Tunisia Broadband Strategy Instance Nationale des Télécommunications Tunisia Broadband Strategy (an overview) Hammamet, Sept 17th , 2012 Kamel.Saadaoui@intt.tn

Outline Key Broadband indicators/ Stats. Why is BroadBand important ? Assessement of the current situation: Strength; Weaknesses. The way Forward: What are the trends ? What are the goals ? How to reach them ? Conclusions/Summary.

Key Broadband indicators / Stats

Some basic Internet indicators Year 2012 Telephony penetration 128 % Broadband subscribers (xDSL + Mobile 3G) 9 % Estimated Nb of Internet users 4.2 millions Internet Bandwidth available 62 Gbps

PC penetration for households Internet penetration for households Household indicators 2010/2011 2012 PC penetration for households 19.1 N/A Internet penetration for households 11.4

Key statistics 3G mobile subscribers ADSL subscribers

Boadband market structure xDSL, LL, F.O; Wimax, EDGE, GPRS, VSAT, 3G Services Tunisie Telecom Orange Tunisie Tunisiana Infrastructure Hexa Orange Internet Tunet Gnet Topnet Five Private Internet Service Providers Education network Univ net Health net Agriculture net DEF Public community IP networks Service Providers National Internet Agency (National Exchange Point) 7 This structure stands for internet services

Why is BroadBand important ?

Why is it important ? It is about the socio-economic development: Better quality of life through online services. Citizens having an easy access to information (including OpenGov) E-participation . E-education and learning ….etc.

Why is it important ? Can/Will contribute to job creation, economic development (Internet: contributes to 2.9% of global GDP - source McKensey)

Assessement of the current situation (strength and weaknesses)

Strength (1) Strong competition between the three operators with global licences (Fixed, 2G, 3G). The broadband penetration rate is among the highest in the region. The ICT literacy rate is also among the highest in the region. Intensive use of social networks and online media.

Strength (2) Many e-content and e-services projects have been launched. The ADSL subscription fees as well as 3G fees are affordable by a large community of users (around 25 Dinars /month)

Strength (3) A Good International Connectivity SEAMEWE 4 KELTRA HANNIBAL

Strength (4) IP/MPLS backbone available and can be improved & Shared. The electricity company, the Tunisia Highway company and the railroad company have built their own F.O networks (will be made available to telcos).

Strength (5) The incumbent has 4 million copper lines available. Metro Ethernet Fiber in major cities is in progress. The digital TV (TNT) is in progress: Tunisia will make use of the digital divident (frequencies below 1Ghz)

Strength (6) Tunisia is a small country which could make it easier to make a full mobile broadband coverage

Overall 2G/3G coverage

Weaknesses (1) Not all the copper lines are good for xDSL. An ADSL customer has to deal with an ISP + a telecom operator. The ISP’s are not allowed to make a MultiPlay offer. Mobile broadband is now more attractive than fixed broadband.

Weaknesses (2) There is a digital divide between major cities on the coast and cities inside the country that are economically less developped. The Universel Service definition does not yet cover BroadBand. Local content is quite limited. Some e-services are available but not well utilized.

Weaknesses (3) The unbundling of local loop and Bitstream solutions haven’t been implemented, although decided by the regulator. Telecom operators still have problems sharing infrastructure.

Weaknesses (4) Installing new radio antennas has become very difficult and complicated (authorization process). The regulator Not Yet strong enough to oblige the operators to comply to its decisions (due to the current regulatory Framework).

The way forward

What are the main goals ? Considering the digital agenda for Europe is to reach 50% household at 100 Mbps by 2020 (lower speed for the other 50%), reasonable goals have been set, but will be reviewed this year while finalizing the ICT strategy.

The overall objectives Overall access capacity By 2016 By 2020 80% of households have access to fixed Broadband 30% of SME and public institutions can use F.O access 90% of households have Access to Broadband (Mix of DSL and FTTx) 90% of SME can use F.O 99% of population with 3G coverage 99% of population with 3G or 4G/LTE coverage

The overall objectives Broadband penetration By 2016 By 2020 (fixed) 40% of households 60% of households 90 % SME’s use F.O Mobile 20% of citizens 35% of the citizens

How to reach these goals (1) 1/ International connectivity: Tunisiana and Orange to install a seperate cable and a seperate landing station (2013- 2014) The F.O available at the electricity company will be used to better connect to neighboring countries (Algeria , Lybia) The international connectivity market could be liberalized to introduce new players and promote competition.

