A CADEMY OF T ELECOM M ANAGEMENT Center for Tele-Information ATM Knowledge Series Telecom Infrastructure & the Digital Divide: a European Perspective by.

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A CADEMY OF T ELECOM M ANAGEMENT Center for Tele-Information ATM Knowledge Series Telecom Infrastructure & the Digital Divide: a European Perspective by Prof. Knud Erik Skouby Director Center for Tele-Information (CTI) Technical University of Denmark Denmark FICCI World Telecom Day Symposium 16th May, 2002

A CADEMY OF T ELECOM M ANAGEMENT Center for Tele-Information EU’s approach to bridge the Digital Divide: Liberalization  Create one European Telecom Market (1987) –Open access to the traditional telecom infrastructure –SMP’s obligation to interconnect –Full liberalization of basic voice telephony Declared a success in the 1999 Telecom Review. SMP = Strategic Market Provider > 25% market share; OLO = Other Licenced Operators

A CADEMY OF T ELECOM M ANAGEMENT Center for Tele-Information EU’s approach to bridge the Digital Divide: The Information Society  Information Society Plans 1995 –Bangeman’s 10 Applications  Promotion of Broadband 2000 –ULL Directive –Promotion of roll-out of DSL  No Success - Yet –too early? Why do we need Broadband ? ULL = Unbundling of Local Loop

A CADEMY OF T ELECOM M ANAGEMENT Center for Tele-Information The Information Society Teleshopping E-commerce E-medicine Teleworking

A CADEMY OF T ELECOM M ANAGEMENT Center for Tele-Information Multidisciplinary Activities Multimedia & Tele- applications IT & organizations Economics, Markets & Regulation CTI Leading Idea Teaching and Research Training in the Sector Consultancy to Government Institutes & Industries

A CADEMY OF T ELECOM M ANAGEMENT Center for Tele-Information Broadband: the road to the Information Society Transport of the New Services facilitated by Convergence Information Technology Broadcast/ Media Telecom Information Society Services Interactive Digital TV 3G/4G Mobile W-LAN xDSL

A CADEMY OF T ELECOM M ANAGEMENT Center for Tele-Information Several Pipes to the Home  LLU – ’Raw Copper’  FWA  2G Mobile  3G Mobile  Cable Modem  Fibre to the Home  Satellite  Power Line Access

A CADEMY OF T ELECOM M ANAGEMENT Center for Tele-Information EU - Liberalization Status after January, 1998: 1999 Review Telecom Services Market € 160 bn € 191 bn Network Operators € 218 bn > € 600 bn Local International % +7 % Incumbents’ Market Share 96 % 91 % Fast Growing Market More Choice Some Prices Down Incumbents Still Dominate

A CADEMY OF T ELECOM M ANAGEMENT Center for Tele-Information EU-Unbundling Code Full Unbundling + Shared access : Access to non-voice part of the spectrum on twisted pair subscriber lines or on the distribution cable/ drop line from subscriber termination point to interfaces/ distrubution points in the public network. Main Distribution Frame MDF Distribution Point Distribution Cable Main Distributor of the Building Drop Wire Private Subscriber Interface Serving Area Interface Feeder Cable

A CADEMY OF T ELECOM M ANAGEMENT Center for Tele-Information ADSL Prices in Europe Source: Goldman Sachs Research estimates Communications Week international, 13 Aug 2001 * ECTA, January 2002

A CADEMY OF T ELECOM M ANAGEMENT Center for Tele-Information Telecom Market Scenario in Europe

A CADEMY OF T ELECOM M ANAGEMENT Center for Tele-Information Prices for Full Unbundled Access Source: EU COM, December 2001 €/ month

A CADEMY OF T ELECOM M ANAGEMENT Center for Tele-Information CTI is an initiative of the Technical University of Denmark and Tele Denmark, with strong support from the Danish government, to help Denmark developing an information society that is internationally competitive, while preserving its traditional values and culture. CTI provides a focal point for multi-disciplinary research and training in the new field of tele- information. CTI was established with contributions of core expertise and research capability from - economics and social sciences; - telecommunications engineering; and - mathematical modeling & operations research. CTI is now a leading international center of knowledge in the field of tele-information that encompasses : - new technologies and service applications; - government policies and regulations; - markets, organizations and demand; - economic, social and cultural implications of information society development. CTI has ITU's Secretary General on its Advisory Board. Center for Tele-Information (CTI)

A CADEMY OF T ELECOM M ANAGEMENT Center for Tele-Information Center for Tele-Information (CTI) Technical University of Denmark Denmark Academy of Telecom Management (ATM) New Delhi, India Tel: , … a strategic collaboration, towards common objectives.