The U.S. government believes that every dollar invested broadband can return 10 times before.
In Portugal, the Government and its major telecommunications network operators in January to develop the next generation network to reach an agreement. Under the agreement, the Portuguese telecommunications network operators will have up to 800 million euros of credit for investment in new networks; the European Union may also provide development funds will be used for broadband deployment. December 2008, the Portuguese government has agreed to the development of broadband as part of its economic recovery program. Now, in addition to providing financial support, the Portuguese government also promised to enact legislation to reduce barriers to next-generation network investment and ensure the next generation of network facilities "equal access." In addition, the Portuguese government is also prepared by tax relief to stimulate broadband development. In response, the Portuguese introduced this year, operators agree that the user capacity of 150 million fiber optic network, and developed in collaboration with regulators Anacom new regulatory framework.
January, Hutchison Telecom's "3" won the Irish Government announced a contract for the Irish company to offer broadband services in remote areas, to ensure that in September 2010 before the realization of "universal broadband coverage." "3," the company said the network needed to invest 223 million euros will be Exche-quer Fund (a joint EU fund) and the company shared, will create 170 jobs.
In the UK, the government planned way to fund next-generation broadband network project, and give more control of policy incentives to stimulate the British economy. British communications, technology and broadcasting minister Stephen Carter announced a "Digital Britain" project, hope the revitalization of the UK's digital economy, stimulating economic growth. According to data provided by the British Government, the ICT and broadcasting industry, the overall annual revenue of 52 billion pounds and employ 50 million contribution to the GDP was 5.9%.
Regulatory agency was willing to introduce incentives for obvious reasons, on the one hand because of the financial crisis and sharp economic downturn change people's views on the control intervention; the other hand, does the investment in broadband can bring huge returns benefit more than just the communications industry, but the overall economy.
Different policy
Although just filed for bankruptcy protection for Nortel Networks, the series of "rescue" comes a bit late, but the government's financial support for building broadband equipment manufacturers will be a great encouragement. For operators, incentive policies can actually have much effect, countries are very much different.
In Portugal, the government promised broadband loans in principle, applicable to all regions of the FTTH network, including the densely populated cities and towns. The Government hoped that the new broadband infrastructure to support new social services such as telemedicine, distance education. Government's goal is to make all hospitals have at least 100Mbps of broadband connection.
However, the Portuguese Government hopes to spread in all areas of broadband, and this was the case in most countries there are differences. In general, the low-income areas and those in remote areas where the crowd is more concern in these areas to provide services to corporate profits is difficult, and therefore lack of investment power. Only operators straightforward subsidies, would encourage them to develop services.
Is a typical example of the United States, the United States the main destination of investment policy is to help broadband and wireless operators in rural areas, building networks and developed areas. In these areas, broadband operators need help. Market research firm Pike & Fischer Forecast: 2009 U.S. Although there are 5.7 million new broadband households signed a contract, but the overall broadband contract signing rate will drop 12%. The users of the new contract is expected that 75% of households would choose cable television company.
France, Sweden and a few European countries have made use of private service providers of investment experience in building public broadband networks. French telecom regulator Arcep private investment in the use of a wealth of experience. In the United Kingdom, to date, if the use of private capital, then trigger a series of political concerns, therefore, tend to use mainstream public finance policy, but the British Government on broadband development in rural areas funding is without precedent. Funding itself is not enough, analysts said: "The key problem is to create a transparent regulatory framework. France Arcep done well in this regard, the British left behind." Year in January, several broadband operators in France have signed a agreement, the gateway to point to point and multi-point FTTH test. SFR and Orange companies tend to deploy point of FTTH, and more inclined to form Free. Arcep test results will be analyzed to develop a shared future FTTH network control policy.
If the control operator's request to conduct large-scale investment, it is best not to restrict and interfere with their future services. In the new revised framework of the EU telecommunications law, the EU said it would prohibit the implementation of ISP services in the basis of different prices.
Reported to be studied
Currently, European carriers are continuing to implement next-generation broadband network strategy. Fixed-line operator Lattelecom in Latvia in the capital Riga this year, plans to build a new fiber-optic broadband network, and provides 100Mbps, including new services, including HDTV. Sweden B2 began service 65 cities in 80 million homes to provide 60Mbps broadband service.
However, some operators may find it difficult to recover the investment. Analysys Mason consulting firm to a new report: Financial crisis has increased the pressure on fixed network operators, making them more difficult to compete with mobile operators. The consulting firm expects 2008 to 2014, Western Europe's retail fixed voice service revenue will decline 50% revenue growth in broadband services will be reduced to single digits. On the whole, Europe's retail fixed line / broadband revenues during this period for an annual compound growth rate of -5.8%, the situation is quite grim.
Based on their respective positions, broadband network operators are often very different attitude and Sharing. In general, the dominant carriers, such as Portugal Telecom more willing to build their own network, and competitive operators hope that the sharing of costs. Enterprise service providers Oni is Portugal's second only to Portugal Telecom's second largest fiber optic network operator. View of the company is in an area that only a particular operator to deploy fiber, all operators can approach each other through the wholesale use of the network. "We want to avoid duplication of investment, should be jointly funded and coordinated mutual aid." Oni CEO Rodriguez-Martin said. He said that regulatory bodies will play in this most critical role, in addition to avoiding waste, but also prevent monopoly behavior of fiber-optic network. Many people share his view, the business model fiber-optic network there is uncertainty, the scale of investment is so large (23 million euros), must be fully utilized, if the market is too split, it is difficult to enjoy the benefits of this investment.
So far, Portugal Telecom, Zon Multimedia, Sonaecom and Oni have expressed interest in the official offer of credit terms. In the country have both mobile and DSL network, the international giant Vodafone is also considering to join the ranks of the credit application. These operators before the end of February to discuss how to build networks, to individual firms and other companies plan to coordinate and complement each other.
In the broadband services market, the bundle may be a way out of difficulties. Telekom Austria said that to reverse the trend of declining fixed-line revenue, and launch mobile broadband and bundled packages, but the measure is valid, remains to be seen.