How to reach these goals (2) 2/ National Backbones: In addition to T.T, Tunisiana and Orange can use the F.O network available at the electricity company and other national companies to build their backbones (recent amendements of the Telecom ACT). The regulator will impose a cost based offer on the Leased F.O lines used for backhaul or backbone.

How to reach these goals (3) 3) Access networks: 3-a) Mobile/Wireless: Finalise the optimisation of the « national frequency plan » Launch a 4G pilot project on 2013 (1800 Mhz band). Licence the 4G services by 2014-2015, including the digital dividend frequencies (700 – 800 Mhz).

How to reach these goals (4) Split the white zones (zones blanches) among the Telecom operators and have everyone provide the 4G coverage for its own use, but allow open access to competitors (will be a requirement as part of the 4G licence). Impose the RAN Sharing and Tour Sharing since it has become difficult to find these ressources.

How to reach these goals (5) 3-b) Fixed/wireline access network (the mess): Preparing a law to force the realestate companies to do the civil engineering work needed for passing F.O. New buildings will need to be pre-wired by F.O.

How to reach these goals (6) The law will allow operators to share the available passive access infrastructure built by others. The incumbent is being forced to start implementing the Unbundling of local loop (rebalancing the access fees is part of this project - started july 2012 ! ). Operators will be encouraged (licence + allowing required frequencies) to use wireless point to point type of technologies to compete with the incumbent.

How to reach these goals (7) The F.O is the goal, but we need to use the copper lines (vDSL vectoring) while expanding the F.O access networks. We’re considering using the ICT promotion fund to help operators invest in F.O. The electricity company may play a major role if they expand the F.O to their « average/low » voltage eletricity networks.

How to reach these goals (8) Other measures: Connecting all the universities, schools, hospitals, national companies, with F.O or equivalent by 2016. Accelerating some content and e-services projects such as E-Gov …

How to reach these goals (9) Other measures (Cont) Capacity building: Provide funds for the civil society to do this work. Specific measures will be taken to help families with limited revenus to have access to ICT.

How to reach these goals (10) Make the required amendements to the telecom act in order to: Promote the technological neutrality and openness. To allow the lauching of Virtual Operators (MVNO/FVNO) that can help accelerate competition and add value and content.

How to reach these goals (11) To implement a better gouvernance model Reconsider the role of (INT, CERT, ANF, ANCE, ANSI …). + Institution in charge of personal data protection. + Local IGF recently lauched (Sept 2012). + Institution in charge of TV/Radio Broadcating. + give a more clear and consistent role for the telecom regulator (competition among telcos, ISP’s, MVNO’s + Numbering + Internet domain names).

Conclusion / Summary

In Summary (1) F.O to every household in 20 years will be a dream. This requires investments with a long term Return On Investment: No one will do it – unless the state provides the Fund (!) However, a reasonable quality broadband for everyone is possible by 2020, using a mix of mobile and fixed/wireline technologies, and a better competition framework, and regulation.

In summary (2) The state is a major player through the ICT promotion fund, the universel services fund, and a well negociated licences given to operators + Egov services (+ e-health, e-*) + improved education system …etc.

In summary (3) The civil society contributes to the capacity building plan, as well as content promotion and open gouvernance on a multistakeholder model. The Private sector is a key to success: operators, solution providers, Datacenters, ISP’s, sofware firms …etc. (PPP is considered as part of the fund raising plan).

In summary (3) Well regulated competition is crucial: Cost oriented wholesale, Infrastructure sharing, Universel services. Liberalizing IP services (VoIP national and International, any IP Internet services …) Fair competition (Telcos, MVNO, ISP …etc), QoS control. Predictability and transparency.

Thank you for your attention Instance Nationale des Télécommunications Thank you for your attention